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How to Spend Money Wisely

Last Updated: January 15, 2024 Approved

This article was co-authored by Andrew Lokenauth . Andrew Lokenauth is a Finance Executive who has over 15 years of experience working on Wall St. and in Tech & Start-ups. Andrew helps management teams translate their financials into actionable business decisions. He has held positions at Goldman Sachs, Citi, and JPMorgan Asset Management. He is the founder of Fluent in Finance, a firm that provides resources to help others learn to build wealth, understand the importance of investing, create a healthy budget, strategize debt pay-off, develop a retirement roadmap, and create a personalized investing plan. His insights have been quoted in Forbes, TIME, Business Insider, Nasdaq, Yahoo Finance, BankRate, and U.S. News. Andrew has a Bachelor of Business Administration Degree (BBA), Accounting and Finance from Pace University. There are 11 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 22 testimonials and 93% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 740,823 times.

Do you hate it when you really need money, but your wallet is empty? No matter how little or how much money you have, spending it wisely is a good idea; it enables you to get the most bang for your buck. Follow these tips to reduce expenditures in key areas and adopt a safer overall approach to shopping.

Spending Basics

Step 1 Create a budget...

  • Organize your purchases by category (food, clothing, entertainment, etc.). Categories with the highest monthly amounts (or monthly amounts you consider surprisingly high) may be good targets for saving money.

Trent Larsen, CFP®

  • Make a preliminary trip before you go on your real shopping trip. Note the prices of several alternatives at one or more stores. Return home without buying anything and decide which products to buy on your second, "real" expedition. The more focused you are and the less time you spend in the store, the less you'll spend.
  • If you are motivated to treat each purchase as an important decision, you will make better decisions.
  • Do not accept free samples or try something on just for fun. Even if you don't plan on purchasing it, the experience can convince you to make a decision now instead of considering it carefully in advance.

Step 3 Avoid impulse purchases.

  • Don't browse store windows or shop for fun. If you're only buying something because you find the act of shopping fun, you'll likely end up spending too much on stuff you don't need. [2] X Research source
  • Don't make purchasing decisions when your judgment is impaired. Alcohol, other drugs, or sleep deprivation [3] X Research source can harm your ability to make sensible decisions. Even shopping while hungry or listening to loud can be a bad idea if you don't stick to your shopping list.

Step 4 Shop alone.

  • Do not take advice from store employees. If you need a question answered, politely listen to their response but ignore any advice on purchasing decisions. If they won't leave you alone, leave the store and return later to make your decision.

Step 5 Pay in full and in cash.

  • Don't bring more cash with you than you need. If you don't have the extra money, you can't spend it. [5] X Research source Similarly, withdraw your weekly budget from an ATM once a week rather than filling up your wallet whenever you run out.

Step 6 Don't be fooled by marketing.

  • Don't buy something on the basis of an advertisement. Whether on television or the product's packaging, treat ads with skepticism [6] X Research source . They are designed to encourage you to spend money and will not provide an accurate portrayal of your options.
  • Don't purchase something just because it's reduced price. [7] X Research source Coupons and sales are great for products you were already planning to buy; purchasing something you don't need just because it's 50% off does not save money!
  • Be aware of pricing tricks. Translate that "$1.99" price into "$2". Judge the price of an item on its own merits, not because it's a "better deal" than another option by the same company. (By making the "worse deal" atrocious value, someone can trick you into paying more for add-ons you don't need).
  • Don't automatically buy the mid priced product within a category. Marketers know that if they want you to buy a high-priced product instead of a low-priced product, they can influence your decision by adding an outrageously expensive product to make the high-priced product intermediate in price and look reasonable in comparison.

Step 7 Wait for sales and discounts.

  • Only use a coupon or take advantage of a discount for an item you absolutely need or decided to buy before the discount occurred. The attraction of a cheaper price is an easy way to get customers to buy something they don't need.
  • Buy products only useful at particular times of year during the offseason. A winter coat should be cheap during summer weather.

Step 8 Do your research.

  • Don't be fooled by lower monthly payments. Calculate the total amount you'll spend (monthly payments x number of months until fully paid) to find out what the cheapest option is.
  • If you're taking out a loan, calculate how much total interest you'll have to pay.

Step 10 Give yourself occasional, inexpensive treats.

  • Set aside a very limited amount of money in your budget for these treats. The goal is to give yourself a small reward to keep your spirits up and prevent a giant splurge later.
  • If your usual methods of treating yourself are expensive, find cheaper alternatives. Take a bubble bath at home instead of going to the spa, or borrow a movie from the library instead of going to the theater.

Spending on Clothing

Step 1 Only purchase what you actually need.

  • Clearing out your closet is not an excuse to buy replacements. The goal is to find out what types of clothing you have enough of, and which you actually need more of.

Step 2 Know when to spend more for quality.

  • Remember that price doesn't guarantee quality. Research what the longest lasting brands are rather than assume the most expensive option is best.
  • Similarly, wait until the item you need goes on sale when possible. Remember not to use sales an excuse to purchase items you don't require.

Step 3 Shop at thrift stores.

  • Thrift stores in more affluent neighborhoods usually receive higher-quality donations.

Step 4 If you can't find it in a thrift store, buy cheap, generic brands.

Spending on Food and Beverages

Step 1 Compile a weekly menu and shopping list.

  • This will not only prevent you from making impulse buys at the grocery store, but also prevent wasting money due to food waste, a major expenditure for many people. [9] X Research source If you find yourself throwing away food, reduce the size of your planned meals.

Step 2 Learn tips for saving money on food

  • Pack a lunch at home instead and bring it with you to work or class.
  • Fill a water bottle using your tap at home instead of buying expensive bottled water.
  • Similarly, if you drink coffee frequently, buy a cheap French press and save money by preparing it at home.

Saving Cash Wisely

Step 1 Save Money...

  • Establish an emergency fund.
  • Avoid unnecessary fees.
  • Meal plan your meals for the week

Step 2 Break free of...

  • Will I use this item regularly? Make sure you'll drink all that milk before it goes bad, or that you have enough summer months left to wear that skirt more than a couple times.
  • Do I lack something that serves the same purpose? Beware specialized products whose role can be performed by basic items you already have. [13] X Research source You probably don't need ultra-specialized kitchen equipment, or a special workout outfit when sweatpants and a T-shirt will work just as well. [14] X Research source
  • Will this item change my life for the better? This is a tricky question, but purchases that encourage "bad habits" or cause you to neglect important parts of your life should be avoided.
  • Will I miss this item if I don't buy it?
  • Will this item make me happy?

Step 4 Prune your hobbies.

Community Q&A

Tom De Backer

  • When comparing two cars, calculate how much more you'll spend in gas money if you buy the less efficient (lower MPG) model. [15] X Research source Thanks Helpful 0 Not Helpful 0
  • Avoid dry-clean only clothing. Check the tags before you purchase any clothing. You don't want to repeatedly spend money on dry cleaning. [16] X Research source Thanks Helpful 0 Not Helpful 0
  • Following a budget will be much easier if the entire household is committed. Thanks Helpful 6 Not Helpful 1

Tips from our Readers

  • Do your research before buying something new: is it worth spending the money? What's the best value you can find? Resist automatically going for the cheapest item you can find, though, since cheap stuff is usually low-quality, meaning you'll likely have to spend more money replacing it in the long run.
  • You can still enjoy a nice meal out while saving money. For instance, instead of paying for a drink, stick to water or hot tea and lemon, since it's typically free. Skip the appetizer, or split your food with a friend, since restaurant portions tend to be pretty big anyway.
  • Be cautious about who you loan money to, and try not to loan what you can't afford to lose. If friends or relatives ask you if they could borrow some money, try to keep track of what you've loaned them, and maybe come up with a payment plan with them if it's a large sum.

wise spending essay

You Might Also Like

Ask For a Pay Raise

  • ↑ Trent Larsen, CFP®. Certified Financial Planner. Expert Interview. 22 July 2020.
  • ↑ http://mywifequitherjob.com/how-to-build-wealth-by-spending-money-wisely/
  • ↑ http://www.sltrib.com/sltrib/money/56846293-79/sleep-shopping-deprivation-foods.html.csp
  • ↑ http://www.moneycrashers.com/psychology-of-money-saving-spending-habits/
  • ↑ http://money.howstuffworks.com/personal-finance/budgeting/10-tips-for-staying-on-budget.htm#page=2
  • ↑ http://pbskids.org/itsmylife/money/spendingsmarts/article8.html
  • ↑ http://money.msn.com/how-to-budget/6-habits-that-will-make-you-broke.aspx
  • ↑ http://www.moneycrashers.com/importance-splurging-avoid-frugal-fatigue-splurges/
  • ↑ http://www.lifehack.org/articles/money/7-ways-spend-money-wisely.html
  • ↑ http://www.csmonitor.com/Business/Saving-Money/2012/0510/23-ways-to-save-money-on-clothes
  • ↑ http://financialplan.about.com/od/savingmoney/a/newcarmistakes.htm

About This Article

Andrew Lokenauth

If you want to spend money wisely, create a budget to track how much money you spend on each category, such as food, clothing, entertainment, and living expenses. Then, try to plan each purchase in advance so you know how much money you will be spending and will be able to avoid impulse purchases. When you do spend money, pay in cash to prevent overspending or interest charges for unpaid credit card balances. Whenever possible, wait for a sale to purchase big-ticket items, like a new laptop, at a discount. For tips on spending less for food and clothing and starting a savings fund, scroll down! Did this summary help you? Yes No

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The Thought Card

5 Smart Ways To Make Wise Spending Decisions As Financially Savvy Travelers – Episode 150

Wise spending for financially savvy travelers.

Knowledge is power. The more knowledgeable I’ve become, the more I can make informed financial decisions that benefit me as a traveler. In my book, We Are Financially Savvy Travelers , we talk about how improving your knowledge base is an important component of financially savvy travel. That can look like learning from blog posts and articles, enrolling in courses, listening to travel podcasts or trial-and-error. Today, we’re peeling back another layer of financially savvy travel. Often overshadowed by the appeal of spending less, learn about the differences between wise spending and spending less and valuable ways to spend money wisely as financially savvy travelers.

  • [7:14] The difference between wise spending and spending less
  • [10:35] Ways to spend your money wisely as financially savvy travelers
  • [13:45] Good deal vs great deal
  • [21:09] Shortlist of best travel newsletters

Prefer audio? Listen to this podcast episode here, or choose a podcast player below.

