Spend Better?

When a recent Citi survey asked Americans what bad financial habit they’d like to break in 2011, 25 percent said they wanted to stop spending on things they don’t need. Now that the economy is in “recovery mode,” how can we loosen the grip on our wallets but still spend wisely?

“Before buying anything, ask yourself if it is a ‘want’ or a ‘need,’” says Feleatha Hyde, client advisor and first vice president of Private Wealth Management at SunTrust Investment Services, Inc. This “allows you to focus your spending on the necessities and then plan and save for the items in the ‘want’ bucket over a period of time.”

Hyde recommends paying with cash or a check card over a credit card, unless you’re already in the habit of paying off the credit card at the end of each month 

without sacrificing your retirement and savings plan, “or impacting funds required for monthly bills and living expenses.”

Want more?

Some spend excessively without realizing it. Experts suggest conquering this habit by frequently checking bank statements online, identifying overspending areas and tightening the budget for next month. “Frequent ‘browsing’ through stores, including online, also leads to excessive spending,” Hyde adds.

Those who spend without going overboard use creative tactics like cooking at home, bringing coffee to work using the library to borrow books or rent movies for free.

Bonus PINK Link: Has excessive spending landed you in debt? Here’s how to get out of it.

By Brittany Hampton

“Wisdom outweighs any wealth.”  Sophocles