The Best Ways to Curb Your Spending Habits and Save More

The Best Ways to Curb Your Spending Habits and Save More

Are you focused on growing a healthy nest egg for the future, or are you too distracted by debt related stress? In an ideal world, we would all balance our spending with our saving, but the reality is far from it.

Many people live above their means, and saving ends up at the end of the priorities list. I’s only once debt comes along that we feel pushed to save and find some relief from the financial burden on our shoulders.

Significantly, all the stress of debt can be avoided if we consider the importance of saving much sooner. How do we curb our daily spending habits for optimal success?

Change how you spend your money:

Credit cards make it easy to overspend, but you can’t use them if you don’t have them with you. Test out the cash method and see how much less likely you are to spend it. It’s the psychology behind actually seeing your physical cash disappear.

Even if you only test this out for a week, or a day, it may help you slow down your spending. It’s easy when you’re using plastic to mindlessly swipe, not noticing how much you’re actually spending.

Track your spending:

Learning to juggle new expenses, such as car loans, credit card debt and medical care is new territory for most, and can be tough to come to terms with at first.

Start by breaking your expenses into categories like food, clothing, housing, medical care and so on, but also label each expense as an essential or non-essential. Keep track of these expenses by keeping every record of your money and you’ll be surprised at how quickly things add up.

Do this, and you’ll be more educated about how much money you actually have and spend, and how much you have left over for savings or luxuries.

Reward yourself:

There is usually a reason for developing bad spending habits, which are often adopted without even realising it. So if you’re suddenly balancing your bank account every day, or regularly putting money into a savings fund, it’s good to plan and give yourself some sort of prize.

You don’t want to undo all the progress you’ve made, but setting aside a reasonable reward like maybe a new pair of shoes, a nice meal out or going to the movies.

Growing a healthy nest egg for the future doesn’t need to be complicated, chat to Louise on 1300 LYFEGROUP or email her here to set up a one to one for further advice on financial freedom.

Share

Recommended Posts