Spending can quickly become out of control, and before you know it you’re running up credit card debts, or borrowing money from friends and family. We are not naturally born with an instinct to go out and spend, but instead it develops over time. Poor spending habits are usually instilled in us from years of bad habits, constant desires, and unnecessary credit card swipes.
The first thing most people do when they realize that their money is tight is start looking for deals to try and save money. They look for any deal possible, from finding a pair of tights that are reduced because the packaging is damaged to buying unbranded foods.
Below are some brilliant tips to help you get your money under control:
1. Become a Frugal Spender
There are two different types of spenders. Spenders who don’t worry or care about how much they are spending (or how big their debt is getting) and frugal spenders who still spend money but look for discounted products. Becoming a frugal spender can be the first step in the right direction to getting your life back on track. You will become more aware of money, and it will usually stop you from paying full price for anything. Frugal spending is a great place to start, but make sure that you don’t walk around the shops buying things that you don’t need just because they’re on offer. This isn’t sensible and will not save you money.
To save a bit more money, you could look out for vouchers for things that you buy. Voucher sites are frequently updated so as long as you’re patient you’ll find the discounts that you’re looking for.
2. Change Your Way of Thinking
Why not go out and shop in a charity shop. It may show you that you don’t always need new clothes in order to find what you are looking for. Many of the items we purchase are unnecessary, so if we save our money when we don’t need to spend we could put it towards something else – like a vacation! Once you have become a frugal spender, you need to start changing your way of thinking even more. You need to become a saver. All you need to do to become a saver is question your purchases:
- Do I need this?
- Is it worth the money?
- Could I find it cheaper elsewhere?
- Can I find it second hand?
- Or, if you are buying a product to replace an item that’s broken, could I get mine fixed?
Savers are always thinking about the future, so this is what you need to do. If you spend the money you have on a designer sofa, how will that affect your money in the future? Instead, you could find a sofa that is cheaper, or even re-cover your own.
It’s important that you give yourself a realistic budget. To be able to achieve this you need to take a look at where you are spending your money. You could make an income vs outgoings chart to see how much excess money you have over each week. The most important thing is to make sure that you plan for every dollar of money and keep in mind your long-term goals.
4. Create a Fool Proof Plan
It can take a lot of motivation for a spender to change their habits. Once you have created your shopping trip budget, it is a good idea to move any excess money into a savings account to stop yourself from spending more than you should. Another great tip is to sort your money out into different envelopes. You could have an envelope for food shopping, clothes shopping etc. and make sure you don’t spend more than you have.
The process of going from a spender to a saver can be daunting, and you will likely have some slip ups along the way. Don’t beat yourself up. Instead, pick yourself up, make a note of your mistake and learn from it. Good luck!
This is a collaborative post.