Greetings, and welcome to the thirty-fifth edition of Wallet Wellness in 2024 - your weekly source of practical personal finance tips to elevate your money management skills! 

We hope you had a chance to check out the last edition where we discussed “small” money habits that bring you financial power. In today’s edition, we explore tips on how to decide if something is worth spending your hard-earned money on.

As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week. 

Let’s dive in! 

MONEY254 TIP OF THE WEEK

How To Decide If Something Is Worth Spending Money On 🤔

We all know the feeling — you buy something and later wonder, “Was that really necessary?”
Maybe it was a gadget a friend had, a sale item that seemed too good to pass up or splurged on a fancy item that ended up gathering dust.

We’ve all been there, grappling with buyer’s remorse or, on the flip side, feeling totally satisfied with our purchase. 

With our money tighter than ever, it’s the perfect time to rethink how we decide whether something is worth spending money on. Let’s dive into five simple tips to help you make smarter spending decisions.

1. Define the Purpose (Need or Want?) 🎯

Every purchase has a reason behind it, but understanding whether it’s a need or a want can shape your financial health. A “want” disguised as a “need” may drain your budget and set you back.

• Prioritize Essentials: Is this something that simplifies your daily tasks or just a nice-to-have item that might gather dust? Read More.

• Long-term Impact: Will this item add lasting value or just short-term satisfaction?

• Financial Fit: Can your budget comfortably handle this purchase right now

2. Consider Your Financial Priorities 💸

Your money should always reflect your values and goals. Spending impulsively without considering your bigger picture can derail your financial plans.

• Align with Goals: Does this expense support your long-term financial goals? Read More.

• Weigh Against Priorities: Could the money be better used elsewhere (e.g., saving or debt repayment)?

• Think Long-term: Will this purchase matter to you in six months or a year?

3. Evaluate the Cost-Benefit Ratio ⚖️

For every shilling spent, think about the return. Sometimes an expensive item might offer value, but not every cost matches the benefit.

• Is it Worth the Price?: Will the benefits of this item truly justify its cost?

• Compare Usage: How often will you use it, and will it improve your day-to-day life or just gather dust?

• Opportunity Cost: What are you giving up to afford this—both now and in the future? Read More.

4. Consider Alternatives 🔄

Sometimes the best option isn’t the most expensive one. Exploring alternatives can save money without sacrificing quality.

• Explore Cheaper Options: Can you find a similar product that delivers the same result? Read More.

• Consider Buying Used or Refurbished: Could a secondhand version work just as well?

• DIY Approach: Can you achieve similar results by doing it yourself? Read More.

5. Wait Before Deciding ⏳

Rushing into purchases can lead to buyer’s remorse. Giving yourself time allows you to research and review, leading to more confident decisions. Big purchases especially need time to process the pros and cons. Read More.

• Delay Gratification: Set a cooling-off period, whether it’s a few days for small purchases or even months for bigger ones. Do you still want it? Read More.

• Read Reviews: What do others say about this product’s performance or quality?

With the holiday season and the end of the year approaching, it’s easy to get swept up in spending. But remember, each purchase should align with your long-term goals. It’s your hard-earned money—make it work for you. After all, our money is only as valuable as what we choose to spend it on.

CONCEPT CORNER

Buyer's Remorse

Buyer’s remorse is the sinking feeling you get in your stomach after spending money in a way you shouldn’t have. The lingering feeling of regret and guilt that you can sometimes get after you make a purchase. It can be a big purchase outside your budget or a small impulsive purchase. Read On.

Money & Me

Money, Impulse and Me: A Hair Spa Trip To Remember

…Research shows that behavior, whether positive or negative, reinforces itself when repeated. Saving, just like exercise, may feel like an insurmountable task during the early days, but once it gets to a certain threshold it almost becomes second nature…Read On. 

MONEY254 #MONEYTOK

Want to Tame Bad Spending Habits? Try the 30-Day Rule

Impulse buying, emotional spending getting in the way of your savings or other financial goals? In today’s #MONEYTOK we delve into one of the key tips to curb bad spending habits. Watch the video and read the article to learn more.

@money254hq

What is the 30-Day Rule? #Money254 #moneymanagement #30dayrule #Moneytok #Fyp #Personalfinance #Financetiktok

That's it for the thirty-fifth Wallet Wellness edition of 2024! We hope these financial tips have added some energy to your weekly hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week and watch out for Money Weekly.

Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.

Cheers to your wallet's well-being!

@money254hq

What is the 30-Day Rule? #Money254 #moneymanagement #30dayrule #Moneytok #Fyp #Personalfinance #Financetiktok

Money254 editorial team.