How to Stop Spending Too Much Money

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I, an ex-spender, would have said two and a half years ago that I don’t mind spending money as long all of my basic needs are covered. I was even spending money I did not have. Let’s face it: from the moment we wake up until we go to bed, we are surrounded by marketing items that appear to cater to the specific demands of consumers.

Now, as my family grows and we prepare to buy our first home, it’s evident that whatever I was doing wasn’t working. I needed to come up with a way to stop spending too much money.

Here are a few strategies I used to keep my spending under control.

SHIFT YOUR MINDSET

Your financial mindset transcends beyond your personal and professional life and impacts your overall feelings about money. If you’re a huge spender, don’t blame yourself. Why? Because our culture and surroundings have a huge effect on how we approach money. Not to mention the various payment options available.

There are a few things you can do to alter your mentality:

+ First, don’t waste your time seeking for items you can’t afford.
+ Surround yourself with people who share your values.
+ Do not strive to outdo your neighbor.
+ Make the most of what you’ve got.
+ Stick to a budget.

However, you must first have a strong desire, control, and work for your future self in order to modify such conduct. Yes, we have no influence over some things, such as the stock market or the overall economy, but you do have control over your savings, spending, and priorities.

For instance, money was never something my parents liked discussing. They will simply tell me whether or not the goods or service I want is affordable. I remember, when my dad needed something that wasn’t covered by his household budget, he’ll work longer hours or take on a second job to fulfill his needs. 

I grew up hearing the French proverb “Le travail c’est la liberté,” [“Work is freedom”] which I still believe to be true. But it wasn’t until I found the financial independence movement that I realized that working for the rest of my life was not an option.

CREATE AND FOLLOW A STRICT BUDGET

Budgeting can be intimidating for people who have bad financial habits. It’s not as horrible as it sounds, and it’s simple to make. It’s worth remembering that there is no such thing as a “one-size-fits-all” budget. But then again, it is critical to comprehend its importance.

Take a peek at my budgeting worksheet, and I’m confident yours will be unique.

Because I’m old school, I don’t forget about my excel spreadsheet. There are, however, a few budgeting apps like MINT and YNAB that you may use, and I’ve tried them myself.

FORGET ABOUT USING YOUR CREDIT OR DEBIT CARDS

Our national debt of $28.5 trillion is caused by a variety of sources. It’s no surprise that credit cards rank in fourth place in the Debt table, directly after student loans.

Keep your credit cards at home if walking with them in your wallet causes you to spend on impulse. Withdraw a reasonable amount each month to cover your expenses. For example, I used to take out enough money to cover my gas and spending money. Now that I pay for fuel with an app and get points, I keep a set amount in my checking account.

With this in mind, if you have many credit cards, keep the one with the maximum credit limit somewhere safe and destroy the others. Do not phone your credit card issuers to request a credit increase nor to cancel your cards. Doing so might cause more harm than good as it may affect your credit history and your debt-to-ratio. 

Related: Here are 4 misunderstandings about credit cards.

CREATE A STRATEGY AND SET IT TO AUTOPILOT

Living within your means is a life hack, regardless of whether you just got a promotion or make more money from your side hustle. One way to make it possible is automate everything. Have a portion of your direct deposit paycheck automatically deposited into your savings account and pay bills.

You will be compelled to work with the funds in your checking account if you do so.

I’ve been sticking to a strict budget for the past two years. This strategy has really helped me in reducing my debt. The best part is that it no longer feels like I’m budgeting.

FROM TIME TO TIME, PUT YOURSELF TO THE TEST

I’m sure you’ll think you don’t have any more room to save after setting a budget. That is when the real difficulty begins. Let’s give it some more thought:

Would you be able to save money if you cooked more at home? It’s healthier anyway.

Do you really need to subscribe to all of these streaming networks, for example? Start by unsubscribing from the one you use the least for three months before moving on to the others.

Is it really necessary to have the most expensive phone plan? Examine your monthly data usage and, if a cheaper option to pay for what you need is available, downgrade your plan. If not, take a look around.

You’ll be amazed at how much longer you can go without them.

SET GOALS

Now all I do is set goals.  it’s really no surprise that I’m always broke.

I needed to make a goal in order to deal with my debt. Many of my bad behaviors had to be broken. I had to stop buying stuff like liquor every weekend,   shopping online just because I believe I need something when it’s really a want.

It wasn’t an easy task at first. However, once you’ve completed a few short-term obstacles, long-term goals become more appealing.

As I previously stated, we are now planning to buy our first home, and the only option for us to pay off debt while saving for a down payment was to set a goal.

MAKE MORE MONEY

I enjoy the notion of having seven various sources of income, but if it means I won’t be able to spend time with my family, that’s not for me.

Now, if I could simply set them in motion without requiring my presence all of the time. It’s something I’m all for.

Want to make more money but you’re not sure where to begin? Well, tell me what you like to do in your free time, and I guarantee you there’s a customer awaiting your service.

FINAL THOUGHTS ON HOW TO STOP OVERSPENDING

It is not simple and will never be because it requires numerous temporary sacrifices. However, in the long run, it will be an incredible gift to yourself and your family.

Stop spending too much money on things you have control over.

If I could do it, I’m confident you can as well.

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