Listen on Apple Podcasts  |  Spotify  |  Amazon Music  |  iHeart  |  Any player

Danielle Desir Corbett: Knowledge is power. The more knowledgeable I've become, the more I'm able to make informed financial decisions that benefit me as a traveler. In my book, We Are Financially Savvy Travelers, we talk about how improving your knowledge base is an important component to financially savvy travel. That can look like learning from reading a book, reading articles, taking courses, listening to travel podcasts, or from trial and error. In this episode, we're peeling back another layer of Financially Savvy Travel. We're going to be covering two important pieces. The differences between wise spending and spending less. And I'll be sharing with you five ways to spend money wisely as financially savvy travelers. If you're new here, hi, I'm Danielle Desir-Corbett, a financially savvy traveler. I've been talking about financially savvy travel online since 2015. Yeah, that's like eight years at the time of this recording. I believe that you can be well traveled, you can pay off your debt, and also build wealth. And adopting a financially savvy travel mindset has helped me to travel to over 27 countries. And I'm just getting started. If this is your first episode, then go ahead and follow the podcast because you'll get new episodes automatically sent to your phone the minute I hit publish. There are over 170 episodes available for you to listen to, which has been five years in the making. And many of you have been with me since the very beginning, and I so appreciate that. If you're keeping track, I launched a show in 2018. Before we jump into today's episode, I wanted to take a moment to shout out our sponsor. I really appreciate Aura for partnering with me on this three-part series. And also, thank you to you all, my dear Financi Savvy Traveler listeners, for tuning in and giving Aura a try with their 14-day free trial. We all know that protecting our digital assets is an absolute must. But let's face it, managing separate password managers, VPNs, credit and transaction monitoring, and even spam call protection from various providers can be a real headache, not to mention pricey. That's where Aura comes in. Aura is your all-in-one digital protection solution where you can get premium high-value protection for one reasonable price. Whether you're an individual, a couple, or a family, Aura has you covered. Our family relies on Aura to shield us from theft and financial fraud. But that's not all. Aura goes the extra mile with child safety features helping us monitor content, block dangerous websites, and prevent cyberbullying as our kids grow up. So here's your chance to simplify your online safety while saving big. Try Aura today with a 14-day free trial when you use the link in our show notes or visit Aura.com slash savvy. A big thank you to Aura for teaming up with us on this episode. Welcome to the Thought Card, a podcast about traveling money, where planning, saving and creativity leads to affording travel, building wealth and paying off debt. We are the Financi Savvy Travelers. Alrighty, why spending is about making thoughtful and intentional money decisions, aligning our spending habits with our priorities. Here's a couple of reasons why making informed financial decisions is really important for us. Number one, we're able to allocate our hard earned funds strategically. We are trying to get the most value out of every single dollar that we spend. But I also think that there is an important piece of advocation here as well, meaning that we are advocating also for ourselves. When we know certain things, how things move in the travel industry, we can peep when something is off and we could speak up and we could advocate for ourselves. Another aspect when it comes to making informed financial decisions is unlocking these savings opportunities, right? Part one, we do want to get the most value, but sometimes because we are aware of what's possible, we're able to tap into those savings and actually end up spending less, which to many of us is amazing and great, right? But on a more practical and honestly, just a more realistic view of making informed decisions, it helps us to extend our travel funds. We can go further. We can travel longer. So I always say that travel and money go hand in hand. You need money to travel, regardless if you're spending minimally. At some point, you're going to have to spend money. And when you are coming to the table as an informed traveler who is going to be making informed financial decisions, you have so much going for you. Again, you have this strategy, you're looking at value, you may be looking at savings, and it just, again, fuels your ability to travel, which is very, very powerful. Now, what I often see out there in the world because we've talked about this in previous episodes that a lot of times people lump us into this budget travel category. But let me clarify something very important. Why is spending in the travel space is often overlooked or shadowed by this concept of spending less money? And we hear it all the time. We hear travel more and spend less. But I believe financially savvy travel is all about the subtle nuances. Why spending and spending less are related, but they differ in a couple of ways. So let's break it down. Why spending involves making thoughtful and strategic decisions with your money, right? It's about prioritizing your values, getting the most out of your purchases, and this alignment where you're aligning your spending with your financial goals. On the other side, spending less means reducing the amount of money you spend. While spending less can be part of wise spending, it might involve cutting back without considering the value or impact. When you are solely focusing on spending less, you might be sacrificing quality, you might be sacrificing convenience, or you may be skipping out on experiences altogether just to minimize costs. So again, these subtle nuances, which is again, why I wrote the book, We Are Financially Savvy Travelers, it's why I spent so much time really thinking about what makes us so distinct and unique and why I typically have this reaction when someone says that you're a budget traveler, I usually react poorly to that. And I was trying to unpack why I was feeling that way and what makes us different. And like I said, writing this book really was just eye-opening for me to have this critical look. And again, there are just these nuances, these very subtle nuances. And again, as Financially Savvy Travelers, it feels natural. Like I know for me, I'm always looking at value. I'm looking at my goals and my priorities, and I'm thinking about mindfulness and alignment. but it's never really been said out loud. And there is a distinction. There is a true distinction between, okay, I want to get the best value out of this, but I want to also do the things I really want to do. And I understand that money plays a role in that, but I want to spend on the things that are important to me versus those experiences where I just, I'm like, I am not going to do that. Like, I'm just trying to be, do the minimal or bare minimum. I'm focusing on spending less. So all that to say that there are subtle differences, and financially savvy travelers, they do think about spending less, but there's also this piece of wise spending element, this thoughtfulness, this strategy piece, the value-based spending again, getting the most out of our purchases, and this alignment. Alignment is this recurring theme that we've been seeing in this series, and also mindfulness as well. Again, I hope that clarifies the differences and nuances, the subtle differences between the two. And let's move on to the five different ways that you can be a more informed traveler. So the first thing that comes to mind is knowing the rules of engagement. There are lots of things when you sit down and think about whether it's at the airport or credit card travel hacking or airline or hotels, like all of these subcategories in travel have different rules of engagement. And when you know what you are entitled to, you are able to make better, more informed decisions because you know the rules. For example, what happens if you purchase the flight and you need to cancel within 24 hours? Well, if you're based in the US and you're doing your thing, you can cancel your flight within 24 hours, no penalties, you'll get your money back, no issues, regardless of your plane ticket. It's just one of those protections that we have. But if you don't know that exists, you may end up missing that 24 hour window and you may now be getting airline credit or just completely wasting that funds because your airline maybe doesn't have a program where you can get credit back. right? Or let's say you end up missing or canceling a flight and you get credit back and you don't realize that your credit from your airline company has an expiration date. And then you miss the expiration date, time has passed, and now you just really truly lost out of money. So these are just like simple examples of just airlines alone. Knowing these rules of engagement can really put you in a powerful, knowledgeable position. So knowing the rules is really important. And it may be, I know, sometimes challenging, especially if you don't have a lot of experience traveling to like know every little thing, but it's something that you acquire over time. And I'm sure, like, for example, listening to this podcast, you may have picked up things over time, right? So we kind of continue to put little nuggets into our file cabinets in our brains, right? We put little nuggets in there, and when we need it, we pull it out. We're like, oh, yes, I remember that. Or, oh, yes, let me look into that. Or how does this work again? Am I positioning myself well? All those things happen when you know the rules of engagement. Something else to note here is that rules change. Things change. Especially if you're in the points and miles space. Things change all the time. Airlines change all the time. So just be aware that know the rules of engagement, but also understand that things change. And we're going to be keeping up to the times to make sure that, again, we stay knowledgeable and we stay up to date with what's going on. Now the second way that you can make more informed decisions is to know the differences between a good deal and a great deal. And to do this, you really have to get comfortable and start tracking and comparing prices. And what's important here is to compare apples to apples. So for example, let's say you're planning a trip to New York City and you're thinking about a four star hotel and you're comparing these two different prices, but one hotel is four star and the other hotel is two star. So in this situation, you're actually comparing apples to oranges because they're not even in the same hotel class. So that's something to be mindful of and aware of when you are comparing, especially when you're paying like hotels. Again, because some hotels may have more perks and things built into the price. Again, we won't go too deep into it, but you get what I'm saying. Another thing that's really important when it comes to the differences between a good deal and a great deal is establishing a price baseline. I won't go too much into detail here because I break it all down and also stress the importance and how to calculate everything in We Are Financially Savvy Travelers. But to just give you a very quick gist, it's really understanding and knowing when something is on sale. And for you to know that something's on sale, you have to know the regular price. You have to have seen the regular price with your own eyes for you to know and say, okay, now is the best time to hop on this because I've seen it at multiple price points and this is the best. price. Again, in order to do that, you need to be tracking, you need to be comparing, and you need to be on it. So for example, I love Bermuda. Bermuda is top three destinations I've been to in the world so far. And I've spent the last year and a half tracking my Bermuda flights. and it wasn't until recently that flights have come down. So flights have been anywhere from 500, 600 plus thousand of dollars and I was like no. So I've been just kind of keeping an eye on prices and recently it's come down to 300, and 50 plus dollars. So because I've established this baseline, I know when something's on sale. I know when Bermuda is on sale. So I'm going to go and jump on this Bermuda flight because I've been tracking it for so long. And again, I am knowledgeable and aware of what's good and what's great. A lot of times there will be promotions and marketing out there that tells you that this is the best travel deal ever. But really though, is it? I beg to differ. And the only reason I can say that is, again, because I know the difference. I know what a good deal is. I know what a great deal is. I know what prices are. And I can tell if something is truly at a discount versus just a marketing ploy. All right, so that's number two is knowing the differences between good deals and great deals. Now, number three on the list of, again, making informed and wise spending decisions is doing your research and planning ahead. When you plan ahead and do your research, you undoubtedly are aware. You are gonna know things like the currency at the destination that you're traveling to, the tipping culture, which actually financially impacts you a lot, okay? In the US, we tip anywhere from 15, 17 plus percent that adds up compared to somewhere like Iceland where tipping is not required, it makes a big difference, okay? So things like, again, currency, tipping culture, even how much it costs to go to a destination. So on my website, thoughtcard.com, I intentionally create trip costs budget breakdown so that all of my listeners, all of my readers can know exactly how much I spent as this financially savvy mid-budget traveler. So when you know, on average, how much food costs or how much a trip costs in general, you can now start to put pieces together, have a more accurate savings goal for yourself. And again, it puts you in this more informed, knowledgeable headspace. So research and planning ahead, definitely on the list of things to do. Alrighty, moving on to number four is tracking your travel spending. And again, we talk about this in my book again, but one of the important things when it comes to tracking your spending on the road is to do a trip debrief. And in this trip debrief, you're going to look at all the things you spent your money on and you're going to be asking yourself, okay, where did I spend money? What do I want to change? It's really an analysis and taking stock and saying, okay, what did I do really well here? Did I stay on budget? Did I go over budget? And what do I want to change? And a lot of times when we're looking at our expenses after a trip, we're looking at what do I have to adjust? What do I have to reduce or eliminate completely? And again, in the book, I have a really good example about a trip I went on and I spent excessively on an item that I would never do at home. And I thought that was a really good example of, okay, if you don't take a step back when you come back from a vacation and really look at your money spending, you won't realize where you could have saved or where you were going overboard or where maybe you were a little bit wasteful or maybe something didn't pan out and you would change that for the future. So there's a lot of nuggets and gems that come from a trip debrief and I break it all down in the book. So again, I encourage you to grab the book because you'll get all the deets in there. But tracking your travel spending is very powerful and will definitely definitely make you a more knowledgeable traveler. And this definitely couples in with your travel style, right? Because again, if you know your travel style and you look at your spending and you're like, whoa, I did not even spend any money on the things I care about. And I spent all this money on things I didn't care about. You're going to start to move and adjust differently for next time. Right. So there's a lot of learning lessons just right there by simply just tracking your travel spending. All right, so the last tip I have for you when it comes to making informed financial decisions is to keep up with travel news. I kind of teased it in the first one, but keeping up with travel news is so important. That can look like signing up for newsletters for the brands that you want to keep in touch with, And, you know, all these news will come out and you could know about the latest hotel mergers, the latest airline acquisitions. You can really pick up on tips and tricks. You can learn things like lucrative partnerships, like the Delta and Airbnb partnership, where you can earn points and miles. by just going to a special link and you can get Delta points on your Airbnb stays, right, for example. So there's lots of ways for you to kind of stay in the know. Of course, listening to this podcast is one of them, but I wanted to share with you a couple of newsletters that I trust and I'm subscribed to and have been for many, many, many, many, many years. So the Points guy, I love them for maximizing travel rewards and they give lots of updates and travel news and industry news in the industry. So they're really great for staying in the know. Also another one of my favorites is Thrifty Traveler, of course, for all things cheap flights. They also do a great job with travel news, travel updates, and also travel rewards as well. The Airline Observer by Brian Summers is great for airline business news and analysis. And another newsletter by Hotel Addict is great for hotel news, reviews, and also trends. So overall, I hope you enjoyed this episode and it gave you lots of food for thought with plenty of examples of how you can make more informed decisions as financially savvy travelers and different ways it can look like. So I want to stress again, know the rules of engagement or try to at least try to at least understand and know what you're getting yourself into. Know the difference between a good deal and a great deal by tracking and comparing prices. Research and plan ahead for your trips, especially if you're going internationally. Track your travel spending, break things down when you come back home, look at your spending, look at your receipts, Look at your bank statements because there's lots of clues about your money and your spending habits right there that you can analyze and make decisions moving forward, whether you want to adjust, reduce, or eliminate some categories completely. And then lastly, keep up to date with travel news. There's lots of incredible newsletters and even travel podcasts. So in episode 121, I shared a few of the travel podcasts that I love, and trust and recommend anyone who would listen, but there's a blog post. So if you go over to thoughtcard.com slash travel podcast, again, that's two words, travel podcasts. I keep this blog post updated. on the daily and we have now 31 must follow travel podcasts that you must follow because they're so good. And again, I want to make sure everyone is aware of just the amount of incredible travel audio content there is out there. and they're really great for keeping you updated. All right? So if you're loving this series, you know what to do. Go grab my new book, We Are Financially Savvy Travelers. It's chock full of insights to help you become more money mindful without compromising your other money goals. Because let's face it, travel is a money goal and we got other goals to accomplish. Am I right? I am right. We Are Financially Savvy Travelers is available on Amazon, Barnes & Noble, Apple, and also your local library. Ask your local library to order the book. They will. And that's also just a great way to have the book in way more hands. So order the book on your local library. Get it in the hands of your local community. Let me know what you think about the book. I love to hear from you. All right, financial savvy travelers, that is all for this episode. I will catch you in the next one. Bye.

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  • Wise Spending vs Spending Less

Table of Contents

1. Know the Rules of Engagement

2. differentiate between good deals and great deals, 3. research and plan ahead, 4. track your travel spending, 5. stay up-to-date with travel news.

In the frugal travel space, we often hear the advice to “travel more and spend less.” While this mantra holds some truth, it’s important to recognize the subtle nuances between the two.

Wise Spending: Spending money wisely involves making thoughtful and strategic choices with your money. It goes beyond simply cutting back on expenses but prioritizing value, getting the most out of your purchases, and aligning your spending with your financial goals. When you practice spending wisely, you consider the long-term impact of your financial decisions and ensure they align with your priorities.

Spending Less: On the other hand, spending less means reducing the amount of money you spend. While spending less can be a part of wise spending, it often involves cutting back without necessarily considering the value or impact. When you focus solely on spending less, you may sacrifice quality and convenience or skip experiences altogether to minimize costs.

While spending less can help you save money in the short term, wise spending considers the bigger picture. By making informed financial decisions, allocate your funds strategically, get the most value out of your purchases, and unlock savings opportunities. Spending wisely also allows you to extend your travel funds, enabling you to travel further and longer.

Tired of reading? Listen to this podcast episode on YouTube.

5 Ways To Spend Money Wisely As Financially Savvy Traveler

Maximize your travel budget like a pro with these five smart strategies for making wise spending decisions.

Familiarize yourself with the rules and policies of airlines, hotels, and other travel providers. Understanding your rights and entitlements will empower you to make better decisions and advocate for yourself when necessary.

When you know what you are entitled to, you are able to make better, more informed decisions because you know the rules. Danielle Desir Corbett

Track and compare prices to establish a baseline for what constitutes a good deal. This will help you recognize when something is truly on sale and worth investing in.

Take the time to research your destination, including currency, tipping culture, and average costs. I have an entire section of my site dedicated to trip cost breakdowns . Planning ahead allows you to budget accurately and make intentional money decisions about where to allocate your funds.

Listen to this podcast episode on Spotify.

Record your expenses and conduct a trip cost debrief when you return home. Analyze your spending habits and identify areas where you can adjust, reduce, or eliminate expenses for future trips.

If you don’t take a step back when you come back from a vacation and really look at your spending, you won’t realize where you could have saved or where maybe you were a little bit wasteful.” Danielle Desir Corbett

Subscribe to newsletters and follow trusted travel sources to stay informed about industry news, promotions, and travel rewards. Keeping up with travel news will help you make informed decisions and take advantage of opportunities to save money.

Some of my favorite trusted sources for up-to-date travel news are newsletters that provide valuable insights and updates on various aspects of the travel industry. Here are a few of my favorite travel newsletters.

The Points Guy : This newsletter is perfect for those looking to maximize their travel rewards. It offers tips, strategies for earning and redeeming points, travel updates, and industry news. Whether you’re interested in airline miles, hotel points, or credit card rewards, The Points Guy has you covered.

Thrifty Traveler : If you’re searching for cheap flights , Thrifty Traveler is the newsletter for you. It provides regular updates on flight deals and offers tips on how to find the best prices for your next trip. Whether you’re planning a domestic getaway or an international adventure, Thrifty Traveler can help you save money on airfare.

Listen to this podcast episode where I interview the founder of Thrifty Traveler, Jared Kamrowski .

The Airline Observer by Brian Sumers: The Airline Observer is a must-read for those interested in airline business news and analysis. This newsletter dives deep into the inner workings of the airline industry, providing insights into mergers, acquisitions, and other industry developments. Stay informed about the latest trends and changes in the airline world with this informative travel newsletter.

Hotel Addict : If you’re a hotel enthusiast or simply want to stay updated on the latest hotel news, reviews, and trends, Hotel Addict is the perfect newsletter. It covers everything from new hotel openings to renovations, as well as insider tips and recommendations for finding the best accommodations for your travels. Stay in the know about the latest developments in the hotel industry with Hotel Addict.

Whether you’re looking to maximize your travel rewards, find cheap flights, stay updated on airline business news, or stay in the know about the hotel industry, these newsletters have you covered.

Next, I encourage you to continue binging the series:

What People Get Wrong About Financially Savvy Travel – Episode 148

How Money Mindfulness Can Help You Travel More Next Year – Episode 149

If you’ve enjoyed my take, you’ll love my new book, We Are Financially Savvy Travelers . It’s chock full of insights to help you become more financially mindful and travel more without compromising your money goals.

Available on Amazon , Barnes & Noble , Apple Books , and your local library. Yes, ask your local library to order the book!

Also, check out my other travel books!

