There are rules to help curb spending, and if you’re tired of having too many bills and little disposable income, making a few adjustments to the way you view money can help. Most people don’t learn budgeting and money management in school, they have to learn by trial and error. But even if you’ve made several spending mistakes in the past, following these seven simple rules to help curb spending can get your finances on track.
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1. Get Rid of Your Credit Cards
If you need rules to help curb spending, start by getting rid of your credit cards. This may seem like a drastic measure, but sometimes, this is what it takes to curb spending. With credit cards no longer in your wallet, there’s a low risk for frivolous and impulsive spending. This keeps more cash in your wallet or bank account.
2. Ditch Your Debit Card
Not only should you reign in spending with your credit card, but also your debit card. Carry only as much cash as you need for daily expenses such as gas or transportation. Keep the rest of your money safe in the bank and leave your debit card at home. This results in fewer swipes throughout the month, and at the end of the month, you will have more cash in the bank. This is an excellent way to jumpstart your personal savings.
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3. Pay Bills on Time
You may not associate bill payment with spending less. But think about this: each late payment results in a late fee, which means that you’re spending more for expenses. Develop a payment schedule and remember your due dates. Pay early if possible to avoid any issues.
4. Get a Savings Plan
If you make saving a priority, you’re less likely to spend on things that you do not need. How much money do you have in your emergency fund? If you have less than three months in a rainy day fund, it’s time to get serious. For each paycheck, deposit at least 10% into your savings account. Understandably, this will cut into your disposable income. Rather than see this as having less in your pocket, view this as a step toward better money management.
5. Avoid Sales
If you have a spending problem, chances are that you won’t be able to window shop without pulling out your wallet. Understand your limitations and avoid retail sales at all costs. If you have to visit the store for an item, leave your debit card and credit cards at home and only bring cash. This limits how much you’re able to spend.
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6. Look for Free Entertainment
Most people enjoy going out on the weekends but if you’re not careful, you can spend more than your budget on entertainment. Get creative and look for free ways to have fun. Maybe you and a group of friends can head to the beach, or perhaps go to a low-cost or free museum. Then again, maybe you can hang out at the house and play cards all night.
7. Get a Support System
If you can’t control shopping on your own, solicit help from a friend or family member. Each time you feel the need to go shopping and buy things you don’t need, call up this person to talk or hang out. This can serve as a distraction and take your mind off shopping.
No one ever said giving up a spending problem would be easy. However, look at the big picture. Imagine what you could accomplish financially if you kept more of your money. Did you have a spending problem in the past? How were you able to spend less?
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