We all experience money troubles or worries at some point in our lives. The truth is, switching all of your suppliers won’t make a permanent and positive change in your life if you continue your spending habits. The key is to think about everything – what’s coming in, what are your outgoings and where can you cut back. To try and help we have put together a handy trick list to help you stop spending money!
Don’t get tangled in the debt spiral
If you spend more than you earn, you will borrow to fill the gap. This can then lead to you using more of your income to repay your debts and then you will continue to borrow to maintain this lifestyle. The end result? All of your income goes towards repaying your debt, leaving you with nothing. It’s such an easy pattern to fall into but it is equally avoidable.
Avoid impulse buying
If you really want something, sleep on it for a night. This helps prevent impulse buying and if you genuinely want to buy it, you will be able to make the decision in the morning.
Compare the cost to the hours you have to work
It’s entirely natural to want to spend your hard-earned money. But let’s say you earn £5 an hour and what you want to buy costs £150, it will take you 30 hours of work to be able to afford it and that’s not taking the tax or national insurance into consideration. Is it worth a week’s wage?
Stop paying for things that you don’t use
Many of us have a monthly subscription for something but how many of us make use of that subscription? Take a look at your monthly direct debits and standing orders and question yourself as to how much use you get out of it. Let’s say you have a gym membership, but you only go once a week, you may be better off paying as you go, rather than paying more monthly.
Cut down on your food bill
Of course, food is a necessity, but planning your meals and having less waste will undoubtedly save you money. Make a weekly plan and do a weekly shop. Another tip is never to shop when you’re hungry as you will end up buying food that you don’t really need because at the time you ‘fancy it.’
Only take cash out with you
If you take out the amount of cash you’re budgeting with, you can’t and won’t overspend. If you take out your cards, you’ll be tempted to indulge and act on impulse.
Out with the old and in with the new
If you buy something new, try to sell something that you already own. Not only will this help you to spend less, but it also helps you to de-clutter.
Cutting back on spending can be stressful, but once you have your finances sorted, the struggle will be worth it. If you need a helping hand to save money and organise your finances, check out our free app. We help thousands of people every day and you can easily join them.