Overspending is a common habit a vast majority struggle with and puts many people in tough financial situations, like with high-interest debt. But it can be challenging to stop spending because everything is so accessible. Thanks to technology, it makes buying something just a simple click away.
And while I love the convenience factor, it’s incredibly easy to go overboard without even realizing it. So what is one to do? Here, I’ll talk about how to stop spending money and tips to get you on a better financial path.
1. Learn to wait before purchasing (sleep on it)
This will not happen overnight, but you’ll need to master self-control. What I’m talking about here is delaying gratification for the sake of helping your finances. Instead of immediately purchasing something because you must have it, wait. Sleep on any purchases first or give yourself 24-48 hours and then decide.
Typically, the rush of wanting something will subside or you realize it’s not that important to buy right now.
2. Figure out why you are overspending so much
Sometimes, you just need to analyze your spending situation and life. What is causing you to want to spend money all the time? Why must you feel the need to buy, buy, buy?
Maybe there is stress in your life that the spending calms that down. Or maybe you really just don’t realize how often you are spending money. In order to stop spending money, you have to start looking for the root cause.
3. Legit track all your expenses
Many times the problem just stems from not understanding all your expenses. If you have no clue what monthly income you have and where your money goes, it’s easy to overspend. Get every expense and income in a list, then do some basic math.
4. Leave the credit cards at home
One way to really stop spending money, is to leave the credit cards at home. When you go out, it’s easy and very tempting to spend if you have a credit card. There is no real money value being seen, so swiping the plastic has no impact on you. That is, until you see the bill later and the interest you are accruing.
Another thing you can do is treat your credit card like it’s a debit card that is directly tied to your money. If you can think of a credit card as not your money, then it may help you keep it in your wallet. This works depending on your current mentality, but if you think that won’t work then definitely leave the credit cards at home.
5. Avoid stores or online stores that trigger impulses
We all probably have a store or online store that we love. These are also the stores that get us in financial trouble and trigger our impulse to buy. And while those stores do have solid deals, if you can’t stop spending money then you need to avoid these places as best you can. Sure, online shopping is challenging since the access and one-click is so easy. But if that is the case, delete your login or remove your credit card info to help stop quick purchases.
6. Create a savings challenge for yourself
I think one of the best things you can do is create a savings challenge for yourself. It keeps you focused on your finances and a goal that you have in mind.
Treat it like a game if you must, but I’ve found this to be really help in the early days. After I ran my own numbers back in 2014, I set a few different goals or “savings challenges” that I wanted to reach.