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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:
The goal of a budget is to give each dollar you earn a job so you're not spending more than you make.
- Start by tracking your spending in a spreadsheet or document so you know how much you usually spend per month.
- Calculate your total monthly income — from all sources.
- Add up all your monthly expenses — such as rent, car insurance, bills, and card payments.
- Subtract your expenses from your income.
- A positive number means you have extra money for saving. A negative number means you need to cut expenses.
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.