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The Pros and Cons of Optimised Spending

Monday, September 11, 2017

The Pros of Optimised Spending – And How to Avoid the Main Pitfall

You work hard for your money, and that’s why it’s more important than ever that you wisely choose how to use it. Rather than throwing money away without even realizing it, optimise your spending to get the most value out of it, ladies!

Why Optimise Spending?

Optimizing spending means making decisions that hold greater monetary value. For example, you might choose a generic label of dish detergent to a brand name that costs twice as much when you go to the store. In general, optimised spending means you don’t spend more than is necessary on anything or at least do some very “mindful” spending, while living well on a lot less money than many other people.

By carefully choosing how you spend your money, you are more likely to spend less than another person who in the same income level as you. In turn, you will have more money to save every month, which you can save for your retirement, which means more freedom, sooner. Now those are definite advantages!

But Watch Out for…

The only drawback here is that optimised spending means you won’t have that much fat (if any) to cut from your budget if times get tough down the road. You’ve already reduced your budget considerably so that means that a surprise expense can really throw a wrench in your budget.

To help avoid this pitfall, I would suggest adding a bit of a cushion to your budget, so that you have some extra money available to you in case of need. As emergencies aren’t predictable, you may or may not every need to use that money you’re putting aside. But, if you do need those funds one day, you’ll have the money waiting there for you. And that’s great peace of mind to have, isn’t it?

Before you go

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