What could be more satisfying than being able to treat yourself or your nearest and dearest with purchase- be that a physical gift or an experience- with the money that you have earned through hard work? With spending money, it is not necessarily about being overly frugal but being that much more mindful of where your money is going that you are not spending money without much thought.
Your spending habits will determine a great deal about how you live your life and whether you can manage your money on a monthly basis, not having to rely on payday loans for example, or put most of your purchases on your credit card. Here are some of the best tried and tested methods when it comes to curbing your spending habits.
Formulate a clear plan
Curbing your spending habit should be relatively easy to do when you work towards creating a foolproof that allow you to not only live within your means but also get rid of some debt and contribute more to your savings account. In your budget, you should work out how much your incomings are and then work out an estimate of how much money you need regarding food, shelter, utilities, and clothing, etc. You can then work out and tweak each month where your money is going and keep track of your expenditure so that you’re better equipped to saving money.
Avoid spending recklessly
A tendency that many of us have is popping into our favorite shop and then walking out after having made some purchases that we otherwise would never have made. Through limiting your contact with online sites and stores that you love shopping in you will be far less tempted to make impulsive purchases that will drain money from your bank account.
Plan your purchases
While many of us tend to go shopping impulsively – this is true of both shopping for food or other items for the house- this is one of the easiest ways to end up overspending. Rather than falling for TV adverts that encourage you to buy something, it is far more sensible and better for your wallet to plan what you need and not need and stick to that list.
If you shop in particular stores each month, you may find that they have specific deals on at certain times which will allow you to save money if you follow their particular deal patterns and only buy something when it’s on offer. Alternatively, you should also look towards using price comparison websites if you are after something specific but do not want to pay full price for it in your favorite department store, for example.
There have been studies released that show that 28% of us use our mobile phones to make impulsive purchases while we are waiting in line or on our daily commute. Through taking the time to switch off your phone or go offline, you will be far less tempted to spend your time spending money and have more money to save.
Only carry cash
Once you have made a spending budget for the week or month, one of the best ways to ensure that you only spend the amount that you have budgeted for it by withdrawing that amount of money as cash and only spending that amount. This will ensure that you do not overspend through making last minute purchases and will also prevent you from relying on your credit card too! If you struggle to not use your cards, then try leaving them at home!
Come back later
If you are looking at making a purchase, then one of the best ways to find out if you need to make that purchase is to put the item back and walk away. Often we are drawn to making impulsive purchasing decisions which are why having some time to think things through is so important to ensure that you do not spend money that could be put to better use elsewhere.
Get your family and friends to help
If you are looking for some moral support during the process of curbing your spending habits we recommend that you talk to your family and friends. They will be able to assist you in avoiding overspending and even give you some tips that help them save money themselves. After all, a problem shared is a problem halved!
Take small steps
Transforming the way that you spend your money can be tricky, especially in the beginning. The likelihood is that if you are a committed shop-a-hole you will not be likely to change the way you shop overnight, and that’s okay. Look ahead at what the potential holds for you and your family if you remain committed to sticking to your budget and making changes over time. In a year you might be amazed at how far you’ve come!
As with so many things in life, it’s important to start making small changes and keep yourself focused on your end goals, which is something that can also be applied to spending. Through maintaining the balance between purchasing the things you need most, paying your bills and having some money leftover to put into savings, you will soon be on your way to becoming that much more skilled at not only curbing your spending habits but also saving money to help you achieve your long-term goals.