Financial Wellness & Spending Plans

Your spending is in your hands. Learn how to manage and control it every day.

Here are two important steps to help reduce your spending:

1. Avoid impulse buying. Think before you reach for your wallet and your credit card. If you had to pay cash, would you still make this purchase?

2. Compare shops as a matter of habit. Differentiate between your needs and wants.

Need: A necessity, something required and essential for life. Example: Clothing, food, tools for work and medication.

Want: A desire, something wished for and non-essential. Example, a vacation; meals in restaurants, video games, gym memberships and designer shoes.

 

My needs and wants - Setting priorities

Difference between needs and wants is the first step.
The next step is setting priorities on your spending.

 

Setting spending priorities

To set your spending habits, you could refer to a simple 1-2-3 priority system:

• Essential items
  (e.g. basic food, shelter, clothing)
• Important items
  (e.g. transit pass, running shoes, cell phone)
• Non-essential and not important items
  (e.g. candy bars, spa treatments, music downloads)

 

 

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