Other Content You’ll Enjoy

  • Why You Need a Travel Fund – Episode 2
  • How To Define Your Travel Style – Episode 102 
  • How I Became a Financially Savvy Traveler – Episode 69

wise spending essay

Danielle Desir Corbett paid off $63,000 of student loan debt in 4 years, bought a house at 27, and has traveled to 27 countries, including her favorites, Iceland, China, and Bermuda. Go here to learn Danielle’s incredible story, from struggling financially and in debt to finding creative ways to earn more and live on her terms. Listen to The Thought Card Podcast , where Danielle shares how you can creatively travel more and build wealth regardless of your current financial situation. Reach out to Danielle by contacting: thethoughtcard (at) gmail (dot) com.

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Top Tips for Spending and Managing Money Wisely

You don't have to be a personal finance expert to be good with money. Anyone can take steps to develop good money habits and achieve greater financial flexibility and freedom! It all starts with understanding how to spend money wisely and how to manage your money effectively.

What Does it Mean to Spend and Manage Your Money Wisely?

Spending wisely is more than just keeping track of your bills and having a good credit report. Spending your money wisely is a way of life! Spending less than your income while continuing to pay your bills on time and in full allows you to save for future needs. ​Aligning your spending habits with what matters most to you will help you reach your biggest money goals.

Helpful Tips for You

Are you ready to get started on your journey to saving money and spending money wisely? Here are some helpful tips to consider:

  • Track your spending—every dollar! Before you can manage your money wisely, you need to understand where your money goes each month. That's why tracking your spending is so important! Save your receipts and write each purchase in a notebook. You can also use a digital tool like Money Management to track and categorize your spending. Money Management will give you a very clear picture of your spending habits, which you can use to create an accurate monthly budget .
  • Look for expenses to adjust, reduce or eliminate As you evaluate your spending habits, identify room for change. Some questions you may want to ask yourself include:
  • Do your purchasing habits match your priorities and financial goals?
  • Which categories could you trim to save more money?

You can save money by listing your expenses in order of importance from "must-haves" like living expenses to "nice-to-haves" like new shoes and clothes.

  • ​​​​Give your money a purpose After you pay bills, if you don't have specific goals for your leftover income, you might end up spending the funds you have leftover at the end of the month rather than saving them. But by giving your money a dedicated purpose, you can use it to help you live the life you want to live! What goals do you have for your money? It could be boosting your emergency fund, upgrading your car, paying for a child's education, taking a dream vacation or even donating to the causes you care about. Once you have enough money saved to start putting it towards certain goals, open separate  savings accounts and name them for each goal. These savings accounts will help you establish a plan for your extra money, including any additional income you receive through raises, bonuses or your tax refund.
  • Stay flexible Learning to develop a financially savvy plan to spend and manage money wisely takes practice. When you're first getting started, you'll probably need to adjust your budget and spending habits so that you can meet your goals. Stay flexible and try to make money management part of your daily routine—it's worth it!​

For more tips on the road to financial independence and how to spend money wisely, view our Spend & Mange Wisely Brochure here .

How We at Wright-Patt Credit Union Can Help

At WPCU, we want to help you succeed in your journey to spending wisely and give you the tools you need to spend money wisely. We have a variety of helpful tools to make the process easier, including budgeting worksheets and spreadsheets , spending tips and interactive learning modules for spending and managing your money. ​

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Spending Money Wisely

Author: Financial Success | Image: Financial Success

Figure out your budget

Making a budget can seem like a time-consuming thing to do, but it is one of the most important steps in order to ensure that you are financially organized. Creating a budget is going to allow you to track your spending, so you know exactly what you are spending your money on, and from there, you are going to be able to become more successful when it comes to achieving your financial goals. The 3 keys to creating a successful budget are tracking your spending, paying off major bills first, and then creating a spending plan.

There are many easy ways to start creating your budget, including

  • An Excel Spreadsheet
  • CashCourse Budget Wizard
  • Mint: Personal Finance & Money (In the App Store)
  • Template on the Office of Student Financial Success website

What creating a budget is going to do is help you see if you are overspending (spending>income) or if you are underspending (spending<income). If you figure out that you are overspending, then you need to decide to either reduce your spending or find an additional source of income to ensure that you are not going over budget.

Decide what is a need and what is a want

Deciding between a need and a want is an extremely important task when it comes to saving money, especially as a college student where the money is often limited. It can be very hard to decide between the two, especially when something like the new iPhone comes out or one of your friends asks you to go out to eat. However, figuring out what is a need or a want is the key to spending money wisely and sticking to your budget.

What are examples of Needs?

  • Housing, Mortgage Payments, and Utilities
  • Loan Payments
  • University Fees
  • Transportation
  • Food (Groceries)

What are examples of Wants?

  • Sources of Entertainment
  • Memberships
  • Brand New Clothes
  • Dining Out/Drinking at the bars
  • New Electronics

The needs and wants may differ between people depending on certain aspects of their life. While cutting out wants is important to maintaining a successful budget, it does not mean that you should cut out all the wants completely. One thing that is recommended when it comes to keeping track of needs and wants is to use the 50/30/20 rule. This means that 50% of your income should be devoted to paying for needs, 30% of your income can go to buying your wants, and the last 20% should be added to your savings.

Plug the leaks in your spending

Small spendings can add up and end up having a huge impact on the success of your budget and can often lead to you thinking, “where did all of my money go.” Stopping these leaks in your spending will ensure that you meet the goals that you set in your budget and that you are spending your money wisely.

Some of the ways to plug these spending leaks include

  • Carry around a reusable water bottle to cut out needless spending on things to drink
  • When going shopping, make a list and stick to it—no impulse buying.
  • Carry cash instead of credit cards to ensure that you are only spending what you can afford
  • Get rid of subscriptions that you don’t use anymore or are just unnecessary.
  • Pack snacks from home to avoid higher prices at vending machines or gas stations
  • Use subscriptions to streaming services such as Netflix or Hulu instead of paying for cable.

Limiting the amount of impulse buying and needless spending is going to help you stick to your budget and meet your goals. It will also allow you to have a better understanding of where your money is going and not leave you with that “where did all that money go” feeling. From plugging these leaks, you are going to end up spending less money and be able to save more.

  • Financial Wellness

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10 Tips to Spend Money Wisely

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W e all want to be wise with our money, right? Sounds good in theory, but how do you actually put it into practice? Let’s take action today. These quick, little improvements can have a big impact over time.

I’ve used better spending habits to help me go from a zero net worth to having over a million saved. Let’s improve your spending today with these ten tips on how to spend money wisely:

1. Make a list of what you value.

The best way to spend more wisely is to align your spending with your values .

Are you even aware of your personal values?

Take a moment to write down the things that are most important to you in life. Is it security for your family? Is it success in business? Is it helping others?

Like me ( see my values ), you likely have a combination of values.

Write these values down and then ask yourself this question: “am I spending my money on things I value?”

Then, ask “am I spending my money on things that aren’t in my value system?”

Doing this little exercise will give you some clarity and help to guide you into thinking consciously about your spending.

2. Make a list of things you really enjoy.

Along the same lines as #1, you should be using your money to bring joy to your life. You define what “joy” is. Go ahead and write that down.

What brings you happiness? Identify those things and then ask yourself if you are spending your money in those areas. More importantly, ask yourself why you are spending on things that aren’t on that list.

Bottom line: avoid spending too much money on things that aren’t at the top of your “joy” list.

Related: It’s Okay to Spend Your Money on Things You Really Want

3. Make a list of places, things, or people that cause you to make poor spending choices.

Can you identify the triggers to poor spending in your life?

Think about your spending over the past couple of weeks.

  • When did you make the worst decisions (i.e., spending money you didn’t have, spending on things you don’t value, etc.)?
  • What was the cause of your poor choice?

If you can identify these weak points, then you can begin to live your life in a way that helps to avoid some of these spending hot spots.

“Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like.” –Will Rogers

4. Review your regular spending for things to eliminate.

When was the last time you wrote down your list of monthly bills? Take a moment to do a thorough spending review now.

List out all of your required spending for the month. This includes rent or mortgage, insurance, debt payments, utilities, services, etc.

Is there anything on that list that you don’t need or want?

It sounds absurd to ask such a question. However, I’ll be the first to admit that in the past, there were things on my list of monthly expenses that I didn’t need or want anymore.

Odds are you have one or two yourself. If you find something to eliminate, do it. There are several negotiation apps can help you identify expenses you may be able to eliminate.

5. Review your regular spending to identify things to reduce.

Next, take a second look at that list of monthly bills and see if there is a way to reduce the cost of any of them.

  • Could you call the provider and ask for a better rate?
  • Could you call a competing provider to see if you can reduce your rates by switching?

If it’s a debt, could you do a balance transfer or consolidation that would help you reduce your rates and eliminate debt more quickly?

6. Create a budget.

On a basic level, a budget is simply a plan for your money. If you know your expected income next month, write that number down. Then start applying that money to different things.

Start with taxes (if it isn’t already taken out), giving, and savings. Then move to basic necessities: housing, food, insurance, utilities, and transportation. Finally, apply the rest of your income to other things you need or want.

Open up an account with an online budgeting tool like Mint.com to streamline this process.

7. Start writing down each purchase you make.

Tracking brings awareness to any situation. Use your iPhone or another device to take spending notes throughout the day. There are Apps for that I’m sure.

Or simply carry around an old-school pad and pen to jot down your spending. Do this for a week and see if your spending improves.

Related: Use These Psychological Tricks to Spend Money Wisely

8. Switch to only cash.

If you have a severe problem with credit spending, this is the way to go. Some folks swear by this method even if they don’t necessarily have trouble with credit cards.

Like tracking your spending, going to a cash-only system , if only for a week, will bring a heightened consciousness level to your spending.

9. Implement a “sleep on it” rule.

Decide today that for any purchase over X amount, you will “sleep on it.” It could be one night, a week, thirty days, whatever.

Just allow some breathing room between your desire and your decision to buy. Obviously, this gives you time to evaluate the purchase against your values and your budget.

10. Put future spending on a calendar.

Pull out a calendar and look at your upcoming events and life changes. Will spending be necessary? Is so, then make a note of that and start building a list of future spending requirements.

This is somewhat different from a monthly budget because it looks a bit further out. This does two things: (1) it allows you to prepare by saving for the spending requirement, and (2) it allows you time to shop around for the best price and lock in the lowest rates.

Have more tips? Add them to the comments below.

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Philip Taylor is a CPA, writer, entrepreneur, and founder of FinCon. Philip has been quoted and featured in multiple media outlets including The New York Times , The Washington Post , Forbes , Fox Business , and more . Connect with him on Twitter or LinkedIn .

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13 Comments

Sounds very complicated but with determination and right amount of discipline this is surely doable.

These are really great points! The sleep on it rule is really my favorite! It works best together with being aware of your budget!

Interesting story, Janette. Thanks for sharing.

Actually, if you tend to use a debit card (as I do), you don’t need to write down every purchase so much as keep your receipts.

Recently took a trip with only cash (#8). It was a bit scary to carry that much cash. What I found was the amount I spent on the trip was much less than normal. I paid for EVERYTHING in cash- from gas to hotel room to eating out to groceries. Next time I will just put $1000 in an account with a debt card, but I needed to know what it felt like to touch the money We travel to see family four to six times a year (#10). They all live between 1500 and 2000 miles from us. We spend, on an average, $1500 for the two of us on each trip. Now that we are retired, knowing that budget is important and paying in cash is the best way to handle it for me. After this trip I really realized that going on “other travel trips” (#3) are nearly impossible if our priority is to stay where we are and still see our family. We no longer journey to Target or the mall in our spare time (#3).The children, mom and grand baby are all worth it!(#1and 2). Well written numbered list!

Swith to only cash – you mentioned this is good for people who struggle with credit cards, but it’s also great if you struggle with DEBIT cards. We always seem to have enough in our checking account to spend on misc items with our debit card, but that money was allocated towards something else in our budget. Plus research shows that when you “swipe” your card to pay (debit or credit), you spend MORE money on purchases, many times without even remembering how much you actually spent. It’s much harder to part with cash. You can see it and feel it dwindling in your pocket (or envelope) as you spend it, knowing it won’t be replaced until the next budget cycle.

@Jason – Excellent point. I didn’t think about that but yes, long after you’ve stopped tracking you’ll have better awareness in general. @Jon – Some recommend a 30 day rule for larger purchases.

I like cash-only.

#9 is the single best piece of advice I have heard. Sleeping on it has saved me a nice sum of money. Typically, I end up waking up and realizing that I don’t really need to buy it!

I think the 7th rule is the best, because that way you actually think about what you’ve done instead of just forgetting about it. This will create valuable spending habits in the future.

love the “sleep on it rule.” Saved me bunches.

The sleep on it rule has always been a huge money saver for me! Even better is to have to save for it. I’ve always waited to buy big purchases until I’ve had the money and tried to find it online cheaper in the meantime!

At some point, we all need to create a budget to control our spending. This blog is actually helpful helpful to analyse my expenditure and sections where I can control my transactions. Someday, I might want to try the online budgeting tool to ease the process. I will need some dedication to follow these steps, but will surely try my best.

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Wise Spending Habits

This article was written by Karen Slunecka, former SDSU Extension Family Resource Management Field Specialist.

Does your paycheck run out before the end of the month? Do you spend more than you earn? Your wants may possibly be getting in the way of your needs. Priorities will need to be set to help manage money. Almost everyone can find some expenses to cut or reduce.

To make the most of your income, planning is essential. Your spending habits influence your ability to achieve financial security. Spending self-control can be developed by forming wise shopping habits. You have to be aware of your spending habits and learn ways to overcome the bad ones and form new and wiser ones. 

To form wise shopping habits you must:

  • Identify spending leaks. You need to track your spending for a month and find where your money goes. For example, do you purchase a bottle of soda every day form the convenience store or vending machine? If so, you could save money by purchasing a case from a discount store and take one to work each day, or better and healthier would be to take a reusable bottle of water to work each day. 
  • Say no to temptations that give you immediate pleasure in order to reach your long term financial goals. This could also be saying no to impulse buying. Postpone a purchase for 24 hours and see if you still want it. 
  • Determine what your leaks are that create bad spending habits. Is it sales, credit cards, discount stores, cash in your pocket, money in the bank, holidays, or stress. Find your trigger and then try to avoid it. 

Here are a few helpful hints to cut your expenses and help stop spending leaks. Think of your own ways that could save you money. 

  • Make a list and stick to it. Do not browse. Buy what is on your list and leave. 
  • Reduce your exposure to things that tempt you to spend. Avoid stores or the areas in them that cause you to overspend. Find other activities to do with friends if you need to. 
  • Limit the number of trips you make to the store. 
  • Find a substitute for shopping. By controlling your environment, you can encourage desirable behavior. 
  • Do not shop when hungry or depressed. This often leads to overspending. 
  • Before you buy something, ask yourself if you need it, or just want it.
  • Learn to say no. Only buy items that are on your spending priority list, and be sure to comparison shop. 

