One of the common troubles we all have is that we spend more than we should and that's why it is not a surprise that many people ask questions like How to Stop Spending Money. Well, we got a brief yet easily workable guide for you.
Money is an essential commodity that also happens to be the biggest priority of life. We live in a day and age where nothing is possible without money. If you want to get educated, you would need it. If you wish to travel across your regular boundaries, you would require it again. Most importantly, to feed yourself, to put on clothes, to have a shelter, you would be desperately requiring money. There are arguments regarding a lot of things but you cannot argue on the fact that nothing is more important than having your pockets filled with cash.
But more than earning money, it is about how you spend the same. There are people who earn a little but are able to save more money than they spend. While there are others who get a fat paycheck and lose all of their balance within a couple of weeks and can't survive an entire month. Saving money is an art in its own rights. But how are people efficient at saving money? How can people spend a little amount and keep increasing their bank balance?
How to stop spending money?
Here are a few ways that can help you out in this regard:
1. Penning down the expenses
First of all, you need to have a plan. Unless and until you plan on what you want to do with the money that you get, it is not possible for you to estimate exactly how much of it you require and what percentage of it can be kept as savings. Most people have little expenses to make in life but they tend to spend more than that on unnecessary things which can clearly be avoided. Sure, you can use the money for other stuff too. But the first thing that you have to do at all costs is to know what your expenses look like. It will include your monthly ration, electricity bills, cable TV bills, petrol expenses, etc. You can keep the maximum extent to which these important costs would go. Based on the list, you would get a picture of how much money you can save and use.
2. Prefer walking
This is a sad reality that no one likes walking in today's world. The environment around you is so fast that you want to match up to the pace. You use your car or bike to reach places as quickly as possible. But do you realize how much it affects your saving habits? Most people are required to refill their petrol or diesel tank once a week. It keeps on increasing your payments but your income remains stagnant. The worst part is that you don't even realize how severely it impacts your bank balance. If you have to go to a distant place then you don't really have an option other than using your vehicle. But if you are required to go to a place which you can reach by walking easily then you shouldn't give it a second thought and walk on your own. It also keeps your body afresh and is a very important exercise. It's a win/win all the way for you.
3. Setting saving goals
A good option would be to decide your savings way before you start spending your income. The saving limit will be like a red alert which you cannot cross until you get your next monthly salary. Everyone wants to achieve something in the future. Someone wants to buy a car and some other person would want to tour abroad. Sadly, you would require lots of money in order to achieve such goals. Based on what you want to buy and when you want to buy, a rough estimate can be made regarding how much money you would be requiring at that point in time. Divide it by the number of months and you will get an amount. The next step would be to decide if you want to save that much money within a month or a couple. Once you're decided on that front, you get your saving limit. Although it's not important that you cannot breach past this limit, it will still set a goal in your mind. It will at least let you think if you're spending too much or not.
4. Making food yourself
When you eat food outside every single day on more than just one occasion, it has a drastic impact on your earnings. This happens especially when you're living alone. When you reach home after a 9 to 5 job, your whole body sort of gives up. You tend to make it a norm that you will eat outside and never cook food at your place. When you do it consistently, it becomes a habit. Now there was no problem if you ate food outside once or twice a week. But when you are doing the same thing every single day, it is going to drain your money by a landslide. Now that you decide to cook your food by yourself and take the lunch box with you as well, you wouldn't have to bear half as many expenses. It is automatically going to save you a lot of your money. Also, it will become a routine in your life to cook food on your own. The lazy behavior will slowly perish away at the same point of time since cooking is a really interesting habit to develop.
5. Giving away useless stuff
You might not notice it already but when you realize, there are always going to be a handful of things that are no more of a use to you. You can try to sell it off and earn some more money with you on online flea markets, for example. The more your balance, the more are your chances of saving a particular amount of it. There might be furniture including chairs or utensils which you bought a long time back as you were interested to use it. But over a period of time, you have stopped using such items. It is difficult to let go of stuff from your place, especially if there are emotional attachments with it. But when you give it a second thought, such items wouldn't really benefit you in any way if you keep it with them. But when you sell it off, you can earn a handy price from it.
6. Less use of the credit cards
To some people, credit cards might seem like a blessing in disguise. But as you use it consistently, it may very well become trouble in paradise. There are a lot of benefits of credit cards, no two bits about it. You are not required to carry cash with you when you have a credit card. Especially when you're looking to buy something for a whopping amount, there's no great alternative to credit cards. But when you realize it, there's a huge amount of interest to be paid on something you bought with the help of a credit card. This is directly detected from your bank account which immediately affects your bank balance. One mistake that you may make is using credit cards for smaller expenses. You should be using your debit card or cash in hand while buying groceries and related stuff. The less you use a credit card, the better it would be in the process of spending less money.
