As life gets more expensive, it’s important to know ways to stop spending so much money. We are constantly bombarded with new products and updated versions of old products. Plus, it seems like the entire mall is always on sale or that majority of stores have some type of promotion. I’ve got some tips of ways to stop spending so much money so you won’t find yourself in debt.
1. Cash Only!
One of the ways to stop spending so much money is to only use cash! Credit cards, as well as debit cards, give you a false sense of more money than you really have. While you’re swiping your debit card, you can’t visually see the money that you’re spending, so you don’t realize how much you’re losing or how much is left. Credit cards are even worse because you can be granted a high credit limit., therefore, you might spend more money than what you actually have in your savings thus making it harder for you to pay back your debt.
2. Budget Yourself to a Better Future
When you don’t set a budget, you allow yourself to spend more than what you really should be. Take time to do some research on the Internet or visit a financial advisor (even if he/she charges a fee, consider it an investment towards your financial future) and come up with a budget for your expenses.
3. Make Your Own Food and Drinks
It’s easy to be tempted by hot, fresh food from your favourite cafe on your lunch break. However, eating out, even at fast food restaurants, can become an expensive habit. To put it in perspective, if you bought a coffee every morning before work for $2.50, by the end of the month you’ll have spent $50 on coffee alone. Instead, take that $50 and spend it towards two weeks’ worth of groceries which can include a canister of coffee!
4. Be a Role Model
When you have friends who spend money faster than they earn it it’s easy to lose track of your spending when you’re trying to keep up with them. If your friends are asking to go to lunch every week or on shopping trips more than you can afford, teach them the importance of budgeting and saving money by using yourself as their role model. You’ll be helping yourself out as well as them!
5. Check Your Accounts Regularly
When you don’t keep track of how much money is entering and leaving your bank account, you can have a false perception of your financial state. Instead, double check all the charges on your credit and debit card. Also, if you don’t have guaranteed hours at work, the amount of your pay check will differ every deposit. Make sure to see how much money was deposited in to your account to adjust your budget accordingly.
6. Be a Thrifty Shopper
If you’re in desperate need of a winter coat or new winter accessories like mittens and scarves, be thrifty and check your local thrift store. Most thrift stores double check the quality of their donations before re-selling them, so you can ensure that most of the items you’ll find are in reasonable condition.
7. Online Shopping is the Devil
Online shopping is worse than going to the mall because you have access to thousands of stores right at the touch of your finger tip. If you’re on the newsletter/mailing list of any online stores make sure to remove yourself from them. Also, if you have any apps from your favourite store, delete them off your phone. Your clothing expenses will drop significantly.
A lot of our expenses are because we spend money on things that we want and not need. If you eliminate the temptation of buying lunch or doing some online shopping, you can save hundreds of dollars a year. What are your tricks to spend less money?