We all have bad spending habits.
Some might love to have the newest iPhone.
Some might go shopping for clothes every week.
Some always want to dine out instead of eating at home.
Bad spending habits often make us break our budget. They prevent us from saving more (we know how dangerous it is when it comes to an emergency and we have no saving money). Even worse, overspending often leads to debts.
But it is the story of 2016, this 2017 we will break all the bad spending habits and control our money. Take these tips to start planning your spending now!
1. Review your 2016’s spending habits
To start keeping track of your spending this year, it is better to know your last year spending habit.
Take a pen and a notebook to write down what were the biggest things you have bought. And what about other things, do you know what you have spent the most money on? Can you estimate the amount of your cash outflow this year? Can you cut down on some of your spendings?
If you have already had a report on how much you spent on each category (bills, dining out, lovers and friends etc.), you might be surprised by the amount you have spent on some unnenessary items.
This year, the first step to avoid overspending is to track your spending. You can use Money Lover to record all your transactions in the simplest and fastest way.
2.Create a budget
As you have known where your money is going, create a budget. Set yourself a limit on each category, for example $100 for dining out, $100 for new clothes. If you need advice on how much you should spend and how much you have to save, try reading The jars system money management of T.Harv Eker.
3. Take only enough cash with you
If you are going to the grocery store and you plan to spend only $50, take only $50 with you. Leave your credit card at home. You will only buy what you need with your planned money.
4. Set realistic goals
You might find it hard to stop buying things like coffee and snack as they cost so little. But little money adds up. Set a long-term saving goal to know what you are saving for. If you want a fancy dinner every month, it will be reasonable to cut down on some of your daily spendings.
5. Get your shopping list
How often do you go to the supermarket to get some milk but you go home with milk and chewing gum? That is why you need to write down what you need to buy before going out. Stick to your list when you go shopping. You still find it hard to shop with a list? Give your friend or your neighbor your list, ask them to go shopping for you.
6. Have some BFF-shopping-time
Do you have trouble saying “No” everytime you see a cute T-shirt? It will be fun to have your best friend or a family member by your side to say No for you. You can plan your time maybe twice a week to go shopping, only when you have someone with you. They will help you not to become a shopaholic. Even when they are not around, call them and talk to them while you are shopping.
7. Leave and come back
Some people suggest that you should not buy the thing you like immediately, spend 24 hours to think about it. Some even suggest 30 days. Instead of spending money, spend your time to think if you really need the item or you just want to buy it. Ask yourself several questions: “How often will I use this thing?”, “Where should I keep it”, “How much can I save if I do not buy it”
Another year is coming, 2017 is closer than ever. It is time for us to leave all our bad spending habits behind. Wait no more, start saving and stop wasting!