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Money Saving Tips: 6 Ways to Stop Spending Part 2

 


6 Ways To Stop Spending

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One of the best ways to save money is to simply stop spending as much. If you're already practicing methods from our previous 6 ways to stop spending guide, we invite you to try these new tips to help you spend less and save even more.

 

1. Know Why You Buy

  • Knowing what triggers you to spend money can help you resist the urge in the future.
  • You may not even realize you spend more in certain situations until you take the time to think about your spending habits.
    • Some common triggers include: Emotions like sadness or anxiety
    • Peer pressure when out with friends
    • Being in your favorite store or on vacation

 

2. Wait Before You Buy

  • Give yourself at least 24 hours before making a nonessential purchase.
  • Wait even longer for big-ticket items. For example, wait 30 days before buying a new computer or piece of furniture.
  • Giving yourself time to evaluate your needs helps stop impulse buying.
  • You might find you no longer feel the need to buy the item after waiting for a while.

 

3. Pay With Cash

  • Credit cards are often too tempting since using them doesn’t feel like you’re spending “real” money.
  • The convenience of credit cards makes it easy to overspend.
  • Try leaving your credit card at home and using cash to make purchases.
  • Give yourself a daily cash allowance so you can't spend more than you have.

 

4. Make a Budget

  • Do you know how much income you make each month? How much you need for expenses?
  • Making a budget is one of the best ways to curb your spending by showing you where you might be overspending.
  • Create a budget in five easy steps:
    1. Start by tracking your spending in a spreadsheet or document so you know how much you usually spend per month.
    2. Calculate your total monthly income — from all sources.
    3. Add up all your monthly expenses — such as rent, car insurance, bills, and card payments.
    4. Subtract your expenses from your income.
    5. A positive number means you have extra money for saving. A negative number means you need to cut expenses.
  • The goal of a budget is to give each dollar you earn a job so you're not spending more than you make.

 

5. Set a Savings Goal

  • Set short-term savings or financial goals to help you spend less.
  • With a clear goal in mind, you'll think twice before spending money.
  • For example, if you want to save $1,000, you'll be less tempted to make unnecessary purchases.
  • Start small and work your way up to bigger goals.
  • This gives you a feeling of accomplishment and motivates you to keep saving.

 

6. Check for Discounts

  • You might be spending more than you need to on your everyday expenses.
  • Check if you're eligible for discounts and savings on things like:
    • Grocery Stores — look for rewards programs or coupon clubs.
    • Car, Renters, and Homeowners Insurance — ask your Wawanesa agent if you qualify for discounts.
    • Internet, cell phone or cable providers — Speak with a representative about lowering your rates or switching to a less expensive plan.
    • Following these six tips should have you spending less and saving more so you can reach your financial goals.

 

 

Disclaimer: The above content is for informational purposes only and is not a direct representation of coverages offered by Wawanesa or its policies. The information does not refer to any specific contract of insurance and does not modify any definitions, provisions, exclusions or limitations expressly stated in any contracts of insurance. All references within the above content are illustrative and may not apply to your situation. The terms and conditions of the actual insurance policy or policies involved in a claim are determinative as to whether an accident or other loss is covered. To understand the coverage under your current policy, please log into the account management platform to review your policy or contact an agent directly.

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