First, understand what it triggers you to spend. Figuring out how to stop spending money relates to identifying the triggers that leads you to spend. By removing the triggers, you will no longer have the opportunity or the temptation to spend money. When you know that it will happen again, make sure to just carry a little bit of money with you instead of hanging on to your credit card. This will help limit your spending.
Second, stop using credit cards. Credit card use is one of the main reasons why people overspend. Use cash for your next purchases to control the urge to spend more than you can afford. When you pay for things with cash, you can see how much money you have and how much you’re giving away. Paying in cash forces you to only spend what you have.
Third, spend only the available money. When I see my mother handling our budgets, the technique he uses is cash envelope sysytem. The cash envelope system is a good way to stick to your budget and use only the available money. Based on your budget, put the amount of cash that you can spend in every category such as daily needs like food, clothing, and etc into an envelope. This will force you to budget properly and not to overspend.
Fourth, ask yourself some questions if you need to buy an item. Questions like ”Do I need this item?” and ”How often will I use this item?”. If the item brings happiness or serves a purpose, then the purchase is worth it. If you think you need an item and you answered no, then the purchase can wait or you don’t need the item at all. If it is something that you will probably use once, pass on it. The lesson is that before you purchase something, give it some serious consideration.
Fifth, avoid eating out. In addition to spending less money by cooking your own meals, not eating out also means you’re in control of how healthy your meals are. Eating out is easy and it saves time but if you’re spending a lot of money on a fast-food every day, that’s gonna be a huge problem. Start by meal planning and prepping food.
Sixth, be minimalistic. Minimalism is living with just the things you really need. It allows you to see and appreciate the value of what you have. It also discourages you from buying more stuff. MInimalism forces you to separate between essential and non-essential items. Seventh, develop good money habits. Becoming financially smart is a way of increasing your savings and adding value to your life. Good money habits are all about small changes and critical adjustments in your mindset. It is also important to examine your habits to make sure that they are indeed worth it. The best thing you can do is to keep things simple and create a budget that you can stick to.
Be aware of financial hazards as you become successful. When you begin to earn a significant amount of money, it is tempting to buy stuff that reflects your current lifestyle. Learn to avoid that lifestyle to keep your spending at bay. If you start making more money or your bills decrease, boost your savings rather than making your lifestyle more expensive. Lastly, get stuff for free. If you need some items, why not try to get secondhand or ask your friends or family if you need something.