The best way to save money is to cull expenses. This statement does not imply that you stop enjoying life altogether but can be construed as being more financially savvy and therefore decreasing unnecessary expenses. Here is a guide to reducing your spending and making some savings.
1. Track your expenses – Maintain a budget and keep tab on your expenses. Your budget can be as simple as having a written account of income and expenses on a diary or more sophisticated in the form of an excel spreadsheet or a budget planner. Learn more about budgets by reading Budgeting: Tips to Set Your Goals and Budgeting: How To Create A Budget.
2. Avoid impulse buys – If your heart has taken fancy to a beautiful bag or if your heart has fallen head over heels for a pair of designer shoes then procrastinate the purchase of that item. Do not engage in impulse buys. Take some days or weeks to mull over the necessity of owning that item. If you procrastinate the purchase, you may come to the conclusion that you can certainly do without that item and therefore, do not need to purchase it. However, after a week of so if you still feel strongly about that much desired item then you should consider purchasing it. This approach will ensure that you significantly reduce impulse buys. Further, as your weigh up all the pros and cons of buying that item that specific item may go on sale and end up getting you hefty discounts. It is a win-win situation for both your heart and your wallet.
How To Reduce Spending: Avoid impulse buys
3. Sales are not your best friend – Just because a sale is on does not mean you have to jump on the band wagon and make some purchases. Sale is that magic word which gets all of us tingling with excitement and imbued with the desire to bag fabulous discounts. It is easier said than done but try to muster up all your self-control and avoid the trap of sales. Let’s face the truth. Just because something is on sale does not mean you need to have it. Just because you could be making some savings on the price does not equate to the fact that it is a must-have item. Pause, reflect and make an informed decision as to whether you should buy things just because they are on sale. As discussed above, unless the item is a much-desired or much-needed object then veer away from sales.
How To Reduce Spending : Sales are not your best friend
4. Have a meal plan – Plan your meals for a period of time. Whether it is for a few days or a week, planning your meal will contribute towards boosting your finances especially if you concentrate on utilising items in your fridge and pantry.
How To Reduce Spending : Have a meal plan
5. Implement a no-spend month – Raid your clothing cabinet or drawers and choose an item you buy frequently. It can be shoes, bags, socks, concert tickets etc. Once you have selected a particular item then commit to not pending any money on that item for one whole month. After the initial reluctance of your mind to accept such rules, you might find that slowly you have stopped missing that item and eventually get into a habit of not forking out extra dollars for that item in the future. The money you will save by adopting this tip will bolster your wallet (both in the short term and long term) as well as giving you some delightful peace of mind.
How To Reduce Spending : Have a no-spend month for a specific item