9 Quick Ways to Waste Your Hard Earned Money (Kenyans)

9 Quick Ways to Waste your Hard Earned Money (For Kenyans)

How you blow up your hard earned money quick

Most of us end up spending more of our hard earned money on shopping than we had planned for.

You go to a supermarket, shop or mall with the thought of spending Kshs 2,000, but end up using more than Kshs 5,000.

The extra shopping happens because of many reasons, some due to psychology marketing or our lack of a plan.

Impulse buying is one of the habits that are leading Kenyans into bad debts.

Below are some of the ways to blow up your money and how to tame them.


Being a victim of Psychological selling

Marketers and advertisers have a way of making you feel like you are getting a great deal when you make a discounted purchase.

They will tell you to buy an overpriced item for Kshs 5,000 and get a second one at half the price. You end up spending Kshs 7,500 on items which would have cost you not more than Kshs 2,500 each.

Before going to the store, know what you are going to buy, at what price, and stick to your budget.

Shopping without a list (lack of budget)

Most people do this all the time. You go shopping for groceries, but you end up buying fruits, cereals, and other things.

By having a list, you only buy the things you have planned to buy or the ones you need.

Another way to control impulse buying is to carry just enough cash for your desired shopping.


Falling for the clearance merchandise sale

In today’s World, people will do anything to sell you a product. One of the ways is by creating urgency. They put an item as limited and due to our fear of being left out; we make the purchase even when we don’t need the item.

Always avoid the trap.

Credit Cards and Debit Cards

Many people always have their hands on debit and credit cards which makes overspending easy.  Stores together with banks have come up with clever ways to make you pay with these cards in the name of convenience.

Buying goods and paying for services with a card makes you spend more and you only realize how much of a problem it is once your account is empty or has an overdraft.

In addition to overspending, most of the time you are charged a transaction fee by your card issuer which if done for a couple of times, ends up leaving you with a huge dent.

If you want to overcome this, always buy your items with cash. Carry enough cash (needed) for that particular shopping.


Entertainment

If you have noticed, entertainment joints want you to be as occupied as much as possible. In bars and nightclubs, they play loud music and employ bartenders who will make you spend the last buck.

What we don’t know is that the music and the attendants are meant to distract you so that you forget the spending limit you had set for yourself before getting there.

The loud music makes it hard to have a conversation with your buddies and the end result is more and more orders.

Keeping up with peers (Fear of Missing Out)

If you’re not disciplined enough, peer influence can lead you to a serious financial problem. It is sometime hard to say no to our friends but the sooner we learn how to, the better.

When we go for a trip, party, or clubbing, we tend to spend money that we don’t have just to impress our peers.

Choosing friends who understand your financial situation can be of great help.


Mobile & Online Money Transfer

With money in your phone or an online account (e.g. PayPal, online banking), it is easy to be tempted to buy things you never intended to.

To overcome the temptation, be disciplined and use the money only for the intended purpose.

Festive season celebrations

Festivals and celebrations are inevitable. We have to celebrate whether with our family or friends. It is easy to overspend during such seasons if you don’t have a budget.


Buying with your eyes closed (Buying without bargaining or comparing prices)

Some people just buy stuff. They at times don’t care about the price just because they have the money on their card or pocket. For those who care a bit about their finances, they don’t compare the prices with similar sellers who offer the same products and services.

How many times have you bought an item from a store only to walk past another one nearby and see the same item at a way cheaper price?


Bonus: Healthy living and well being

Nowadays, if a person or company realizes that you are on a journey to better your health or fitness, they will try to sell you all the related products that they have. From your desire to lose weight, get fit or live healthily, you may get tempted to buy any product presented to you as long as it serves the purpose.

Create a plan of what you want to achieve, how much you need and then stick to your decision.

Keeping a Budget and a shopping list can help you a lot during this process.



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