Make some spending rules to follow. Use a spending plan or budget as a guide. Then do not spend more than you can afford. This will all be a gradual process but with some self-control, goals and a plan, you will soon develop wise spending habits.

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SDSU Extension to host financial workshop Money Talk for Women

February 15, 2024

Money Talk for Women will be online via Zoom from 6:30 to 8 p.m. CST each Tuesday from March 12 to April 9, 2024. Participants will complete assignments independently and meet once a week virtually with the group and facilitator.

Money Talk for Women

SDSU Extension will host Money Talk for Women, a five-week program, March 12 – April 9, 2024, that will empower women to become more financially confident.

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Planning for Retirement

No matter what your age or when you plan to retire, now is the time to begin saving for retirement. Learn. some tips to help you become more financially secure as you prepare for retirement.

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UW Financial Literacy

University of wyoming extension, a wise consumer.

  • Author: Michelle Vigil, University of Wyoming Extension Educator
  • Printable PDF: A Wise Consumer
  • Category: Saving & Investing

Becoming a wise consumer consists of multiple decisions over time, choosing to spend on consumer goods and services. Awareness, research, and action can aid in your quest toward becoming a wiser consumer. Most people (consumers) enjoy getting a good or service that enhances their quality of life in some way. Think of all the consumer goods that are available to us in the United States. The choices can be overwhelming and thrilling at the same time. Beauty products, exercise equipment, vacations, home decor, vehicles, new food items, garden gadgets, pet products and more. It is exciting to me to discover a solution to my problem with an available good or service. The goal is to get the best deal on the items that you buy and have peace with your decisions. A person gets better with practice and will learn where the best deals are at that point in time. It will also depend on where you live and your access to goods and services. Time is also a factor that needs consideration when researching goods and services. I tend to put more time and research into more expensive items such as homes and vehicles, then price watch on smaller items.

Businesses get feedback through customer communication, profits, customer satisfaction, reputation and more. Consumers have the power to build or break a business, casting their economic votes through buying items. Businesses that produce goods and services that meet consumer wants are the most successful. If a good or service is exceptionally positive or negative, I tend to reach out and tell the company. It can help both parties to get their needs met.

Merriam-Webster's definition of wisdom as the: ability to discern inner qualities and relationships or insight, good sense or judgement, a wise attitude, belief, or course of action.

Keep in mind, it is your life journey and how you use your resources is your business. Each person wants a variation of things in life, ultimately it is their decision. Carefully consider your needs and wants before buying anything.

There have been several people I would consider wise consumers. They got their best deal at the time on the good or service that they wanted. Think about something you would like to buy and strategize your plan.

Person #1 got a dealer price on her new truck, over six emails. Before any dealer was contacted, she had conducted her extensive research, asked family and friends about their experience, test drove over 75 vehicles, and purchased her truck in cash.

Couple #2 waited for two years to find and purchase 100 acres of land. Before anyone was contacted, couple wrote a dream list of all the things that they wanted on this land. Many people were consulted before this endeavor. A network of professionals was asked to give hints for this business venture. Their number one mentors are viable farmers. They plan to plant micro-greens and a variety of vegetables to sell them to nearby restaurants.

Person #3 researched on Consumer Reports and got the best deal on her cell phone and plan in her area. She believed she got the best deal for her situation.

Person #4 wanted to go out to dinner at an expensive restaurant. He called ahead to ask about specials, he could save almost half-price by going to lunch. He took his date to lunch instead and they had a satisfying meal and experience.

Person #5 wanted to plant a garden, spending less than $200 for plants, soil, pots, and supplies. She asked her gardening friends for help and they supplied her with several free plants and nearly new pots. She went to her local Extension Office and received free seeds. In addition to the seeds, she got several plant publications to aid her with best practices.

The goal is to get the best deal on the items that you purchase and have peace with your decisions. A wise consumer gets better with practice and learns what works for them when purchasing goods and services.

Money Bliss. Life. Money. Enjoy. This will alter your view of money and your life. Steps to Financial Freedom. Make money. Spend less. Learn to budget.

How to Spend Money Wisely: 12 Hacks To Improve Your Habits

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure  here .

“What’s the first thing that comes to mind when thinking of how you can improve your financial situation?”

Many people would say “spend less money.”

One way to do this is by buying something used. In fact, a study found that Americans buy 10% more new items than they did in 2008 because we have so many promotional offers available. Not only should you be trying to save some money on your purchases, but also cut all kinds of other expenses from your lifestyle and keep them at a minimum.

Usually, people spend more money than they need.

This can lead them to have less money saved or be able to afford the things they want.

However, with a few simple changes in your spending habits, you will be able to make more of what you earn and feel more satisfied.

In today’s world, it is easy to be overwhelmed by the amount of information available on how you should spend your money.

With more and more people struggling with their finances, I would like to share a few hacks that have helped me spend money wisely and simplify my life.

Also, I am going to include some simple money saving tips on how to spend less money! Do not get duped into buying things you did not plan on purchasing or spending more money than you needed to.

Learn how to spend money wisely by following these 10 hacks. Follow the advice to avoid wasting money on unnecessary purchases, improve your financial habits, and stop spending too much.

How to Spend Money Wisely

As you can see shortly, there are many ways to spend money wisely. Whether it be through saving, investing, or taking care of your health; with this article as a guide, you won’t have to worry about your money any longer.

This is meant to inspire people on how they can better manage their finances and live more efficiently, while still being able to get the things that they want.

Spending money wisely is a way of life, but it can be tough to know where exactly you should start.

Luckily for you, we will break down ten hacks for you to follow so that your money does not go to waste.

1. Pay Yourself First

You are probably wondering, why is saving money about how to spend money.

The first thing you should do to spend money wisely is to pay yourself first.

This could be saving for the future with an emergency fund, which can be used in case of emergencies or downturns in your financial situation. This can be done by contributing to a high-interest savings account and saving up to $1,000 or more for emergencies.

Or choose one of our money saving challenges to match your financial goals.

2. Take Care of You

You need to take care of your health, as that will improve the quality and longevity of your life.

Making wise choices on choosing quality food and healthcare may cost more money upfront, but in the long run, it will save you money on huge medical expenses.

You spend your money wisely by taking care of your health. Money spent on a gym membership, healthy food, and other medical expenses can save you even more money in the long run.

Many people love the idea of time freedom for this reason.

3. Invest in Your Future

wise spending essay

One way to spend money wisely is by investing in your future. This might be done through a 401(k) or Roth IRA, which lets you invest pre-tax dollars and then withdraw them tax-free once you retire.

This can be a great way to save on taxes, but the money needs to stay invested for at least five years before you’re able to withdraw it without a penalty.

4. Choose Experiences

We live in a society that prizes material purchases and spending. Remember to prioritize experiences by getting outside. Not just for your health, but also on the mental and emotional levels, as well as the personal and even family levels.

Also, a plethora of benefits to spending money on experiences, not all materialism related.

Try to spend less on electronics and materialistic items that fill your home and more on experiences like travel or going out with friends.

This is a great way to spend time with your family and friends instead of buying things for them.

Related Reading: Overcome Gift Regret: Experience Gift Ideas That Do Not Go To Waste

5. Set Goals

Many of us, regardless of financial status, know that if we want to live on the right path without having our finances stress us out, then there are good habits to be followed.

Think about how much money you want to make in the next five years or ten years and make up how to get there.

Now, you need to line up your spending to make that happen.

Not sure how to set goals? Start here with making smart financial goals .

wise spending essay

The next hack is to make a budget and stick to it, which will help you spend your money wisely by only spending what you have available in each category.

A budgeting strategy helps you develop better financial skills. These strategies are practiced in order to help prevent overspending and create a set spending plan for you.

Create a budget that includes all your expenses and then each time you get paid, put a little bit of your paycheck into each category.

7. Evaluate Your Spending

Oftentimes, we find ourselves buying items that are not necessary and just a waste of money. This hack is to evaluate what you’re spending your money on and think about whether or not you want to continue this habit.

For every purchase ask yourself if the item is worth it and what will happen if you don’t buy it.

By completing a no spend challenge , you will be amazed at the things you find out are not worth spending the money on.

8. Likeminded People

Next, you should try to spend less time with people who are going to make you feel bad about yourself.

This is a hard one but just think of the good things that will happen when you stop hanging out with people who make you feel bad.

If you are constantly around people you need to learn how to not spend money, then you will be battling upstream battle. Look for those who have the same mindset and are determined to spend money wisely.

9. Spend on Quality Over Quantity

The best way to buy quality items is to spend more money on them. Buying cheaper items has its risks, but over time it will lead to dissatisfaction with the product and waste of money.

If possible try to spend money on things that will last a long time and not just stuff like food or rent.

This concept of quality of quantity is not difficult to understand. For example, instead of owning 10 pairs of jeans that you think you need, you spend money on the two pairs of quality jeans that you love.

Because items are so cheap to pick up, it is easy to quickly fill our homes with quantity and excess stuff (plus we are spending more in the process). Instead, spend a little more and buy less of what you truly need or want.

10. Eat at Home

wise spending essay

One way to save money is by cooking more at home and not going out to eat. You can also cut down on the amount of food you purchase, which will help you save a ton of money in the long run.

Instead of buying food that will go bad quickly or ruin your health, buy more expensive food. This way you are spending less money on the product but it is going to last longer and be better for you.

By spending money wisely, you must learn how to spend less money on food.

11. Use Tax-Advantaged Accounts

Specifically, I am talking about FSA or HSA, or dependent care FSA. This is when you set aside money each year for these purposes. Money goes into these accounts tax-free, so you are lowering your taxable income.

On how to spend FSA money, you must have the proper documentation on your plan. The same is true for how to spend HSA money.

The limits change each year on how much you can contribute to each of these plans, but the maximum you can spend tax-free is over $20,000 for a family.

This is a great trick to spend money wisely and lower the amount you owe in taxes. Just make sure to spend the amounts in the FSA each year!

12. Spend on things that add happiness to life

Personally, I have a hard time spending money. Period. This is something I am working on as we progress through our financial journey. Now, I look to spend money on ways that will improve our life or bring smiles to our faces.

Spend on things that add happiness to your life.

For example, if you’re happy with the new shoes you’ve just bought, then it’s worth spending money on them! If you love to travel, spend on travel. If you like reading fiction novels, spend on fiction novels.

Spend your money on things you enjoy and make the most of the disposable income you have.

How to Spend Money to Make Money

Picture of a hand grabbing cash to show how to spend money to make money.

One of the best ways to make money is to give back. However, it takes some money to make money, which is typically frustrating to those who constantly want to make more money per year.

By selling a product or service, you are supplying them with your knowledge, advice, and understanding. Another way is through investments. Investing, while not always profitable, has companies that adhere to companies of all kinds.

One of the best ways to spend money wisely is to invest in ways to make money.

There are plenty of ways to make money and start your own business.

Here is a great book to open you up to the idea of starting your own business and the freedom with money it can bring.

Here are great ways to make money on the side:

  • Sell printables and make passive income!
  • Become a virtual assistant and make your own schedule.
  • Learn to get weekly paychecks when investing in the stock market .
  • Earn money with freelance writing on the side.
  • Walk dogs with Rover and get paid cash.
  • Drive for any of these companies and make money – Instacart , DoorDash , or Postmates .
  • Start a bookkeeping business on your terms.
  • Sell Earn easy money with flipping items Find great success with this Flea Market Flipper training.
  • Have kids? Then, teach them to make money with Flea Market Flippers for Kids .

It is possible to make more money on your business than you make more money in your current job or career.

How to Spend Less Money

Picture of a family putting money into a savings jar with cash they have with learning how to spend less money.

Many of us spend too much on material items that are not actively used. This creates a situation where we have to make more purchases in order to get the same level of happiness.

The first step towards becoming frugal is deciding what you want out of your possessions, and then only buying those things which will provide you with this goal.

Here are 32 easy ways to do that!

  • Shop at Discount Stores: You don’t have to go all out with your shopping if you’re looking for a way to save some money. There are plenty of stores that offer great deals and you can still find some really cute clothes.
  • Find Online Deals : You can find deals online for just about anything. This is a great way to get the deals that you might not know about. There are so many websites out there dedicated to helping you find the best deals and coupons.
  • Save Money on Your Cell Phone Bill: Just because the cell phone companies want to charge an arm and a leg for service doesn’t mean you have to. There are plenty of options out there where you can find great deals on your cell phone bill without having to break the bank.
  • Call and Cancel Unnecessary Services: Do you really need to subscribe to cable? How about getting rid of your gym membership because you know that all the exercise won’t do anything for your weight. The truth is you don’t need a lot of these things that are costing you money. Also, try a free service like Trim or Billshark .
  • Buy Generic Items: Do your shopping at the grocery store and buy generic items instead of brand names for most of your purchases.
  • Buy in Bulk: Buy items like toilet paper, cleaning supplies, and other things in bulk to save on the cost of each individual item. This is more so for families who can buy food in bulk.
  • Start Couponing: This is a great way to save money. I know it’s not the most enticing offer, but if you’re looking to save money then coupons can be your best friend. You can go online and find coupons for items that are on sale at your favorite store or you can get them in the Sunday paper.
  • Use Public Transportation: This is a great way to save on gas and wear and tear on your car.
  • Get Rid of the Car: If you live in an urban area, it might be worth getting rid of the car and using public transportation or just walking instead. Or become a single-car family.
  • Carpooling: One of the biggest hacks that many people are unaware of is carpooling- which can save up to $1,000 per year.
  • Rent Things: Whether it is a video, movie, or power tools to complete a project, renting will save you money.
  • Use Less Electricity: Turning off lights and other electronics when they are not in use can really help!
  • Eat Spaghetti : Eating pasta saves money and reduces your grocery bill.
  • Use the Library: If you like to read, the library might be another alternative to buying books.
  • Borrow Books: Borrowing books from the library or your friends is a great way to read for free!
  • Use Online Promo Codes: Using promo codes or coupon codes on all of your online purchases will make a huge difference. Here is a great place to find promo codes and get money back on your purchases.
  • Eat Out Less Often: Eating out less can save money!
  • Eat Less Meat: Eating less meat will save on your grocery bill! There are so many wonderful delish meals made with beans!
  • Buy Used: If you must buy something but don’t want to spend much, consider buying used versions of the items you need. Buying used products will save money and help the environment.
  • Share with Friends: Sharing your belongings, like clothes or toys, can save you money.
  • Ask for Help: When someone offers to help you do something it’s only polite to take them up on it.
  • Find Used Clothing: Buying clothing used can save you a lot of money and help the environment!
  • Downsize Your Hobby: It’s important to live within your means. If you have an expensive hobby it may be time to scale back on the expense or find a cheaper one.
  • Need vs Want: Try not to spend money on things that are “needed” but not “wanted.”
  • Avoid Impulse Spending: Try to plan before you buy anything- think about what you need, the price of items, and if it is worth buying.
  • Plan Free Activities: Plan outings with friends and family, rather than going to the movies or restaurants alone.
  • Plan For Expensive Times: Give your friends a heads up before you go out on an expensive outing so they know it’s coming. They may be able to help cover the cost or provide a cheaper alternative. This will help everyone’s budget.
  • Do Your Research: Research all of your options before you make any purchase- this will allow you to get the best bang for your buck and find the best deals.
  • Bartering : If you must buy something, but you don’t want to spend much money on it-consider bartering with someone or buying used items instead of new ones (e.g., clothes, furniture).
  • Know-How You Spend Money: Keep a budget to track your spending and be aware of how much money you have left at the end of the day or week so you can plan accordingly.
  • Negotiate on Price: If you plan to buy something, don’t tell the retailer how much money you have until after they give their price- this can help save money and time by eliminating any final price negotiations.
  • Think Before You Spend: Put some thought into your purchases before you make them- this will help you make sure you really want to spend money.