7. Borrowing from others
There's nothing wrong with borrowing things from your neighbors or friends for one-off occasions. For example, you are supposed to go to a meeting which is really important. Now in order to look perfect to attend the meeting, you might be looking for quality clothes which can leave a lasting impression on the other party. If you don't have a nice 3-piece suit in your closet, you might be looking to buy it. You don't even want to wear that dress code again. So why not borrow the suit from your friend who might be having the same exact clothes that you would like to wear? There's no harm in it and it will be an intelligent move too. You don't have to spend dough at all and you can return it back by washing and ironing the suit, just to make sure it is the same as when you borrowed it.
8. Increase your bargaining power
Most of the items that you buy can be bargained. Each time you go to buy something that has a chance of bargaining, don't hesitate to make the call and do the same. You might feel like it doesn't make a difference but when you try to settle a lesser price with most of the commodities that you buy in a given period of time, it saves a lot of your money when you might not be even realizing it. Sometimes the retailer might hesitate your bargaining to his level best, just do not step away until he says yes regarding the decrease in the price. When you keep doing it and reflect upon how much money you have saved, there will be a realization regarding the effectiveness of bargaining power.
9. Make a shopping list
When you go to a shop, you might be going to buy some specific items and bring a lot more of them. This happens when you don't go to a shop with a plan. When it keeps on happening from time to time, it definitely checks your money in a big way. It's not hard to make a shopping list. It might take a lot of your time but it allows you to figure out your expenses quite well. When you look at your shopping list, you can decide what item should be bought at what price. You might be using a lot of those commodities every month which are not really needed. There are times when you buy an item in more quantity than required and it becomes a waste after some time. You will eventually have to throw it away. So making a shopping list can put everything in order.
Do it yourself, that's exactly how you can save a lot of your money. If you live a city life, you would know how much expenses you have to bear in order to get rid of some issues. For example, there is an electrical problem at your place. This is a minor problem that can be solved quite easily. But you rather call an electrician to do the job. Even if he has to do nothing, he is still going to charge you a decent amount. If these sorts of problems pile up and you have to call someone for help all the time, it is always going to increase your expenses. Just do it yourself and don't be concerned about if you can repair it properly or not, at least give it a try. Do it yourself activities can include ironing your clothes, fixing your television, bringing a gas cylinder to your place on your own, and all such stuff. It doesn't take much of an effort and is a refreshing change in your life as well.
11. Give up on brands
Everyone wants to live a lavish lifestyle, but at what cost? There's nothing wrong with wearing branded clothes. In fact, it sets you apart from the rest of the world. But you have to understand that branded clothes will always require you to pay an extra cost. It is the same case in terms of your eating habits as well as technological products. It is not important that you only buy branded products, what's more, important is that you buy quality ones. It would require you to analyze before buying something. Like when you go to the market and buy some food item, look at its ingredients. You need to have a common sense regarding what ingredients are required in a particular food item and what is not. There are many quality products that can exceed branded products in quality but they just don't find their market. It's not wrong going after brands, what's wrong is the incredible waste of money you make while buying that particular product from a brand that you could have used otherwise.
12. Canceling your gym membership
Going to a gym is a great routine that one can make. When you go to a gym on a constant basis, you make a huge growth in your body. But gym membership can cost you big time and you may realize it every day as well. Most of the time, you are not even going to the gym. You bought the membership cause your friends bought it while you have no interest in gyming and toiling hard to achieve a fit body. Even if you want to be fit, you can exercise sitting back at home. If you have a bicycle, it is going to be a great exercise running it. You can buy weights and lift them sitting back at your home. It is going to cost you way less than a gym membership which is required to be paid every single month.
Q1: Why am I making too many expenses a month?
The major reason behind you expending too much money is that you're spending it without a plan. You need to get a plan in the time to come so that you don't make the same mistake again.
Q2: Can I save more money at the very same income in the times to close?
You definitely can save your money. As you grow, your wants kind of soar higher as well. If you can cut off on some of these wants, you can save a hell lot and spend a lot less.
Q3: How to keep a check on if I am spending my money nicely or not?
You just have to sit back and look at where you have spent the money in that particular month. It will give you an idea if you have made the right choice or not. It can give you an evaluation for future expenses as well.
Q4: What are some of the common mistakes People make while spending money?
The most common mistake is buying something that doesn't hold value and will not be used properly. You just have to make sure that you want to use a particular product and haven't bought the same just for the heck of it.
Q5: What are some of the common solutions in order to stop spending money?
First & foremost, you need to stop using your credit cards unless there's a big payment awaiting you. DIY is a great solution to it as well. If you spend having a plan in your mind, the costs will definitely be very limited.
Conclusion: How to cut down expenses
It is easy to spend money when you have it in plenty but it's far more difficult to not have much of a bank balance for the most part of a month. In some cases, savings become a must as well. It is about being just & fair while using your money and things will definitely change ove a period of time!