How to save money and prioritise spending on what is really important to you

  In 2025, everybody seems to be worried about the future and about what all the changes happening in the world is about to bring. We all have been touched by world phenomena like the Fuel price hike due to the Russia- Ukraine war, the pandemic that lasted three to four years and the insecurity that is now a global reality. All classes seem to be affected. Of course, the poorer you are the tougher it is. 

In times like this and even when everything is ok, we all need to learn to handle our budgets. I list here several ideas I have learnt over the years. Please feel free to send me your ideas in the comments below.

1. Learn to really look at your bank statements. There was a time when I wasn't really in charge of the money I earned. Why? Because it was so much easier if my partner handled the money side of things. But, over the years, I really started to understand where my money was spent easily by regularly keeping an eye on what I spend on. Where does the maximum amount of my expenses go? Which month is the most expensive? Which month is a month that allows for some extra savings? Learn to treat your money as a tool to satisfy your wants and needs and not as either the most or least important part of your life. 

The bank statement is really a financial representation of who you are, so own it and understand it.

2. Make a list of what categories of expenses you have. We mostly have rent or mortgage that is a big chunk in our budgets, utilities like electricity and water bills, Internet and telephone bills, university or school fees for our children, grocery bills, transport related expenses, taxes etc. After these categories, the amount that remains is really the 'money' that we need to learn to treat really well. Of course this is also our money, but, if we treat it as what is left, then we can develop a feeling of really using it judiciously. 

3. Learn what your needs are and what are your wants. With this remaining budget, whenever you feel like or end up spending, learn to think of the expense as whether it was something that was a thing that you absolutely couldn't do without (a need) or something that gave you immediate pleasure (a want). Don't make yourself feel bad that you spent on your pleasure, but learn to just categorize the expenditure. By telling yourself what you are spending on, slowly, you will become aware of how many times your immediate pleasure takes precedence on the logical and rational side of your reasoning. People who save enough money may find ways to not indulge in that immediate pleasure like reasoning with themselves, stalling their purchases (especially online by keeping the product in the cart and not paying for it), deciding to discuss with a friend or someone to help them be accountable for excess spending.

4. Learn coping mechanisms. Once you are good at keeping an eye on your bank account and its fluctuations, you will find yourself proud when it looks stable. You could probably transfer money into a saving's account every month. Try paying yourself a small amount when you receive your salary. Put in the amount that you think is reasonable. Watch whether you find yourself going back to take money out from your savings. If this happens regularly, it means you can reduce the amount that you pay yourself the next month. Be proud when you actually don't touch your savings in the month. Take pride in every small thing you learn. You are learning to get control over your money and your life. It's okay to start at any age.

5. Once you start getting good at saving, you will find good deals and good ideas yourself. You will know who you are and how you function. Your decisions will not need to be difficult. For example, you will be a better judge at knowing  if buying a day travel ticket is better than single trip tickets. You will have enough experience from your regular life to know if you are a real walker who can go the extra mile or you rely highly on public transport. You will be able to recognize if walking around shopping areas is a trigger for you to spend. Or being out on a Saturday evening with friends is more expensive than a Thursday night meet with a friend, where you get home quicker. 

6. Other than understanding your budget, you need to work on why you spend? Are you prone to the' Fear of Missing Out- FOMO', when your friends suggest something? Do you find yourself buying a random outfit in a week when it's tough at work? Do you go to the mall just because you're lonely on the weekend? Do you order food because you can't cook or because you're trying to look like what people on social media look like? Rich people with affluent and fun lives?

7. Try to change one habit at a time. Slow and steady is the answer for long term changes. Try and focus on what really makes you, the individual inside that body happy. Insecurity and people pleasing can really eat into your finances and no one should be allowed to control you like that. When you realise you allow this to happen to you, real change can be achieved. You will find yourself very happy when you spend money, because it will be based on your needs or wants, not influenced by others.

I use these tips since some years and have slowly learnt that they were useful to me. I hope they help you and if I come up with new ideas, I will update the article regularly.