Ever reach a point at the end of the month where you just pause and wonder where all your money went? Well, welcome to the club!
No matter how many times the little voice in your head hopelessly chants “Spend less, spend less…”, it often leads you nowhere. Be it splurging on those new pair of sneakers or that handbag you just can’t live without, one thing remains constant – your pockets are lighter, and often – emptier!
If the uncontrollable urge to shop is wreaking havoc on your life, here are a few easy tips to curb your spending ASAP!
Take Control! Make It Right
Change your mindset. To change your dynamic with money, it is crucial to ask yourself this question – Is it a need or a want? Identify your priorities and classify what your needs are. This could boil down to simply just food, clothing, shelter, etc. Allow yourself only two “wants” in a month and stick to this plan. If you don’t need it, then you should contemplate giving it up. Spending money on “wants” will leave you with less or no money for the proverbial “rainy day” – for things that truly enhance your day-to-day life.
Additional Reading: Earning More Than Before But Saving Much Less? Here’s Why
What Gets Measured, Gets Managed
To really realise where all your money is going, use an expense tracker to help you see if your current spending habits align with your priorities and goals. Tracking where you spend your money every month is now easier than ever with a smartphone.
Pssst…You can download the BankBazaar Mobile App here!
Set a Time Frame for Your Short-term Financial Goals
Establishing some reasonable, short-term financial goals is an exceptional way to stay driven as you change your spending habits. These goals serve as a good reminder of the reasons why you’re making this sacrifice and cutting back on your monthly expenses.
These goals must not be generic either. Set measurable short-term financial goals like “I will reduce my spending on ordering food from Rs. 3000 a month to Rs. 1000 a month”. This specifies the target you should aim for.
The Zero-Spend Day Challenge
Assign one day every week as a zero-spend day. When you’re trying to save more money, the way you approach the challenge makes all the difference. It can be something as simple as cutting out small, everyday expenses like ordering a cup of coffee or satisfying those midnight cravings with desserts.
With a challenge like this, the percentage you’ll be able to save might vary every month. But even increasing your savings by 1% each month can make a significant difference. Start now!
Additional Reading: Essential Tips for Financial Independence
A Small Leak Will Sink A Great Ship
As famously quoted by Benjamin Franklin, “Beware of little expenses; a small leak will sink a great ship”, it’s a slippery slope if you miss out on controlling and sticking to your budget. In the same way a small leak can contribute towards the sinking of a ship, going even a little over budget can derail your plans for financial independence. So, roll up your sleeves and start saving!
You Can’t Escape The Responsibility Of Tomorrow By Evading It Today
Always pay your bills on time! Your Credit Card bills, or any other bills for that matter, are very important and must be your first preference every month. You can’t hide the notifications and emails, pretending to have never received them. Irrespective, you’ll have to make the payment eventually, so might as well do it on time to avoid any late payment charges and any negative impact on your Credit Score.
Learning How to Stop Spending Money is Difficult, But It Isn’t impossible
It takes time and commitment to stop overspending and change your power dynamic when it comes to your spending habits. This happens to the best of us, so don’t be hard on yourself! Once you start budgeting and religiously follow your goals, you can easily differentiate between just spending money on useless purchases and actually utilising it sensibly instead.
So, the next time you find yourself reaching out for that ‘pastel-hued satchel’ or your equivalent to it, pause, take a deep breath and briskly walk away before it’s too late.