Spending is something that everyone should be conscious about and by that, it means that we should keep track of our money at all times. Most people make use of a budget to list down all of their spendings; however, this technique doesn’t work for everyone.
Others usually rely on conscious spending alone which is actually fine as long as you break the habit of spending whenever you feel like it. This will require a lot of discipline from anyone but it can really be fulfilling if done properly in the end.
To control your spending you need to know where to spend money and then minimize your spend on those items. simple two-step process!
But these are easier said than done.
First, decide what to spend on
Many people wonder what to do with their money during their lives. Some spent are worth making while others are totally useless, and you might regret them in the future.
It is important to make a list of the big investments that you want to make in your life and spend your money on those.
Buying a house, a car, a long vacation trip or expensive gadgets – these require huge amounts of money that you can’t save from one day to another.
You have to control your spending, properly manage your time, your monthly income and your expenses in order to meet the price.
at the same time, some of the spending that people consider important are not that significant and you should be able to make the difference between what matters and what doesn’t.
Think of what’s important in your life
The first step to control your spending would be setting goals for your life. You need to know exactly what has value for you.
Some people might be happy by simply buying a house, but you might not be satisfied with that. If you feel happy traveling, then don’t hesitate to do it.
This is all about your preferences and what makes you feel good. But, on the other hand, it would be advised to spend on things that ensure your security and healthcare.
For instance, you can look up long-term care insurance companies and see what’s the most appropriate choice for the life you live.
Buying a house is essential while buying an avoidable expensive gadget is not unless you have a passion for them. It all depends on the way you perceive your life and what’s important in it.
There are no ground rules to follow. Trust your instinct but avoid spending on whatever makes you unhappy or unfulfilled.
Decide whether the spending will have an impact on your life or not
When putting your money into something, it’s paramount to track the impact it has on your life.
For instance, if you buy a property and you’re happy with it, you feel fulfilled that you invested in it, you made the right choice.
On the other hand, if you spend a lot of money on a smartphone and you don’t use it at its maximum capacity, you simply wasted money.
The secret is to pay lots of attention to the effect of spending this money has on the way you live entirely. Insurance can save your life, your belongings and everything you care about.
If you make these spendings wisely, you can change your future. Every penny you spend needs to have a purpose.
Control your spending by following ways
Make Use of Envelopes
A lot of people overlook this technique but they are actually missing out on how helpful it can be.
If you often end up overspending on certain things, try to use envelopes for quite some time and see if this technique works out for you.
Get an envelope for every category in your expense list, like your grocery bill, entertainment expenses, utilities, etc.
You don’t have to have a lot of categories just to make this work, you can always start small then work your way to categorizing your envelopes more.
Switch to Gift Cards
Instead of carrying a large amount of cash all the time, try to get in touch with gift cards.
This is quite the same with the envelope method but what’s good about this that you don’t have to carry around cash so you won’t be tempted to spend more though you have to be involved with it even more.
Try to prepay all of your expenses and make sure that you’ll only get the things that you need.
You still have to be careful with this one because some gift cards can have extra fees with it and you may end up spending more.
Make a Schedule
Going to store often will only tempt you to spend more because of the things that you will see. It would be best to plan all of your shopping, grocery buying, personal needs or wants on a regular basis.
As much as possible, avoid buying these items after work. This habit can ruin the entire point of controlling your spending and if you keep on doing this, you will also lose track of your money easily.
List down Everything
Most people end up asking the question “Where did my money go?” at the end of every month because they don’t list down the small things.
Put some effort into listing down every item that you spend on, vending machines, snacks, etc. Those little things can add up and may be the reason why you end up losing everything at the end of the month.
Check your list and you’ll realize how much you’re spending on which and if there’s something you can do to adjust it.
If you often find yourself spending your salary from the moment you receive, then this method can really work for you.
Go to your bank and ask if they are offering automated transfers so that when you get your salary, a portion of it will automatically go to your savings account.
The point of doing this is to get used to the habit of living or spending less so that you’ll have enough money for your savings all the time.
Add a friend
Having a friend join you in with your goals is a lot easier because you’ll have someone to tell to focus on your goals.
Just make sure that you trust the person enough to listen to what they’re going to tell you.
Follow these tips to control spending and you will surely be able to save up on your own easily.
Whether you are looking for a way to save money for your credit bills, rent or simply for entertainment purposes, being conscious about your finances, setting your own goals and checking credit score regularly will do the trick.
Readers, what’s your best way to control spending on unnecessary items?
Jai Catalano says
One of the ways I save without over budgeting is I invest in dividend paying stocks that aren’t overly volatile. I then sell a covered call to hedge my bet further. It’s just one of many…
SB I really am digging the new logo.
KK @ Student Debt Survivor says
I know many people who swear by the envelope method. I think it makes a lot of sense and keeps you accountable for how much you spend and out of what “category”. As for the “add a friend”, that’s why I blog. It keeps me accountable.
[email protected] Guy,Skinny Wallet says
These are great suggestions. We use gift cards for gas and necessities from the store often. Our elementary school has a program where you buy gift cards and the school gets a percentage. It is really helpful when it comes to spending. I am going to be taking some of these suggestions and give them a try. I am not good with a budget, that is for sure!
Dhruv Bhagat says
That’s nice points.. I will surely keep a check on these things!! 🙂
Rob @FinancialSprout says
A trick that I use is to only keep smaller amounts of cash on me, and to decide how long it needs to last me. Then when I go to the store I decide that I need that dollar more for gas than a candy bar. It may seem insignificant, but it helps keep me from delving into my savings account all the time.
Lerma of US Visas Migration Expert says
I hate to admit this but I am guilty at charge of spending too much this month. Hopefully by following the tips that you’ve mention here in your article will help me save a lot of money.
Glad I could be of some help. Keep reading 🙂
Vicky Taw says
Thanks for sharing this information with us, I always like to read such information regarding that topic so please keep it up and keep sharing..