How Much Money Should you Spend?

Picture of a blank paper, pen, and calculator to figure out how much money should you spend.

There is a lot of conflicting information on how much money should be allocated to needs vs. wants, but this takes into account what percentage of take-home pay should be spent on necessities.

Here is the Cents Plan Formula we Use at Money Bliss:

  • 50% to Basic Expenses
  • 20% to Savings
  • 10% to Giving
  • 20% to Fun Spending

So, the average person should spend 50% of their take-home pay towards needs. That means you must spend your money wisely.

Keep a list of what you spend and how much it cost.

You should have some idea of how much money you are able to spend on what. This will help you decide whether it is worth buying a thing or not before purchasing it.

Use the list to see where you can make adjustments, for example spending more time with your family or finding fun things to do with no money .

Ready to Start Spending Money Wisely?

wise spending essay

Spending money wisely can seem complicated at times.

The key to using money wisely is understanding how you spend your cash . Spending tends to happen automatically, which can lead people down the path of overspending and debt if not monitored closely.

The affordability of happiness and satisfaction depends intensely on the money we have.

The activities we could do, and expenses we could cut out, can be often atrocious and insufficient for our expectations.

Extreme dissatisfaction and the whole time earning less than we would desire, we may feel that we need to know how to spend money wisely.

The vital hacks elaborated in this post will help to understand caring for a budget, and changing our habits to spend more wisely.

When spending money wisely, people should be aware of their habits so they can change them in order to save more and spend less on things that do not bring happiness or benefit the person’s life.

If you want to save money, spend it on something that will make your life better or more enjoyable.

Know someone else that needs this, too? Then, please share!!

wise spending essay

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

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Home » Teens

Spending for Teens

Learn how to spend your money wisely to budget, save, and still afford all the fun things you want.

teenage-girl-paying-for-package

Teen life is expensive. There’s shopping with friends, mini-golf with the cute new neighbor (who’s only a friend), and snacks after school. 

Before you know it, it all adds up! And if there’s one thing you know by now is that your parents aren’t made of money. If you had a penny for every time you’ve heard that one, spending wouldn’t be an issue! But it doesn’t have to be.

We’re not saying that it’s all gonna be OK, even if you splurge all your allowance on bubble tea. That’s not how it works. But if you figure out a way to stay organized and creative about how you spend, you’ll be able to stretch your dollars.

We’ll show you some useful tips and share some good ideas on how you can make your money last longer without spending all your Friday nights at home. And if you make smart spending a habit, you could end up pretty wealthy one day. But guess what? You’ll probably still tell your own kids that you’re not made of money.

Why Teens Need to Budget

Most people don’t like the word budget. As soon as they hear it, they cringe. In our book, though, that’s the quickest way to end up broke before the end of the week.

The sooner you learn how to budget your money, the better choices you’ll make in your financial life. Why? Because a budget helps you realize that some things are more important to you than others.

Let’s say your parents go out of town for the weekend and leave you with $100. But you need to make that money last for a few days. You’re probably not gonna run and spend it at the mall, right? That would be silly when you have great clothes in your closet.

A smarter way to spend that money would be on food and transportation. You’d probably also want to set some aside in case of an emergency.

That’s it! You just learned how to budget. It’s all about deciding what matters most to you and how much you want to spend on those things. As you can see, budgeting isn’t that difficult. The tough part, TBH, is sticking to the plan.

How to Develop Smart Spending Habits

The road to financial success can feel long. And there are a lot of detours along the way. But there are also lots of hacks to make it easier. These are a few of our favorite tips to help you learn how to manage your money while you’re still young.

Set Meaningful Goals

The most important part of budgeting is figuring out what’s important to you. Once you’ve decided what matters most, it’s easy to choose how much you’ll spend on things.

For example, if you want to buy a car by the time you’re 16 (and your parents are OK with that), you need to start saving. So, next time your friend wants to hit the bowling alley, you may decide to pass. It’s not that you don’t wanna hang. It’s that those $50 could get you that much closer to your new wheels.

Make Compromises

Having a budget doesn’t mean that you’ll pass on all the fun. It just means that you have to get creative. 

Instead of meeting your friends at the pizza shop and then hitting the movie theater, you might wanna invite them over to your place. You can grab some frozen pizzas at the grocery store and stream a movie on Netflix. It’s just as fun and way cheaper.

Reward Yourself

It might seem contradictory, but focusing too much on your budget can also backfire. At times, it can start to feel like a chore. And nobody likes that feeling.

To keep yourself motivated, try rewarding yourself now and then. You can even plan ahead of time and work it into your budget, so you have something to look forward to. Need some ideas on how to treat yourself without breaking the bank? Check these out:

  • Have a picnic at the park. Get some yummy snacks and meet up with your friends for some fun lawn games.
  • Buy yourself a special treat. Decide how much you want to spend ahead of time and challenge yourself to find something awesome without going over budget.
  • Get a disposable camera and have a photo shoot with your pals.
  • Hit the thrift store and find some cool vintage records to play at home.
  • Get a new phone case. It’s a great way to feel like you have a new phone, for a fraction of the cost.

Experiment with Different Budgeting Methods

The great thing about being a teen is that you still don’t have many financial obligations. This freedom means that you can try different budgeting techniques and find the one that works for you. Once you’ve found a method that inspires you, it’s easier to feel excited about budgeting.

Some of the most popular budgeting systems include:

  • Pay Yourself First : If you have a clear savings goal, this is a good one for you. It literally means you put money in your savings account before anything else. Then, you decide how you’ll spend the rest of your money.
  • Zero-Based Budgeting : This one’s best for big spenders. If you plan how you’ll use every dollar in your account, you’ll be less tempted to spend on unimportant things. The great thing about this one is that you can include anything in your budget. As long as you plan ahead of time.
  • 50/30/20 Rule : This strategy breaks your money up by percentages. The rule is that 50% of your income should cover your needs, 30% is for your wants, and 20% is for savings. Stick to the percentages and you’ll manage your money wisely.

This tip isn’t an excuse to spend more time on your phone. It’s using technology to keep track of your spending habits. There are lots of budgeting apps out there that help you do this.

Once you’ve monitored your spending for a couple of months, you can better understand where you’re slacking and where you’re doing well. This monitoring helps you adjust your budget and keep a close eye on the places where you need more discipline.

When you know how hard it is to earn money, you immediately become smarter about how you spend it. And these days, there are tons of ways for teens to make money .

With your parents’ permission, you can look for a summer or a part-time job near home. Many businesses hire teenagers and are willing to work around your schedule.

If that’s not an option, you can also find gigs or start your own business. Take a look at these ideas:

  • Sell crafts or used clothes online
  • Manage the social media account for a local business
  • Babysit your younger family members
  • Referee kids’ sports leagues
  • Mow your neighbor’s lawn

The Role Your Parents Play in Spending Your Own Money

If you have questions about how to spend your money, you can always ask your parents. They may be able to help out or point you in the right direction. But, at the end of the day, you’re the one who’s responsible for your money.

The great news is that everybody messes up sometimes — even adults. If you blow your budget in one day, you have to learn from your mistakes. It’s part of learning how to spend responsibly.

Spending Lingo

Learning some basic terms will help you in your financial journey. These are some important words to understand if you want to get good at budgeting and smart about spending:

  • Fixed Expenses : These are costs that don’t change from one month to the next. For example, your car payment or rent.
  • Variable Expenses : Costs that aren’t always the same. Like your gas or your groceries.
  • Opportunity Cost : What you give up when you choose something else. Buying something is always a trade off, because you could’ve used the money for something else. That next best choice is your opportunity cost.
  • Financial Planning : Creating a plan for how you’ll spend and invest your money.

Best Books About Spending for Teens

Staying on top of your money is a great habit. With these books in your home library, you’ll learn more tips and become better at managing your money. If you want more book recommendations, check out our complete list of money books for teens .

Most Entertaining

The author of I Want More Pizza understands that one slice is never enough! In this easy-to-read book, you’ll get great lessons on how to budget your money and a solid understanding of how money works.

Not Just For Girls

Clever Girl Finance is more than just a book. It’s a whole platform that includes an excellent Insta account and fun TikTok videos packed with practical advice to manage your money and grow your wealth.

Comprehensive Money Guide

Go beyond budgeting basics with Smart Spending: The Teen’s Guide to Cash, Credit, and Life’s Costs . As the title suggests, it covers more than just managing money. This handy guide also talks about credit and what it costs to live life as an adult.

Learning how to manage your money now can save you many headaches as an adult. You should feel pretty proud of yourself for wanting to make good decisions and spend your money wisely. If you keep up the good habits, this could be the start of an extraordinary financial journey!

Related Reading

  • How to spend less money as a teenager
  • How to set a reasonable clothing budget for teens
  • Saving money for teenagers
  • Budgeting money for teenagers
  • Managing money for teenagers

wise spending essay

TOEFL® Resources by Michael Goodine

Sample toefl essay – spending money, the question.

Some people like to spend their money as soon as they earn it, while others think it is better to save their money for some time in the future. Which do you prefer? Use specific reasons and examples to support your opinion. Do not use memorized examples.

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The Sample Essay

           Money concerns are a major cause of stress and anxiety in the modern world. In my opinion, it is a really wise idea to save money for the future.  I feel this way for two main reasons, which I will explore in the following essay.

           To begin with, older people are able to make better financial decisions than youngsters due to their experience and maturity.  Young people, who have very little worldliness, are prone to spending their money on products that are mostly useless and which they quickly tire of.  Older people, on the other hand, know which purchases will result in long-term happiness and satisfaction. My own experience is a compelling example of this.  When I was young, I spent a tremendous amount of money on video games and comic books which I enjoyed only for a short time. Later, when I enrolled in university, I did not have enough savings to pay for my tuition, and was forced to take out a significant number of student loans.  Even today, several years after graduation, I regret not saving much money as a teenager. These days I am a lot more conservative when it comes to spending, and carefully consider all of my future expenses.

           Secondly, life is full of unexpected emergencies which can cause a lot of anxiety if we do not have a lot of money saved up.  According to reports in the media, more than seventy-five percent of all bankruptcies in my country are the result of medical bills. I am totally aware that it is humiliating to lose our financial independence in this way.  For example, last year my uncle suffered a major heart attack which required him to undergo very expensive cardiac surgery. He did not have enough money to pay for this procedure, so he had to ask his elderly parents for a loan.  They were able to help him because they had resisted the urge to spend and saved money through their entire lives. He felt extremely embarrassed about begging his parents for assistance, especially as he could have avoided the situation by emulating their frugal behavior.

           In conclusion, I believe that it is better to save money for the future rather than spend it right away.  I feel this way because we gain the ability to make better financial decisions as we mature, and because saving money helps us avoid the humiliating effects of unexpected financial emergencies. (405 words)

This is a sample TOEFL paired choice essay written by a native speaker.  It follows our TOEFL writing templates for independent essays.  If you find it useful, please remember that we have many more sample essays  for you to read!

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How to Spend Money Wisely

Posted on October 28, 2021 in Money

There are many ways how to spend money wisely. You can be smart about how much you give away, and when you do so you can also make smart choices about what to buy, and where you go. When you do all these things, you not only save a lot of money, but you also have better experiences with your life.

Table of contents

1. know how much you have to spend, 2. spend your money on things that will benefit you in the long-term, 3. spend your money on necessities first, 4. spend money doing good deeds and for charity, 5. resist the urge to spend money on unnecessary goods & services, 6. prioritize spending money on things you truly value, conclusion on how to spend money wisely.

The first thing that needs to be understood is that we all need money to survive. It’s a part of our lives, whether we like it or not. But knowing how to spend your money and earnings is still a work in progress. Below we cover the top 6 ways how you can spend money wisely to show you the importance of careful money management.

How Can You Spend Your Earnings Wisely?

It is advisable to only spend money on the things you need and allocate a part for pleasure such as food and entertainment. With this method, you will be able to save more money over time. Furthermore, when budgeting your money avoid allocating too much to one thing that might end up not worth it. By learning how and when to spend money wisely, you will be able to save more in the long run.

First of all, when it comes to how to spend money wisely, knowing how much you have to spend is the most important detail here. There are many things that people could buy with 100$ or more, but then there are also things that only costs 5$. That’s just one detail that needs to be understood before you start spending money.

The next thing that you can do is to make sure that you buy things that are worth your money. You should only spend on the things that benefit you, or help you to earn more. Sometimes people end up buying stuff for several hundred dollars, but then never use these items again. These items would have been bought for much cheaper, but if the person spent 200$ on them, then that’s just a huge loss of money.

The next thing to think about is what you’re buying. Sometimes people spend their money on things that they think will bring them happiness in life. But instead, all it does is drag them down and make them feel worse than before. That’s why it is important to spend money wisely and be smart about what you buy, and where. Be sure to always cover your basic needs first , then focus on savings accounts, and then you can start budgeting for entertainment and things that you wanted to have.

You can also spend your money wisely on good deeds for others. Sometimes spending money on yourself becomes too easy. As a result, you start feeling miserable with life because you’re just motivated by your own personal interests all the time. If you only take the time to think about others, and what you can do for them, then you’ll see that doing good deeds is a lot more rewarding than the other things.

People should also make sure that they don’t spend money on unnecessary things. Sometimes people get caught up in the moment and end up buying stuff they don’t need. That’s why money management is key, and it is important to always be prepared before going shopping because you might not know when an opportunity to buy this or that comes along.

