Saving can be tricky, especially when the economy seems to be taking a dig at your mediocre income. That said, if your wallet is currently empty, perhaps it is time to reduce your spending and become frugal.
Now, we love that high you get from impulsive shopping as much as the next person. However, it can be quite a dilemma when you realize that you can’t pay your credit card bill this month because you used your savings to buy that new wallet from a luxury brand or the new Gaming PC everyone has been raving about.
Continue reading to find out how to reduce your expenses and save money.
1. Become Friends with Budgeting
Every time you read an article about saving. The first tip will be to start budgeting. This is the easiest and the best way to cut your spending. This method will help you save money by tracking where it goes.
To start budgeting, you must list your expenditure and categorize them to track them easily. At times, the money we spend on taking an Uber or buying snacks goes completely undetected because we do not keep track. Hence try budgeting to see where you need to make the cuts to save money.
2. Keep an Eye on Your Accounts
Regularly going through your accounts will help you visualize your financial condition. Knowing how much funds you have, how much you owe, and what your savings are is essential.
Make a habit of going through your account details every few months. Once it becomes a habit, you unconsciously consider your financial situation when making a big purchase. That little thought can be enough to stop yourself from making a dent in your funds.
3. Dream a Little Dream of Certain Goals
We find that saving up for something can make you reduce your spending. Plan some goals and remind yourself of them when you are going shopping or getting groceries.
You can put sticky notes around the house, such as on the mirror, on the back of your front door and next to your keys, and even in your wallet so every time you are heading out, grabbing your keys, or taking your credit card out from the wallet, you will recall your goal. Keeping your goal in mind will help you reduce your spending.
4. Don’t Count Your Eggs Before They Are Hatched
Some people spend large amounts of money when they know they have some money coming in. For instance, you did some freelance work, and you know there is $500 coming in the next 2 weeks. So you buy a new couch for the living room.
Logically, you may be right about the money coming in. However, it is not a good solution because you will have new needs to fulfill in the next 2 weeks, such as laundry, groceries, or the rent. This also makes you spend more than you normally would. Hence, don’t count the money that hasn’t arrived in your account or the cash that isn’t in your hand…yet.
5. When in Doubt, Make a List
How often have you gone to target for groceries and gotten way too many things? It is pretty common for a lot of people. Hence, we suggest making a list every time you think you might spend too much. Only buy items that are on the list.
Also, avoid places that do not have things on your list. For instance, if you are out to buy some shoes, do not go to the clothes aisle. It is quite simple and only requires a little restraint to save money.
6. Giving Yourself a Ticket for Spending Extra
Humans are bound to make mistakes, especially when trying to eliminate a habit as fun as spending money. In order to reduce your spending, you must penalize yourself for spending extra. Every time you dig into your saving to buy something, push your next wish list item down on your priorities, reduce your budget for snacks or cancel a hangout with friends.
Remember, this is not a punishment. This is a way to break your habit and cut your expenses so you can do bigger and better things in the future.
7. Don’t Push It to the Limit
When you start budgeting, you will be left with a certain amount to spend every month after paying all your expenses. Now, this amount may be a three-digit figure that lights up your life or a double-digit figure that puts the lights out. Either way, it is better to put this money away into your saving, or at least some of it.
Just because you have some dollars to spend doesn’t mean you need to push your budget to the limit. Save a good portion, especially if you intend to cut your spending. Only some of it if there is something not so expensive you have had your eyes own.
8. Stop Flexing Your Credit Card
When we go out for chores, shopping, or hanging out, we spend more than we mean to because we know we can. Still, carrying cash is a much better way to save money than taking cards everywhere.
When you know you have access to more money through credit cards, you are bound to spend more on things you don’t need. So, to cut your spending, it is better to carry the amount you need in cash and only buy the stuff you are out to get.
The Bottom Line
If you are serious about becoming frugal and reducing your spending. You must understand your financial conditions. If you do not have the luxury of spending too much on your elite lifestyle, perhaps it is time to make some big choices and cut your spending.
Budgeting should always be your first step to familiarize yourself with your situation and work along the way to cut your spending. In our opinion, saying farewell to your credit card for some time will really help you gain your savings and cut down your expenses.
Remember, giving yourself little rewards from time to time is okay. Depriving yourself will only lead to sulking, and you will eventually spend much more than you usually do.
