How to Change Your Spending Habits

March 8th, 2017 | Author:

[M]ost people who spend too much know it. They run into the store for paper towels or a gallon of milk and come back with two or three bags of stuff. Every time they sit down to pay the bills and see they don’t have enough money to cover expenses, they promise never to splurge again. It’s a promise they keep until the next opportunity arises.

If this scenario sounds all too familiar, learn how to change your spending habits so you can enjoy financial freedom.

Set Up Automatic Savings

For some people, putting money aside in a savings account is just a goal they set for the future. Every time they plan to save money, something catches their eye that they must have. To prevent this situation, set up automatic transfers to your savings account. The money comes out on payday before you have a chance to spend it if you set the date of transfer to coincide with your pay dates.

Even though you can still withdraw money from savings, many people are less likely to do it than if the money is sitting in a checking account.

Pay with Cash

You’re less likely to go over your budget if you only carry a certain amount of cash. Leave your debit cards at home and only take the amount of cash you need for specific expenses. For instance, if you’re just buying a gallon of milk, you only need to take $5 in the store with you. While other items may catch your eye, you won’t be able to buy them.

This tip means you will have to make a second trip to the store if you really want to buy something extra. Since much of the spending is spontaneous, you won’t be tempted once you leave the store.

Get Rid of Credit Cards

Cut up your credit cards, so you won’t be tempted to use them. You can leave your credit accounts open to help you establish a long credit history and improve your credit score, but you won’t use the cards and increase the balance.

If you follow these tips, you’ll find you can break bad spending habits.

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