If you are like many people, the new year brought a resolution to reduce your spending. Whether you need to cut back a little or totally revamp your budget, having a strategy (or two) in place can help you to successfully accomplish your goal and make it a reality, instead of another broken resolution.
Here are a few ideas to help reduce your spending:
Ditch The Credit Card and Vow To Use Cash
Switching to a cash basis for your purchases can really help you to nip the spending bug. You take out the amount of cash you want to spend and when it is gone, it’s gone. This is especially effective for grocery expenses, dining out, and entertainment related expenses. By actually seeing the amount of cash you have diminish with each purchase, you’ll find yourself evaluating your transactions with new scrutiny.
Make It A Point To Shop Less
Make a commitment to stay out of the stores. If window shopping is too much of a temptation then forego that too. Reduce trips to the grocery store by making a list and limiting yourself to one trip per week. Trade your shopping habit in for a good one. Take up walking or hiking. By replacing a bad habit (impulse spending) with a good one (exercise) you’ll accomplish 2 goals at the same time.
Remind Yourself Why You Are Cutting Expenses.
Are you saving for a down payment on your first house? Maybe you are saving for a new car. Whatever the inspiration for your desire to spend less, that inspiration can help you stay on the path to reduced spending. Try carrying a reminder of your goal with you. You could carry a picture of your dream house or car with you wherever you go. Then, each time you open your wallet to purchase something, you’ll be reminded about your goal. Is the item you’re about to purchase worth delaying your goal?
