Daily Tips

Where does my money go?

Quite often we do not recognize how much money we daily spend on the small things – goods and services with relatively small unit price. However, if we look closely at our spending patterns, we might find a great potential for saving.

 Top 3 causes of overspending

1. Spontaneous purchases

Spontaneous shopping is the main reason for purchasing unnecessary goods. We all have made spontaneous decisions on buying a bar of chocolate or a magazine while queuing at the counter. We often do shopping to boost our mood, for instance, women tend to make their day by buying a new pair of shoes, while men treat themselves with different gadgets.

2. Single item purchases

Goods and services that are used on daily basis can often be bought in bulk, thus saving us a lot of money and trouble. For instance, if we daily use public transport, buying a monthly pass is a great bargain if compared with single tickets.

3. Shortage of time

Looking for best offers and greatest bargains is time-consuming. In case of pricy purchases, it is advised to plan ahead and allocate sufficient time in order to compare various offers. However, you should also remember that time is money. It is possible that an item is cheaper in a shop across the city, yet you have to compare the benefits of saving and the transport costs/time consumption associated with chasing the best bargains.

Useful tips

Many families have submitted their tips on successful planning and efficient shopping. You are welcome to share your experiences and submit your message to the Institute of Private Finances.

Valuable tips

Saving money is best started by cutting the expenses on seemingly small daily purchases. It has been proven that the small items may be responsible large amounts being sucked out of your pocket. It would be a great idea to keep records of your purchases for a week to see what can be done to improve the situation. (from Twitter user @ingvilda)

You may count the money you spend on these ‘guilty pleasures’ such as chocolate bars, candy, magazines etc. and compare the total amount with the effort you have to take in order to earn this money. (from Twitter user @ingvilda)

It would be a great idea to follow the golden rule: first pay for your liabilities with interest that works against you. For instance, credit cards, consumer loans etc. These are the most costly and burdensome debts that have to be dealt with as soon as possible. (from Twitter user @ingvilda)

My family’s favourite pastime is turning the pages of large retailers’ advertisement leaflets that are abundantly delivered to our mailbox. They are quite helpful when it comes to finding the best offers for our favourite products. You get the same “Snickers” bar regardless of the retailer, while the price may differ. (from Twitter user @ingvilda)

When it comes to such basic products as sugar, we opt for retailers’ own brands, since they are produced by the same producers who also sell their products under their own brand. (from Twitter user @ingvilda)

We scrupulously study the price-quality ratio. Even a slight step down on the “brand ladder” may help you cut up to 25% of your expenses. (from Twitter user @ingvilda)

You should check your loyalty cards from time to time, for they may bring you pleasant surprises in the form of substantial discounts. It is a good idea to get rid of the unused cards and see if your favourite shop has introduced its own loyalty programme. (from Twitter user @ingvilda)

We go to the farmers’ market at the end of the day, for this is the time when traders offer discounts with a soothing effect on your budget. (from Twitter user @ingvilda)

From time to time we also review our operators’ contracts, for instance, mobile phone and internet service tariff plans. The technologies are developing at the speed of light and you may easily switch to a service that simply offers more for the same price. (from Twitter user @ingvilda)

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