I Dare you to Spend Your Money Wisely

Money must be spent wisely. As an upcoming young adult, you are not permitted to throw your money through the window. Remember for each penny you spend on unnecessary item, that could be a potential investment that can generate more income in the future you’re throwing away.

I can imagine the number of things you’ll like to buy. Ranging from clothing to other expenditures, it’s a long list you got there. But, do you have enough money to make to take care of your expenses?  If no, continue reading to know how to spend money your money wisely.

The urge of shopping

Distinguish between assets and liabilities

Let’s dig a little into accounting. Accounting teaches us that every one of us can separate what we own and what we owe into Assets and Liabilities. Assets are useful tangible or valuable things that a person owns. These are things that are able to generate more valuables for you. Meanwhile, liabilities are things that do not add up to your life rather, they are the things we owe and are a sign of future debts. Accounting tells us that our assets need to match up with our liabilities in order to get a balanced account. The truth is this is true if you will like to remain on the balanced side of the equation. As a young adult, it is best to keep your assets on the high side while your liabilities remain low, this way you can grow your assets for better future. Therefore, what you need to do is to spend more on assets rather than liabilities.

own and not owe

You might be thinking you are still too young to focus on assets as most young people think that assets could be uninteresting or boring. For example, accepting to forgo a shopping session in exchange of attending an entrepreneurial seminar. Obviously, most people will choose shopping (liability) over the seminar (asset).

There is no need to feel awkward if you usually spend your money on more liabilities than assets, it’s a common trait that exists in young adults. I have heard some of my young adult peers say “looking good is good business”. It is true that you have to look good. as a young adult one thing you would not want to do is to is not take take care of your self, but remember looking good does not mean looking expensive. There are ways to look good that are cheaper and will not put you in debt. we are always tempted to get top brands in order to show case ourselves or prove that we are able to afford them. However, you ought to fight such an impulsive behavior. Once you have distinguished between your Assets and your Liabilities, it will be easier for you to move to the next step.

Make a list of preferences

 A list of preferences is a list that shows the things which are important and urgent at the top and other ancillary purchases at the bottom. Your needs can be classified in order of preferences so that you can wisely spend your money. It’s synonymous to going to a grocery shop where there are different types of groceries from distinguished brands  but, you only have to buy only what you need, because you can’t buy the whole shop thus you purchase only the necessary.

You can’t buy everything in here, you have to make a choice.

To make a list of preferences doesn’t mean you won’t ever get to buy the ancillary items on your list. No! That isn’t what we are saying here. The point is, for now, those ancillaries are not necessary but they might become preferences in the future. This is where the next point comes in. 

Practice shortlisting

Once you decide to spend your money wisely, you need to control your impulses and anxiety. Shortlisting is a limited list of important items drawn from a long list of selection. Once you short list your expenditures, you will definitely know how to spend your money wisely.

Somethings aren’t worth it for now.


We might not be conscious of this, but the easiest way to get in debt or spend more money that you should have is using card for shopping than cash. It is true that your card gives you better credit advantage, but in order to avoid spending more than you should, try using card for online bills and cash for shopping and see how much you will save. When I decided to start taking cash and not card to the store, I discovered I saved more by not spending above the cash I would carry to the store. Mean while when I use your card, I get tempted to go above my spending budget.

You might be asking yourself “What about online shoppers?”. It is true that online shopping is what is common this days and you can not shop online without a card or online payment method that require you to use your card. The truth is, it is easy to shop just for what you want online than it is for you to shop in store. If you still don’t understand it, go back to the previous point that says “practice shortlisting”.

one way to control your spending

The points above are essential factors you need to take in to consideration if you intend to spend your money wisely. As a young adult, I know life can be so exciting, but you got to get your head out of the clouds. Not everyone is born with a silver spoon(wealth) in their hands. Know your financial background and situation and live according to what you can afford while preparing for a more financially heathy future.

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