If you find yourself computing every month-end, asking what happened to your salary without making any huge purchase, this is for you.
Speaking on ANC's "On The Money," registered financial planner Ryan De Vera explained how little things can lead to wastage of money.
1. Look out for the 'little things'
Small expenses like your morning coffee or ATM fees can eventually add up to big amounts that could be used for something more important.
"Almost everyone waste money. Before we even know it, we're already wasting money in small things or in bigger things. It doesn't always have to happen in an obvious way, and sometimes we waste money on little things like ATM charges," he said.
If you keep withdrawing in other banks out of convenience, ATM charges will pile up and you'd be surprised at how a P15 charge per transaction can total into a thousand in a year's time.
2. When impulsiveness attacks
Aside from ATM charges, buying things you don't need, buying things on an impulse, getting premium subscriptions, and not planning investments well are things that lead to wastage of money.
For De Vera, it is important for one to be aware of his or her money habits to avoid unnecessary expenses.
"We need to be aware of our spending. We need to be aware of the things that we buy, because a lot of people buy things that they don't even need, or they don't even have a use for in the future. That is why they keep on hoarding things," he said.
Did you ever wear that shirt you bought while on sale? Are you maximizing your cable subscription by watching all those channels? It's time to evaluate where your hard-earned money goes.
3. Some people want to reward themselves
Why do people end up wasting money? According to De Vera, people tend to go overboard because of a need to reward themselves.
"Maybe people fall into that trap because of some longing in their lives. They want to feel rewarded, because they feel that they've been working so hard all their lives, they want to feel a certain reward for all their hard work," he said.
"But then in the process of rewarding themselves, they end up buying too much, buying things they don't even need," De Vera added.
Some people reward themselves with expensive dine-outs, some go on a shopping spree on payday.
Stopping the habit
To avoid wasting money, De Vera suggests listing down expenses daily, and to tally everything by the end of the month.
"You just have to be very aware, list it down. Create your personal cash flow plan. Make sure that you measure how much money gets into your account, how much you spend on a day-to-day basis, and then just keep a list everyday, try to list it down, day in, day out. You have to just keep listing it down and tally it at the end of the month," he said.
One can also put money into separate jars for different purposes, like investment, travel fund, personal expenses, and others.
"When you start putting money into jars, you will eventually stop wasting money, and you will start having respect for what money can do. I'm not saying that people should love money; people should have respect for what money can do. Money is just a medium of exchange and is just a tool we can use to either bless our lives or to become cursed," De Vera said.