The last thing you can do is to know when and where to spend your money wisely. For example, you could go to the cinema with a friend, or take her out for dinner afterward. But if these things aren’t important in your life, then you should avoid them because they will eventually make you feel unhappy and dissatisfied with yourself. Try simpler and cheaper kinds of entertainment like online games or sports. If you’re into sports, you might want to try out your luck and prediction skills on online sports betting. Nowadays, it is easy to find good sites offering fair deals and useful tips. You can go to the internet and search for the best betting companies and just start from there. As long as you do it responsibly, it might even save you some money or even get some if you’re lucky. 

Knowing how and when to spend your money is an important skill that everyone should learn. You may even wish to leverage an all-in-one money app like SmartCredit to help you stay on track. By understanding how to spend your money, you will free up more time and energy for other things in life. This way, not only will you save a lot of cash, but you will also be able to enjoy yourself because there are so many great opportunities out there.

It’s all about understanding your priorities and how much money you need to spend on the things that matter. By mastering this skill, you will be able to live a more enjoyable life because you know exactly what it is that makes you feel better. So why not take a step back and start rethinking how you can improve your budgeting skills and spend your money wisely?

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wise spending essay

How To Manage Your Money Smartly – Be A Wise Spender

Money is scarce and that’s what makes it valuable. For as long as you don’t have a money-bearing tree in your backyard or a magic lamp that produces money when you ask for it, then it is time for you to be careful with your earnings. Otherwise, you risk being like me who wished it rained money at our home.

Just like other successful people, you must make tough choices when it comes to money spending decisions. You must be able to keep your financial goals in mind when you spend money. That is the only way you will start creating a millionaire mindset or even a billionaire. Why not?

Many people depend on a monthly salary to survive. That is the only income available to allocate to all their expenses. Take a look at this pie chart representing Tom’s monthly income, and how she plans to spend it. He has allocated his income guided by his expenditure needs. He has allocated everything and has no pie left.

What does that expenditure mean for tom? It simply indicates that Tom does not have anything left to save at the end of the payday. He has not been able to save part of his income for his goals. Think about how you always allocate your salary. Would you have any slice of the pie allocated to saving for your goals?

That is one of the toughest questions to pose to salary earners because it is never easy to decide the best way to spend money. It is even much more difficult to make sure you have money left for your goals at the end of every month.

In this article, I have put together a few tips that will help you to reduce your expenses and save more to achieve your planned goals. These will also help you to become a wise spender.

Learn to Differentiate Between Needs and Wants

Sometimes you can look at something you bought and wonder how you ended up making such a decision to buy it in the first place. The most probable answer could be that you wanted it and not because you needed it to live.

Spending decisions are always tough to make. You have to analyze an expense to determine whether it is a want or a need. If your monthly bill says it would be smarter to buy an android smartphone, then the idea of buying an expensive iPhone can be postponed or even abandoned.

When you earn money you quickly think about a list of things that you can spend money on especially when you have no spending plan. These may include healthcare, lottery tickets, sports betting, a home theatre sound system, motorbike, makeup, soda, or wine. To be a wise spender, you must differentiate between need and wants.

Wants : The things that are optional. They bring you comfort but are essential and you can even survive without them.

Needs : things you must have to live a decent life.

After you have met the needs, your extra savings should be used to pay back your debts faster, invest in education for your kids, save for emergencies, and save for your goals. One way to save more is by reducing your wants. You may also reduce your needs like using less electricity and wastage of water by closing the taps when you are not using water.

Save Money for Emergencies

Certain events in our lives are abrupt and we must attend to them. For example, when you become ill, you have to go to the hospital. This is what makes saving for emergencies an urgent need for you. Everyone can save even on a small income saving will help you in times of emergencies. It is security for you. When a business opportunity comes, your savings will be useful. It is a key to achieving your goals.

Learn How to Deal with Expectations

Your friends may expect you to buy a new shirt on the market and your parents may want you to throw for them a big party as they celebrate their anniversary. It is also possible that your girlfriend keeps asking you when you will marry her. much as saving is a need, it is always not as easy as it sounds. You may feel that pressure when it comes to spending decisions because your family expects a lot from you.

With so many expectations, you have to make the right spending decisions without disappointing your parents, and friends. The anniversary may not be postponed but you can advise your parents to plan for a smaller event with fewer invites. For your friends who expect you to spend on trendy things, remember your goals are more important than showing off.

More still, for household expenses and family food, you have to deliberately agree on a monthly amount that covers expenses and allows you to save for your goals. You might have to buy a present for your girlfriend by considering less expensive items. It is the thought that counts. With those strategies, you will be able to overcome spending expectations for family and friends.

Behavioral Change

You need to know that when you have an income, you are responsible for making wise spending decisions. Have a very firm stand when it comes to distinguishing between your essential expenses (your needs) and those you can live without (your wants). Always still to the plan before you even withdraw your salary from the bank. You can also reduce your wants and needs as much as you can to save for your goals.

Be Confident and Communicate

Remember that saving is a need. It is one way to ensure that you have security in case of any emergencies or even a business opportunity. Be confident to tell everyone in your family and friends that you started saving for your goals. Saving is the key to achieving the goals you have set in your life.

Start Today

You can start by deliberately writing down four things you should do to be a wise spender like reducing needs, saving for emergencies, communicating with friends about your savings plan, spending less on gifts, etc. you can even print this on the wall either at home or office in a strategic place as a reminder for your commitment.

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Home — Essay Samples — Economics — Budgeting — Your Best Options in Budgeting

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Your Best Options in Budgeting

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Published: Jan 29, 2019

Words: 763 | Pages: 2 | 4 min read

Works Cited

  • Chang, L. (2021). The Ultimate Guide to Budgeting: 5 Steps to Take Control of Your Finances. The Balance. https://www.thebalance.com/how-to-make-a-budget-1289587
  • Davenport, K. (2022). The 50/30/20 Rule for Budgeting. Forbes Advisor. https://www.forbes.com/advisor/personal-finance/50-30-20-rule/
  • Dave Ramsey. (2021). Budgeting. Dave Ramsey.
  • Kobliner, B. (2017). Make Your Kid a Money Genius (Even If You’re Not). Simon & Schuster.
  • NerdWallet. (2021). Budgeting 101. NerdWallet.
  • Robbins, T. (2017). Unshakeable: Your Financial Freedom Playbook. Simon & Schuster.
  • The Simple Dollar. (2021). How to Create a Budget: A Step-by-Step Guide. The Simple Dollar. https://www.thesimpledollar.com/save-money/how-to-create-a-budget/
  • Tiller Money. (2021). How to Create a Budget Spreadsheet in Google Sheets. Tiller Money.
  • Williams, G. (2018). Budgeting: A Practical Guide for Beginners. Amazon Digital Services.

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wise spending essay

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10 Simple Ways To Manage Your Money Better

wise spending essay

Being good with money is about more than just making ends meet. Don't worry that you're not a math whiz; great math skills aren't really necessary - you just need to know basic addition and subtraction.

Life is much easier when you have good financial skills . How you spend your money impacts your credit score and the amount of debt you end up carrying. If you’re struggling with money management issues such a living paycheck to paycheck despite making more than enough money, then here are some tips to improve your financial habits.

When you’re faced with a spending decision, especially a large purchase decision, don’t just assume you can afford something. Confirm that you can actually afford it and that you haven’t already committed those funds to another expense.

That means using your budget and the balance in your checking and savings accounts to decide whether you can afford a purchase. Remember that just because the money is there doesn't mean you can make the purchase. You have also to consider the bills and expenses you'll have to pay before your next payday.

How To Manage Your Money Better

  • Have a budget : Many people don’t budget because they don’t want to go through what they think will be a boring process of listing out expenses, adding up numbers, and making sure everything lines up. If you’re bad with money, you don’t have room for excuses with budgeting. If all it takes to get your spending on track is a few hours working a budget each month, why wouldn’t you do it? Instead of focusing on the process of creating a budget, focus on the value that budgeting will bring to your life.
  • Use the budget: Your budget is useless if you make it then let it collect dust in a folder tucked away in your bookshelf or file cabinet. Refer to it often throughout the month to help guide your spending decisions. Update it as you pay bills and spend on other monthly expenses. At any given time during the month, you should have an idea of how much money you’re able to spend, considering any expenses you have left to pay.
  • Give yourself a limit for unbudgeted spending : A critical part of your budget is the net income or the amount of money left after you subtract your expenses from your income. If you have any money left over, you can use it for fun and entertainment, but only up to a certain amount. You can’t go crazy with this money, especially if it’s not a lot and it has to last the entire month. Before you make any big purchases, make sure it won’t interfere with anything else you have planned.
  • Track your spending: Small purchases here and there add up quickly, and before you know it, you’ve overspent your budget. Start tracking your spending to discover places where you may be unknowingly overspending. Save your receipts and write your purchases in a spending journal, categorizing them so you can identify areas where you have a hard time keeping your spending in check.
  • Don’t commit to any new recurring monthly bills : Just because your income and credit qualify you for a certain loan, doesn’t mean you should take it. Many people naively think the bank wouldn’t approve them for a credit card or loan they can’t afford. The bank only knows your income, as you’ve reported, and the debt obligations included on your credit report , not any other obligations that could prevent you from making your payments on time. It’s up to you to decide whether a monthly payment is affordable based on your income and other monthly obligations.
  • Make sure you’re paying the best prices : You can make the most of your money comparison shopping, ensuring that you’re paying the lowest prices for products and services. Look for discounts, coupons, and cheaper alternatives whenever you can.
  • Save up for big purchases : The ability to delay gratification will go a long way in helping you be better with money. When you put off large purchases, rather than sacrificing more important essentials or putting the purchase on a credit card, you give yourself time to evaluate whether the purchase is necessary and even more time to compare prices. By saving up rather than using credit, you avoid paying interest on the purchase. And if you save rather than skipping bills or obligations, well, you don’t have to deal with the many consequences of missing those bills .
  • Limit your credit card purchases : Credit cards are a bad spender's worst enemy. When you run out of cash, you simply turn to your credit cards without considering whether you can afford to pay the balance. Resist the urge to use your credit cards for purchases you can’t afford, especially on items you don’t really need.
  • Contribute to savings regularly : Depositing money into a savings account each month can help you build healthy financial habits. You can even set it up so the money is automatically transferred from your checking account to your savings account. That way, you don’t have to remember to make the transfer.
  • Being good with money takes practice :​ In the beginning, you may not be used to planning ahead and putting off purchases until you can afford them. The more you make these habits part of your daily life, the easier it is to manage your money, and the better off your finances will be.

Frequently Asked Questions (FAQs)

Why is money management important.

Without money management, personal finances are a bit of a mystery. This can lead to overspending and living paycheck-to-paycheck. Money management can help you have a better handle on your income and spending so you can make decisions that improve your financial status.

How do you improve money management?

You can improve your money management by regularly evaluating what you're doing with money and making changes that make sense for you. For example, if you don't have a budget, you could start by developing one. If you have a budget, you could track your spending and see how it lines up with your budget. Once you have an idea of your income and spending, you could choose to increase your savings, pay off debt, or start investing based on your financial goals.

Consumer Financial Protection Bureau. " Budgeting: How to Create a Budget and Stick With It ."

Consumer.gov. " Making a Budget ."

FiftyThirtyTwenty.com. " Income + Financial Stability in America ."

Consumer Financial Protection Bureau. " Spending Tracker ."

Consumer Financial Protection Bureau. " Bill Calendar: Know What You Owe and When It's Due ."

WSFS Bank. " 5 Ways to Save for a Big Purchase ."

Discover. " Six Tips On How To Stay Out of Debt ."

Consumer Financial Protection Bureau. " Looking for An Easy Way to Save Money? Make It Automatic ."

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Smart Spending Habits for College Students

Smart spending habits are essential for college students, who often face the dual challenge of managing limited funds while exposed to numerous spending temptations. Budgeting is the cornerstone of financial wisdom for students. It involves tracking expenses, setting realistic spending limits, and prioritizing needs over wants. This foundational step not only helps in controlling impulsive spending but also in saving for unforeseen expenses.

For college students, academic success is as crucial as financial management. Utilizing resources like GradesFixer, which offers a plethora of free essay and examples , can significantly aid in this endeavor. This platform is not just a tool for accessing academic content but an educational ally that provides insightful examples across various topics. By leveraging such resources, students can enhance their understanding of different subjects and improve their writing skills without impacting their budget. GradesFixer exemplifies how smart choices extend beyond financial decisions to academic resources, thereby contributing to a well-rounded college experience.

Leveraging Student Discounts and Credit Management

Taking advantage of student discounts and managing credit responsibly are also key aspects of smart spending. Students should seek discounts offered to them in various sectors like retail, tech, and entertainment. Furthermore, understanding credit card terms, avoiding high-interest debt, and maintaining a good credit score are crucial financial skills.

Understanding credit management is crucial for students. Using credit cards responsibly can have benefits, but irresponsible use can lead to significant debt and harm credit scores. It’s essential for students to know their credit card terms, pay their bills on time, and resist the temptation to make impulsive purchases on credit. For more advice on managing credit and being financially wise, the U.S. Department of Education’s Federal Student Aid website offers plenty of helpful information. By learning from these resources, students can make smarter financial choices, leading to a stronger financial future.

Regarding educational materials, there are cost-effective resources available. Websites like GradesFixer, which offer a vast collection of free essay examples and templates, can be invaluable. This platform gives students access to many helpful educational tools for writing and research. It serves as a guide for their schoolwork. These tools help students learn about different subjects and ways of writing, and they are a cheaper option than buying study guides or paying for tutors. Using this platform can save students money while still providing them with quality educational materials.

Building an Emergency Fund and Investing in Experiences

In addition to these strategies, it is vital for college students to establish an emergency fund. An emergency fund is a financial safety net designed to cover unexpected expenses like a sudden trip home, medical emergencies, or unforeseen academic costs. Starting small, such as saving a portion of a part-time job income or setting aside a part of a monthly allowance, can gradually build this fund. This practice instills a habit of saving and prepares students for financial uncertainties, reducing the stress and impact of unplanned expenses.

Investing in experiences, rather than solely in material goods, is a crucial element of smart spending for college students. The college journey encompasses more than just academic pursuits; it is a pivotal phase for personal development and the creation of lasting memories. Allocating funds for activities that foster personal growth and social interaction is essential. This includes joining student clubs, participating in workshops, and engaging in cultural events. Such experiences not only enrich the college experience but also contribute significantly to both personal and professional development, providing lasting advantages that extend far beyond the years spent in academia.

Continuous Financial Education

Finally, it’s crucial for students to continuously educate themselves about financial matters. This can be through reading books on personal finance, following financial news, or even attending seminars and webinars. Knowledge in areas like investment, taxes, and savings strategies can be immensely beneficial. As students near graduation, understanding topics such as student loan repayment, retirement planning, and budgeting for life post-college becomes increasingly important. By equipping themselves with financial knowledge, students can make informed decisions, paving the way for a financially secure future.

