How to Stop Spending Money
Are you the kind of person who when you pass by a large “SALE” sign on a store, you have to stop in and see what they have, only to end up spending money that you didn’t intend to spend? The good news is, you’re not the only one. In fact, this is a very common problem for many Americans. The bad news, this can put your monthly budget to rest and have a negative impact on your savings goals. You might want to go on a temporary spending detox or a long term spending diet, either way, we’ve got you covered. Keep reading to learn how to stop spending money!
Don’t fall for deals
When you love to shop, you’ll give yourself any excuse to shop. Did you have an unexpected windfall? You’re probably already on your way to the mall. Pair that with a big sale at your favorite store and get ready to kiss your money goodbye.
There is psychology that explains this. Whenever stores have sales typically people will spend more money overall than if there were no sale. In a study by Coupons.com, people who received a coupon saw a 38% increase in oxytocin levels and were 11% happier than those who did not receive a coupon.
But… we’re not saying all deals are bad. In some cases, we recommend shelling out a few dollars on a household essential that are on sale. Only purchase items you NEED when on sale. We don’t believe in paying full price for anything, and that applies to groceries also. Take advantage of coupons and items on sale to lower your monthly grocery bill.
Unsubscribe from Marketing Emails
Have you ever been sitting innocently at work and heard your phone chime with an email from your favorite retailer offering you a sale on an item you’ve previously looked at? How dare they! The temptation is real, and like we’ve mentioned above, the psychology makes it that much harder to pass up. In order to help you avoid this temptation, we recommend that you unsubscribe from marketing emails that might be tempting to you.
Know Upcoming Expenses
When you’re trying to stop spending money, it always seems that those unavoidable expenses tend to pop up out of nowhere. Whether it’s your semiannual car insurance payment or new tires for your car, these expenses can disrupt your momentum. Know your upcoming expenses so that you can account for them when trying to stop spending money. One recommendation is to front-load or prepay these expenses so that when your spending detox starts, you do not have them looming over your head. Need some extra help? Be sure to check out our article 13 ways to lower monthly expenses here!
Know your Needs
When you’re trying to stop spending money, it’s important to know your needs. For example, it’s probably not a good idea to go for two weeks without food to save money. To combat this, you should allocate a certain amount of money for your living expenses. Try using the envelope system to stick to your budget. What is the envelope system? As the name suggests, you will put the amount of cash you wish to spend on a certain expense in an envelope and only use it for that expense. This limits your spending on say groceries, or entertainment. You can learn more about budgeting here!
Every month, you probably have certain subscription services that charge your credit or debit card. These expenses can quickly add up and you could be throwing money away if you don’t use them. Whether is a movie streaming service, a gym membership, or music streaming you can almost always cut these expenses out of your budget to stop spending money. That $5 a month may seem harmless, but adds up over time! Need help finding your subscriptions? Truebill can help! This app can help find subscriptions that you might not be using and help you to cancel them, giving you no excuses.
Plan Plan Plan
When you start your spending detox, it is recommended that you plan everything. From what you will be eating, to managing your upcoming expenses, this will help you to avoid financial mistakes. Planning your meals in advance will lower the chances of stopping by your favorite fast-food restaurant after a long day at work.
When you decide to stop spending money and go on a spending detox, you might become overwhelmed. The cold turkey feeling might not sit well with you or your significant other but with the right preparation, anyone can do it. By following this guide, you can keep your momentum going and reach your financial goals.
We want to hear about your spending detox! Tell us your most challenging and favorite parts below!