Steps To Curve Your Spending
Sometimes waving a magic wand to try and save some money each month, and changing all your banks and any providers isn’t enough to improve your finances as much as you want.
One of the things that you need to do is to simply stop spending, which can definitely be something that is easier said than done. We all have so many things that we have to spend on, like groceries, heating bills, and so on.
But of course, learning how to do so frugally is the key thing to being able to stick to your budget and to be able to live within your means. If you’re not able to stick to a budget then it can lead to getting into unnecessary debt, which is not going to be a good thing to have around your neck in life.
One of the first things that you need to think about is where you are wasting money. Of course, we all have groceries to buy. But are you being excessive with your grocery spend and spending much more than you need to?
Are you spending too much on buying and eating lunch at work, or grabbing a coffee every morning on the way out? If you sit down and look at your bank statements for the past few months, it will be simple to see where the problems are, and where you are overspending. From there, you can put plans in place to make sure that this is something that you avoid.
A lot of people can be quite shocked by the result of what they find, and where they find their money is wasted. So this really is the starting point to be able to sort your finances.
For some, spending can be something that they don’t give too much thought to. They know that they want it, so they buy it, and then hope for the best. But you need to have a thinking process in place, which helps you to have some more thought going into it, and more accountability over your choices.
You need to think about wants versus needs, as well as if it is something that you really need and will use. You don’t have to buy something that you simply like. You need to buy the things that you actually need. Plus, shopping around to look for the best price is a must too, because a need that can be bought cheaper has got to be a good thing.
So with that in mind, here are some things to go through your mind when it comes to spending; will they help you to stick to your budget and keep your finances in order?
Sleep on it
If you are thinking of purchasing something, then take your time over the decision. If you impulse buy, then it can lead to wasted money, because even if it is something that you need, you are likely to find it somewhere else for cheaper.
So waiting a little and sleeping on the decision can help you to either find a better deal, or help you realize that actually, you don’t need it after all.
Work out how much you need to work for it
If you become tempted to just impulse buy something, then it is a really good idea to work out how long said item would take you to earn enough money for it.
So if you are on a wage of $10 an hour, as an example, and the item is $200, it means that you’ll need to work twenty hours just to afford it (and if you work forty hours a week, that is half of your working week spent on one thing).
So this can be a good way to put things into perspective, and help you to see that you don’t need to impulse buy; you need to look for it cheaper, or decide if you even need it.
If you are someone that will spend if they go to a mall or when looking at online stores, then you simply need to remove the temptation. Don’t head to a mall if there is nothing there that you need to buy.
The same goes for looking online; just don’t type the web address into the search bar. Find something else that you can do and it will make a difference to your spending.
Make sensible swaps
There are some pretty sensible things that you can swap and switch, in order to save money. And when it comes to everyday items, then you do need to think about making the switches, as it can make a difference.
For example, if you have a smartphone and you will soon be out of your pay monthly contract and ready to upgrade, would it be a more sensible thing to keep the phone that you have, now that it is paid off, and look for SIM only plans instead?
This means paying much less a month, as your phone itself will be paid off by now, and then you could upgrade at another time, if you need to, when you can afford to. There are plenty of other things that you could switch too, like your energy provider, insurance provider, and even your bank.
If you are looking to save money on the items that you need to buy, then food can be one of them. Of course, we all want to eat well and enjoy the food that we are eating.
But really, you could be spending a lot on food if you’re not too careful. So from your monthly budget, make sure that you have a specific budget for groceries.
From there you need to plan, plan, and then plan some more, in order to stick to it, and keep you from overspending. You could even take a calculator with you (or use one on your phone) for when you go to the store; it can make you much more conscious of your spending and make a difference to what you spend.
So look what is in the house, and then buy fresh to accompany it; don’t impulse buy or just pick convenience foods, because the prices will be much higher.