With these additional strategies in place, college students can better navigate the complexities of financial management during their academic years. From establishing an emergency fund and investing in experiences to continually educating themselves about finance, these practices form a comprehensive approach to financial wellness. By adopting these habits, students set themselves up not only for a successful college experience but also for a prosperous life ahead.

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How I Spent My Pocket Money (Essay Sample)

Table of Contents

Introduction

If you had your own pocket money, how would you spend it?

This essay focuses on how to spend money, and how to do so wisely. In this piece, we share a person’s experience of being taught to spend money wisely and what he would buy when he was given a regular allowance.

Writing an essay on what you would spend your money on? We can help. Go to EssayBasics.com to learn more about our essay writing services . We can help you express yourself by pairing you with a writer who has some experience in your chosen topic.

How I Spend My Money essay

One of the most exciting events in a young one’s life is when their parents give them an allowance. No matter the amount, an allowance gives us the opportunity to spend on small things that make us happy as a child.

The joy that an allowance brings is more than just the amount itself. It’s really rooted in the experience one gets in choosing how to spend it. First, there’s the anticipation of receiving an allowance. Next, there’s the excitement of thinking about all the things you’ve been wanting to get for yourself. Third, there’s the delight of actually receiving the allowance. Finally, there’s the sheer thrill of choosing what to buy and taking it home.

How and when an allowance is given, and how much is gifted to the child, depends on the guardians’ principles. There are those who provide an allowance for children to buy basic needs. But there are some who might give a little extra to give the child an opportunity to learn how to handle money well.

It must be said that not all children are privileged to have an allowance to spend on themselves. If they come from a poor family, the guardians may not have any extra finances to give. They may save up for this just once in a while.

Woman Giving 10 Dollars to a Girl

I am very blessed that my parents gave me an allowance on a regular basis. My allowance has really taught me financial stewardship at a very young age. They also allowed me to make decisions regarding my finances, even if I made mistakes.

Saving Money at a Young Age

While my allowance isn’t a fixed amount, I have since learned that the first thing I should do is set aside a portion of it for savings. I get a third of whatever amount I get and earmark it for saving.

Copper-colored Coin Lot

To make sure that I won’t be tempted to use it, my mom helped me open a bank account where I deposit the money. They opened a time deposit account, which means I cannot just withdraw from it anytime. Whenever I hesitated to go to the bank, my dad would remind me that my small deposits would turn into one big bulk of cash that could someday be used for a rainy day, or for strategic investments.

How I Spend Money with Whatever is Left

With what’s left of my allowance, I usually buy books. These are mainly documentary magazines, which I read during my leisure time. It is actually one of my hobbies. I have made it a personal tradition to always purchase a documentary magazine each time I get my regular allowance. I particularly enjoy news magazines and feature magazines. I am a lover of general knowledge. I love knowing about everything, how and why things are the way they are – whether about nature, politics, science, or geography. It is always a first on my list of hobbies.

The other bit of my regular allowance goes towards the purchase of snacks. I love yogurt and ice cream. The refrigerator at home always has a shelf specifically reserved for my yogurts.

The remainder of my allowance goes towards others. These include my family and friends. I try to buy them something nice as a way of thanking them for taking good care of me.

I also go out of the way to purchase some gifts for my siblings as well as my parents. I want to gift them with simple things, even if they were the ones who gave me my allowance. Doing this for them gives me so much satisfaction since I love making them happy. After all, what is life without happy family and friends?

Regular allowances taught me how to make wise spending decisions. I know how to handle and spend my cash, whatever amount it might be. Therefore, I am confident that when I start handling larger amounts of money in the future, I won’t be as overwhelmed. I will make it a point to remember the financial lessons I’ve learned as a child. I hope to also be able to teach others who to use their money wisely.

Short Essay About What You Would Spend Your Money On

Did you grow up being taught about the value of saving money? If you were like me, your mom and dad probably gave you a regular allowance. They also probably gave you free rein to use your money in whatever way.

Growing up, I deposited regular amounts into my savings account the moment my allowance was handed to me. I did not want to be tempted to splurge on all the food I was craving for while holding all of my money. Personally, apart from fast food, I enjoyed treating myself to books. In fact, I made it a regular tradition to purchase a book every time I got my allowance.

I remember being taught how to make a personal budget out of my allowance. Exactly how much money was given to me didn’t matter as much as the main principle they passed on: save money. They didn’t care if I used the rest of my allowance on junk food or other types of impulse buying. All that mattered to them was whether or not I set aside a portion to put in a savings account. And so I did.

How To Write An Essay About Money

There are so many ways to write a piece about finances. It depends on the lens you are viewing the topic from. Are you an adult looking back at your childhood and remembering important lessons learned? Are you a financial expert looking to give some advice on how to maximize your cash? Are you a student wanting to teach people how to set aside an amount in case of an emergency? Are you a parent who discovered creative hacks in your finances to make ends meet? Find your angle and work it.

How To Spend Money Wisely As A Teenager

When you are young and still living under your guardians’ roof, thinking about contingencies or other things you may be needing to buy before your next allowance comes may not come naturally to you. It is so important to learn how to handle your personal finances even at that age because that sets the direction of your spending in the future. When you start getting a monthly income, the weight of the responsibility is even greater as you start to live independently. Even as a teenager, learn to set financial goals and think of the long game. Even if you have to put money inside a piggy bank to avoid temptation, do so. Track your expenses and make adjustments according to your level of contentment. Learn the art of investing from an expert. Finally, don’t shop ’till you drop. It’s a trap.

wise spending essay

ClassRoomNotes

Week 6 – start 19th feb, 2024 and end 23th feb, 2024.

Second Term Lessons Notes   |  Second Term Exam Questions   |  How I spent my Last Holiday   |  2023/2024 School Academic Calendar   |  Join Us @ 080WhatsApp | 080TeleGram  and WhatsApp Channel

How to Spend Money Wisely | Advantages of Wise Spending and Buying Primary 6 (Basic 6) – Home Economics

Home economics .

PREVOCATIONAL STUDIES  FIRST TERM   WEEK 2 PRIMARY 6 THEME – CONSUMER EDUCATION  PREVIOUS LESSON –  Source of Income &#8211; Meaning and Source | Meaning and Examples Needs and Wants Primary 6 (Basic 6) &#8211; Home Economics

TOPIC: HOW TO SPEND MONEY WISELY

Performance objectives.

By the end of the lesson, most of the pupils should have attained the following objectives – 1. explain the meaning of wise buying and spending; 2. identify items of needs and wants; 3. state the advantages and ways of spending wisely.

ENTRY BEHAVIOR

The pupils know where to buy goods at cheaper rate.

INSTRUCTIONAL MATERIALS

The teacher will teach the lesson with the aid of diagram of sources of family income.

METHOD OF TEACHING

Choose a suitable and appropriate methods for the lessons. Note – Irrespective of choosing methods of teaching, always introduce an activities that will arouse pupil’s interest or lead them to the lessons. 

REFERENCE MATERIALS

Scheme of Work 9 – Years Basic Education Curriculum Course Book All Relevant Material Online Information

CONTENT OF THE LESSON

Lesson 1 – introduction.

Wise buying is knowing exactly what to buy, when and where to buy at the right price without any regret in the future. Wise spending is the decision we make on what we spend money on.

ADVANTAGES OF WISE SPENDING AND BUYING

1. Save money 2. Save time
3. Increase in savings 4. Enable you to get more goods and services for lesser price 5. Reduce unnecessary buying and spending.

LESSON 2 – HOW/WAYS TO SPEND MONEY WISELY

1. Listing items for purchase, 2. Price comparison, 3. Products comparison, 4. Bulk buying, 5. Shop alone, 6. Learn how to negotiate, 7. Don’t fool by advertisements, 8. Avoid online shopping except for price comparison.

PRESENTATION

To deliver the lesson, the teacher adopts the following steps: 1. To introduce the lesson, the teacher revises the previous lesson. Based on this, he/she asks the pupils some questions; 2. Ask pupils where to buy goods at cheaper rate. 3. Ask pupils, why should we buy there.
Pupil’s Activities – State reasons why we should buy goods at wholesale shops. 4. Introduces the lesson and explain the meaning of wise spending. 5. Leads to state the ways of wise spending. Pupil’s Activities – State some of the ways of spending money wisely. 6. Excursion, Role – play in wise shopping in class by comparing prices. Pupil’s Activities – Participate actively in the market prices. 7. Summarizes the lesson on the board. Pupil’s Activities – Copy the lesson as instructed.
To conclude the lesson for the week, the teacher revises the entire lesson and links it to the following week’s lesson.

NEXT LESSON 

Lesson evaluation.

Ask pupils to: 1. explain the meaning of wise spending.
2. make a list of four market items to buy with cost estimates. 3. state three advantages of comparing prices.

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StarTribune

Aim your angst elsewhere, twins fans: payroll pouting is played out..

La Velle E. Neal III

What a surprise. A Pohlad has raised the ire of the fan base by revealing that the Twins will not make a late splash in free agency.

In the most recent case, Executive Chair Joe Pohlad said during a WCCO radio interview Wednesday that it is unlikely that the club would sign one of the top remaining free agents . Doing so would cost anywhere from $15 million to $25 million a year. Lefthander Blake Snell, for instance, reportedly turned down six years and $150 million from the Yankees. Could the Twins land Snell or lefty Jordan Montgomery for a one-year deal at $25 million to $27 million or so, then let that player reenter free agency? I guess we will never know.

The Twins head into a 2024 season in which they are the favorites to win the AL Central. Their offense has upside. The bullpen should be a strength. They are a contender despite the departure of Sonny Gray.

Fans want Pohlad to capitalize on momentum, push in more chips and buy more players. But here's the reality: The Twins warned us all a payroll reduction was coming. Pohlad's latest comments were more of the same. To this latest wave of fan angst, I'll say: Get over it.

The hints that this would be an offseason of fan discontent came late in the 2023 season. I spoke with a Twins official at the time who told me the team hit "the upper limits" of payroll once Carlos Correa re-signed earlier in the year. That was an "uh-oh" moment.

The Twins were well on their way to a division title at the time, with a club-record $156 million payroll. If anything, I felt the success of 2023 would encourage them to add, not subtract. Especially after winning a postseason series for the first time since 2002. I wrote after the season that they should maintain the momentum they built and add to the roster. But it's easy to spend other people's money. Following the end of the season, the Twins let it be known that there was going to be some belt-tightening.

The Twins weren't the only team doing this. Roughly half of the teams in baseball have not added to their 2023 payroll. Part of it stems from the bankruptcy proceedings of Diamond Sports Group, which owns the Bally Sports networks. That wasn't resolved until recent weeks, but teams operated under the assumption that their television revenues would decrease in 2024. The Twins, who received about $54 million in television revenue last season, prepared for a $20 million to $30 million drop.

We don't know the details of what their 2024 television deal contains. I encourage the Twins to let this information slip out somehow since it was a big reason why they pulled back on payroll following a promising season.

We obsess over payroll in baseball unlike in any other sport. Twins fans, in particular. And some of it comes from frustration over the Pohlad family that goes back to the stadium wars of the mid-to-late 1990s and the contraction threat of 2001. I get that. But there were seven teams, including the Cubs and White Sox of the central divisions, who spent more on payroll than the Twins in 2023 and didn't reach the postseason. Spending on top players can improve teams and energize fan bases. It still comes down to making the right baseball decisions. If the Twins decline to spend $25 million on a free agent but invest a fraction of that to maintain a top farm system, it's a worthy trade-off. Stop obsessing over payroll.

The Twins have built a promising lineup based on scouting, drafting and development. They will have just two outsiders in their Opening Day lineup: Correa and Carlos Santana. A chunk of last season's rotation, which included Pablo López, Joe Ryan, Sonny Gray and Kenta Maeda, was acquired by dealing players either drafted or signed by the Twins. Prospects also are tradable commodities.

Pohlad on Wednesday didn't say they couldn't trade for more help. Kyle Farmer is good enough to start for most teams. I also believe the Twins realize that their infield of the future includes Brooks Lee at second, and they could make room for that to happen sooner rather than later. And Derek Falvey, the president of baseball operations, doesn't like to sit idle at the trade deadline. There's more than one way to improve a team.

This is a good team. It should be a good season. This despite the Pohlads not landing a Blake Snell. Stop obsessing over payroll.

La Velle E. Neal III is a sports columnist for the Star Tribune who previously covered the Twins for more than 20 years.

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Wise Personal Account Review: Pros And Cons

The journalists on the editorial team at Forbes Advisor Australia base their research and opinions on objective, independent information-gathering.

When covering investment and personal finance stories, we aim to inform our readers rather than recommend specific financial product or asset classes. While we may highlight certain positives of a financial product or asset class, there is no guarantee that readers will benefit from the product or investment approach and may, in fact, make a loss if they acquire the product or adopt the approach.

To the extent any recommendations or statements of opinion or fact made in a story may constitute financial advice, they constitute general information and not personal financial advice in any form. As such, any recommendations or statements do not take into account the financial circumstances, investment objectives, tax implications, or any specific requirements of readers.

Readers of our stories should not act on any recommendation without first taking appropriate steps to verify the information in the stories consulting their independent financial adviser in order to ascertain whether the recommendation (if any) is appropriate, having regard to their investment objectives, financial situation and particular needs. Providing access to our stories should not be construed as investment advice or a solicitation to buy or sell any security or product, or to engage in or refrain from engaging in any transaction by Forbes Advisor Australia. In comparing various financial products and services, we are unable to compare every provider in the market so our rankings do not constitute a comprehensive review of a particular sector. While we do go to great lengths to ensure our ranking criteria matches the concerns of consumers, we cannot guarantee that every relevant feature of a financial product will be reviewed. We make every effort to provide accurate and up-to-date information. However, Forbes Advisor Australia cannot guarantee the accuracy, completeness or timeliness of this website. Forbes Advisor Australia accepts no responsibility to update any person regarding any inaccuracy, omission or change in information in our stories or any other information made available to a person, nor any obligation to furnish the person with any further information.

Updated: Feb 21, 2024, 4:30pm

Reviewed By

Wise, formerly known as TransferWise, is a UK-based financial services company specialising in foreign exchange. It was founded in 2011 and, as of 2024, provides its global users with three main products—the Wise Personal Account (also known as the Wise Account), Wise Business, and Wise Platform.

“We have three products and the target market for each varies slightly, but at our core we’re working to build the best way for both people and businesses, big and small, to move and manage money around the world,” Tristan Dakin, ANZ country manager at Wise tells Forbes Advisor Australia.

For the purpose of this review, Forbes Advisor Australia is solely analysing the Wise Personal Account.

  • 40+ currencies to spend in
  • Local account details in nine currencies
  • No subscription fees
  • Fees for conversions, transfers and sending money
  • Limited ATM transactions per month
  • No cash deposits

Wise

Table of Contents

What is wise, how much does a wise account cost, features of a wise personal account.

