Have you ever heard the quote, “A small leak can sink a great ship”? Benjamin Franklin famously said this about paying attention to the little expenses that can wreck your budget.

You’re probably a very financially responsible person, one example being you’re on Southern Savers trying to save money and live frugally! But there are times all of us waste money, and you may be doing it more than you think. There are some *spending red flags* that can alert you that maybe you’re not making the best purchasing decision.

Spending red flags are warning signs that you might be making an unnecessary, impulsive, or financially risky purchase. Read on to see some spending red flags, plus some green flags!

9 Spending Red Flags:

1. You didn’t want it until you saw it at the store. It doesn’t mean it’s a bad purchase, but it’s a clue that you should give it some thought.
2. You’re buying it while you’re in line at the register. This is a classic example of buying something you didn’t plan to.
3. You tell yourself, “I’ll figure out how to pay for it later.”  If you don’t have a clear plan to cover the cost, it’s a sign to pause.
4. You’re feeling emotional (stressed, sad, bored, or excited). Emotional spending can account for way more purchases than you think!
5. You’re buying something because your friend has it or you secretly want someone to know you have it. Buying things just to fit in is a slippery slope to unnecessary debt.
6. It’s on clearance, but you wouldn’t buy it at full price or you convince yourself you might need it later. If the discount is the only reason you want it, you might not actually need it.
7. You’re justifying the purchase with “I deserve it.” Treating yourself is absolutely fine and necessary every once in a while, but using this as an excuse too often can add up.
8. You’re using a credit card because your bank account is low. If you can’t afford it now, will you really be able to afford it later?
9. It’s sitting in your cart for days, and you’re still unsure. If you’re hesitant, that’s a sure sign you don’t really need it!

9 Spending Green Flags:

1. You planned the purchase ahead of time. It’s in your budget, it’s on your list – you’re good to go!
2. You checked your budget  (and bank account) before making the purchase. You know you can afford it without stressing about money.
3. You did your homework on best price and quality. Comparing options before buying means you are making the best choice for your money.
4. You waited a few days (or longer) before buying. I tell my kids all the time, “if you still want it tomorrow, we’ll consider getting it.” About 99% of the time, they forget about the next day. If you still want it after some time, it’s likely something you actually want/need!
5. It’s something you genuinely need or will use all the time. If it fits in your budget, most likely this is a good buy!
6. You’re buying what YOU want, not what you want someone else to see. If you’re buying it because you can afford it and you love it, then it’s probably not because of social pressure.
7. You’re paying with cash or a debit card, not relying on credit. If you don’t need to borrow for it, that’s a good sign. (An exception is if you’re using a credit card wisely – aka for the benefits – and paying it off every month, but that’s a whole other discussion!)
8. You’re still on track with your savings and goals. This purchase doesn’t mess with your emergency fund, savings or ability to pay bills.
9. You know exactly how this purchase fits into your goals. Every dollar has a purpose. For example, if you’re buying a cute bag because it’s on clearance but it’s not THE bag you really want – save up for THE bag instead of settling!

What do you think? Do you listen to that little voice of guidance when you’re shopping? What are some of your biggest red (or green!) flags when spending!
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