When Australians speak of Wise, they are commonly talking about the Wise Account and associated Wise Debit Card, as this is the company’s most popular offering. In fact, there are 16 million users worldwide.

As Dakin explains, the Wise Account and its attached debit card allows people to transact in more than 40 currencies within the one account and “spend like a local wherever they are, in the local currency”.

It also works in a similar manner to a more traditional bank account, allowing account holders to set up direct debits, access virtual cards to connect to Apple and Google Pay, and earn interest on their balances.

A key feature of the account is the ability to register local account details in nine different currencies, meaning you can get paid and send money in a different currency than your place of residence, if need be.

Related: Wise Vs Revolut (2024 Comparison)

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Opening a Wise account is free, as the company does not charge for a subscription. However, ordering your first card costs $10 with standard delivery included (replacement cards from thereon cost $6). There are also no monthly maintenance fees, which means the only fees you can expect are from ATM withdrawals, conversion fees, the aforementioned replacement card costs, and fees to add money to your account depending on how you choose to do so.

You can withdraw up to $350 AUD, twice a month, for free. Any amount above this figure, you will be charged a fee of $1.50 for any additional withdrawals, along with 1.75% of the transaction.

In terms of fees, Wise charges different rates depending on the currency. However, they all start at 0.42% of the transaction. For example, if you want to convert $1000 AUD to USD , you would be charged a fee of $4.68. The same fee would apply if you wanted to convert $1000 AUD to GBP .  However, transferring $1000 AUD into Euros would cost slightly less at $4.58.

These fees differ again when sending money, although they all begin at 0.42% of the transaction (excluding a conversion fee). Sending $1000 AUD to a UK bank account and transferring the Australian dollars to pounds would cost $5.18 AUD; while sending $1000 AUD to an Australian bank account costs only 0.57 cents.

Lastly, when adding money to your Wise account, you may also be charged a fee depending on how you choose to add the money. Wise offers users five options to add money to your account, some which will be fee-free and some of which won’t. They also differ in the time it takes to add money to your account.

To add money to your Wise account, you can choose to pay via:

  • Manual bank transfer;
  • Apple or Google Pay;
  • Debit card; or
  • Credit card.

Using the same $1000 AUD example, adding this figure to your account would cost:

  • $0 when using a manual bank transfer, which should take approximately 3-6 hours on a weekday;
  • $3.70 in fees when using a debit card from your phone’s wallet, and $13.80 if using a credit card. This will arrive in a matter of seconds;
  • $0 when using PayID, which will arrive in a matter of seconds;
  • $3.70 when using a physical debit card, which will also arrive in seconds; and
  • $13.80 if using a physical credit card which, again, will arrive in seconds.

The defining feature of a Wise personal account is the ability to send, hold, receive and convert money into more than 40 currencies, allowing you to spend the local currency across some 150 countries.

This may be ideal for travellers hopping between various nations, those sending money to family or friends abroad or those moving abroad permanently.

In addition, the Wise Debit Card also allows users to open a local bank account in nine countries without having a residential address.

Dakin says this features is designed to help those who, for example, may be moving to a new country and who need time to get set-up.

“This means you can share these account details with anyone to get paid like a local, in the local currency,” Dakin says.

The nine different currencies available to Australian Wise users are:

  • British pound (GBP)
  • The Euro (EUR)
  • New Zealand dollar (NZD)
  • Singapore dollar (SGD)
  • Hungarian forint (HUF)
  • Romanian leu (RON)
  • Turkish lira (TRY).

Even people who do not use Wise can send you money to these account details.

Dakin says the Wise Personal Account is also frequently used by online shoppers who are buying gifts for loved ones abroad, or who have found shopping deals online on a foreign website.

However, despite these advantages, there are still fees to be aware of, as well as the exchange rate when converting currencies. The exchange rate that Wise charges is the mid-market rate, being the midpoint between the buy and sell prices of two currencies at any time. It’s the same as what you see on Google, when you search for a currency conversion rate.

Dakin adds that customers can see exactly how much a transfer is going to cost them before committing, and while they charge a “tiny fee” now they hope to make this feature free in the future.

“In the meantime, customers can see exactly what a transfer is going to cost them in fees and how much their recipient will receive before they hit send,” he says.

wise spending essay

Additionally, Wise offers its customers access to three virtual debit cards within the Wise app, which can also be added to Apple Pay or Google Pay wallets. Virtual cards have different details than the physical Wise card, and can be frozen after each transaction.

“If you think your virtual card has been compromised, you can instantly replace your card details—this means it’s a safe and simple way to spend no matter where you are in the world,” Dakin says.

Virtual cards can also help Wise users manage their expenses, as different transactions can be allocated to each card.

Ultimately, Wise markets itself as “the most international debit card in the world”. Whether it is the right choice for you, will depend on your personal preferences, expectations and spending habits. As with any account or new financial product, it’s best to do your homework, research competitors and see if it suits your needs.

Frequently Asked Questions (FAQs)

Can i use wise as a bank account in australia.

Yes, Wise is not only a card for foreign transactions; it can also be used as a bank account right here in Australia. You will receive Australian bank details, allowing you to send and receive money just as you would from any other bank.

The difference is that Wise also allows you to hold 40 different currencies in your single account, and send money to 160 countries worldwide.

Is Wise safe to use?

Yes, Wise is safe to use. As ANZ Country Manager Tristan Dakin explains, because of the way Wise is licensed, customer funds are protected.

“This means that we look after your money, keep it separate from our own money and keep it available to you whenever you need it,” he says.

“In the unlikely event that something happens to Wise, customer funds remain safe and protected to ensure you can always access money.”

Wise Australia is regulated by the Australian Securities and Investments Commission (ASIC) and holds an Australian Financial Services Licence (AFSL). Wise is also regulated by the Australian Prudential Regulation Authority (APRA) and has a limited authorised deposit-taking institution (ADI) licence as a provider of Purchased Payment Facilities (PPF).

Can I deposit and withdraw cash onto my Wise card?

While you can withdraw cash from your Wise card at an ATM just as you would with any other bank card, you unfortunately do not have the ability to deposit cash onto the card. Instead, to add money to your balance, you will need to do so online: via bank transfer, debit or credit card, or with PayID.

Sophie Venz is an experienced editor and features reporter, and has previously worked in the small business and start-up reporting space. Previously the Associate Editor of SmartCompany site, Sophie has worked closely with finance experts and columnists around Australia and internationally. Sophie grew up on the Gold Coast and now lives in Melbourne.

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The Biggest Supreme Court Case That Nobody Seems to Be Talking About

This is part of  Opening Arguments , Slate’s coverage of the start of the latest Supreme Court term. We’re working to  change the way  the media covers the Supreme Court. Support our work when you join  Slate Plus .

On Monday, the Supreme Court will hear arguments in a pair of cases out of Texas and Florida that could force major social media platforms to carry posts from Donald Trump or others who lie about elections being stolen or obliquely encourage election-related violence. A ruling in favor of these states would turn the First Amendment upside down and create the conditions for undermining American democracy. If there wasn’t so much else swirling around our elections and democracy right now, this case would be commanding everyone’s attention.

Moody v. NetChoice LLC and NetChoice LLC v. Paxton arise out of the actions that Facebook, Twitter (now X), and other social media companies took in removing Trump from their platforms after the attack on the U.S. Capitol on Jan. 6, 2021. Trump had been relentlessly calling the 2020 election results into question despite having no reliable evidence of widespread fraud or irregularities. In an infamous tweet in December 2020, he encouraged his supporters to come to Washington for “wild” protests on Jan. 6, the day that Congress would be counting the states’ Electoral College votes to confirm Joe Biden as the election victor. After Trump and his supporters spoke in speeches on the Ellipse on Jan. 6, a crowd stormed the Capitol. The violent incident left 140 law enforcement officers injured (four later died by suicide) and four protesters dead. After Trump failed to immediately condemn the violence and call for the siege to end, the platforms had enough, determining that Trump had violated their terms of service and needed to be removed.

In response to the removal of Trump and concern over what they call “censorship” of conservatives, Florida and Texas each passed laws that make content moderation difficult if not impossible for major social media companies. The laws differ in some particulars, but both would make it illegal to remove the kinds of content we saw from Trump before he was deplatformed in 2020. A coalition representing the platforms sued, arguing that the laws violated the platforms’ First Amendment rights to decide what content to include or exclude on their platforms. The coalition won their primary arguments in the Florida case but lost in the Texas case, and the Supreme Court is hearing both of them on Monday.

The key First Amendment question is how to treat the platforms when they curate content. The platforms argue that they are private actors just like Slate or the Wall Street Journal, having a constitutional right to include or exclude content as they see fit. It’s a strong argument. In a 1974 case, Miami Herald v. Tornillo , the court held unconstitutional a (different) Florida law that required newspapers to print the reply of someone who had been criticized in the newspaper. The court held that private actors like newspapers have every right under the First Amendment to include or exclude content as they see fit.

The states argue that we should treat social media platforms as “common carriers,” the way we do the phone company. There are laws that forbid the phone company from denying you service because it doesn’t like the messages you might communicate by voice or text. In an amicus brief in the cases that I filed with political scientist Brendan Nyhan and journalism professor Amy Wilentz and co-authored with Nat Bach and his team at Manatt Phelps, we argue that the common carrier argument is a weak one.

As professor Eugene Volokh, one of the originators of the common carrier analogy, explains, what separates entities such as newspapers from entities such as phone companies is whether they produce a “coherent speech product.” Those who do are entitled under the First Amendment to exercise editorial discretion. Social media platforms surely do, however, produce such coherent products. Of course the public reasonably associates a controversial politician’s speech with a platform’s editorial message. People may be attracted to or repulsed by Trump’s speech on a platform, but they will perceive that speech as part of the platform. (In contrast, no one perceives private text messages sent over AT&T’s network as AT&T’s speech.) People know that Truth Social, where Trump commonly posts, is different from a platform where people rarely, if ever, see posts from Trump, or a platform marketed to Democrats organized around criticizing Trump.

It should be no surprise that after Elon Musk took over Twitter and changed its moderation policies to make the platform’s content less trustworthy and more incendiary, users and advertisers reevaluated the platform’s strengths and weaknesses, with many choosing to leave. Content moderation policies shape how the public perceives a platform’s messages. Content moderation decisions—including Musk’s, whether wise or not— are the exercise of editorial discretion. The public then decides which platforms to patronize, value, or devalue.

There’s also a huge irony in seeing people like Volokh or Justice Clarence Thomas express support for the common carrier theory and requiring private companies to carry speech they may disagree with or even find dangerous. In his amicus brief supporting Florida’s appeal, Trump approvingly quoted Volokh: “Recent experience has fostered a widespread and growing concern that behemoth social media platforms … have ‘seriously leverage[d their] economic power into a means of affecting the community’s political life.’ ”

That kind of equalization rationale has been rejected by the libertarians on the court in cases like Citizens United , the case that freed corporations to spend unlimited sums in support of candidates for election to office. There, the court wrote (quoting a 1976 case, Buckley v. Valeo ) that it is “wholly foreign” to the First Amendment to seek to equalize speech, and that the First Amendment can’t do anything to stop those with economic power from translating it into political power.

Now that it is conservatives yelling “censorship” rather than liberals complaining about big corporations seeking to have an outsize influence on whom is elected and on public policy, is the court really going to change its position on whether the government can mandate speech equalization depending on whose ox is being gored?

This case, though, implicates more than just the First Amendment right of platforms to curate content. It may affect the survival of American democracy itself, as the 2020 election demonstrated.

During the campaign and post-election periods, these platforms labeled and fact-checked many of Trump’s false and incendiary statements and limited the sharing of some of his content, but after Trump failed to condemn (and even praised) the Jan. 6 rioters, many major platforms, fearing additional violence fomented by the president, decided to remove or suspend Trump’s social media accounts. The platforms made voluntary decisions about labeling, fact-checking, demoting, and deplatforming content that undermined election integrity, stoked violence, and raised the risk of election subversion and democratic collapse.

In so doing, the platforms participated in the open marketplace of ideas by exercising their sound editorial judgment in a socially responsible way to protect democracy. Even if certain moderation decisions were imperfect in hindsight, the platforms’ efforts were vastly preferable to an alternative in which government fiat deprives platforms of the power to remove even dangerous speech.

We should learn by June if the Supreme Court agrees.

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  • ‘Architecton’ Review: Victor Kossakovsky’s Magnetic Film Essay Reflects On Man’s Relationship With Nature – Berlin Film Festival

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Architecton documentary

In a haunting prolog, we see the ruins of a housing estate in what is presumably war-torn Ukraine (Kossakovsky doesn’t always tell you where his cameras are pointing). A drone soars above the carnage, revealing the extent of the damage to buildings where people once lived. The evidence of their having been there now seems almost pathetic; these spaces seem barely adequate for existence, let alone survival. It’s the ugly, ignominious end of an ugly, ignominious building, but Kossakovsky’s seemingly cryptic tone-poem film is just dangling that idea in front of us as an aperitif.

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The film itself starts with a very strange ritual; an unnamed architect (later revealed to be Michele De Lucchi, another Italian) is building a stone circle in his garden. There is no purpose to this object other than to be a human-free zone: once completed, only De Lucchi’s dog is to be allowed within it.

While all this is going on, Kossakovsky’s roving eye takes us around the world, in a travelogue that shows us the resilience of the old world versus the transience of the modern. It shows the poetics of ruin, but it is a cycle with diminishing returns; the debris of the Romans and Greeks still has a grandeur and majesty that is missing from the shabby detritus of the modern world, as we see in the aftermath of the earthquake that laid waste to Turkey in the summer of last year.

It’s all very gnomic, but Kossakovsky can’t help but blurt his thoughts out in the epilogue, with a thesis that is really very simple: “Why do we build ugly, boring buildings when we know how to make beautiful ones?”

De Lucchi, a wonderfully lugubrious presence, knows this very well, and speaks quite candidly about his own complicity in this increasingly prevalent anti-aesthetic, saying that, as a global entity, we need to think about “what we build that nourishes the planet and what we build that will destroy it… Architecture is a way to think about how we live, how we behave.”

Such a concept isn’t all that new — it’s over 100 years since Le Corbusier declared that “a house is machine for living in” — but Kossakovsky’s fascinating, magnetic film essay does help us to reassess what we’ve lost over the centuries. And, best of all, it isn’t depressing; like Reggio’s film, it is a warning sounded in the good faith of being heard in the nick of time.

Architecton verbalizes something we are all thinking in the modern age of war and climate change: what will we leave behind, and what will it say about us to future generations? We can only pray that they’ll think of us kindly.

Title: Architecton Festival:   Berlin (Competition) Distributor: A24 Sales agent: The Match Factory Director: Victor Kossakovsky Running time:  1 hr 38 min

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