5 Steps to Control Your Spending
The idea of a budget is good in theory but if you do not learn how to control your spending, a budget is not going to do you any good. I think of a budget similar to when I try to lose weight. The only way I can lose weight is to keep track of the calories I eat and not go over my “budget” of calories. Now, if I’m tempted to eat something I shouldn’t, I can always start my diet over the next day. I can’t be the only one that does that, right? It’s a little harder to do that with money. Once the money is gone, it’s gone. It’s not as easy to “start over” the next day. So, it’s important to realize that money, your money, is finite and there isn’t an endless supply of it out there that you are going to stumble upon. You may not always be able to make more. You never know when you could suddenly become disabled or unable to work anymore.
1. Get Rid of Credit Cards
So, how do you control your spending? The first step is to vow not to go any further into debt. In order to make progress with budgeting and getting out of debt, you don’t want to dig the hole any deeper than it already is. In order to do that, you should cancel ALL your credit cards. You do not want to be to be tempted to use them. If you know you don’t have them as a back up, you will work harder to come up with ways to get what you need when you need it. Studies have shown that people spend around 20% when they use a credit card. So, if you don’t use a credit card, you are more likely to spend 20% less. You are also more likely to spend less in general if you know that you don’t have a credit card as a back up.
2. Use Cash
I have talked about using cash several times already but it is important when trying to control your spending and to stay on a budget. When you have cash, you spend less. It is harder to part with cash than swiping a card. Psychologically, handing cash over has a much different feeling than swiping a card. It’s much harder to keep track of what you have already spent when using a card. I know that I used to wonder how we spent so much over a weekend without realizing it. It may have only been $20 here and $20 there but by Sunday night, it added up to a couple hundred dollars usually. Now that I use cash, I don’t have moments like that, at least not very often.
3. Have a Written Budget
I feel like I’m beating a dead horse with this one, but when it comes to saving money, paying off debt, or not spending as much, having a written budget it imperative. If you have a budget written down, you are less likely to over spend. When you write something down, it becomes real. Whether it’s a budget, goal, shopping list, or whatever, you are more likely to keep to and achieve it, if it’s written down. To learn how to create a budget, see my previous post.
4. Have an Accountability Partner
Having an accountability partner will help you achieve your goals because you have someone to answer to if you start to stray from you goals. This person can help you remember what your goals are if you start to contemplate spending money you shouldn’t. They can help you avoid situations where you would spend money on something you shouldn’t. Hopefully this will be your spouse or significant other but it could also be a good friend or family member. You need someone to share your victories and struggles with. It will be hard to stick with the plan if you are doing it by yourself. Now, some people are natural savers so it won’t be as hard for them but the natural spenders will really struggle without someone to turn to.
5. Avoid Stores
This may seem obvious but if you want to save money, avoid stores. This includes online stores. When I got really focused on paying off debt, I avoided the mall, canceled Amazon Prime, and unsubscribed from numerous email newsletters. It’s hard to save money when you are constantly being bombarded with “good deals” and “limited time” offers. What I learned through this process is that the “deal” really isn’t a deal and it will be that same price again soon. If you avoid places that take your money, then naturally you will keep more of it. If you spend $200 so you could save $80, you still spent $200. You have to change your mindset and way of thinking if you are going to be successful with your money.
I just found your blog, I’m excited to read through everything and use your tips!
These are great tips! I’ve declared February a no-spend month. I just started a finance blog and would love to hear your feedback! Not to hi-jack your comments section, but please feel free to read my post and join me on the no-spend month! Your tips will help keep me on track! #PostsFromTheHeart
http://www.fabfunds.com/no-spend-month/
Thanks! I haven’t done a no-spend month. I need to but I don’t have much stockpiled to do that.
I needed this! I just wrote down my budget yesterday hopefully that is the first step!
That’s great, let me know if you have any questions or need help with it!
Great tips! Thank you! Very similar to Dave Ramsey. One I haven’t heard often is avoiding stores including online stores.
Do you have any suggestions on accountability partners for a single person?
I am a huge Dave Ramsey fan. I would suggest finding someone you respect and have the same financial principals as you do. It could be someone at church, work, or family member or friend. You want someone that is going to give you good advice and make sure you are following the plan.
I don’t really talk about finances with people, though this reminds me that there are financial coaches available for free or low cost as a benefit from my employer. I’ll look into that.
This is great, I really need help with budgeting so I will be trying these tips out! Thanks
thanks!
I have basically had to sit on my hands during January to stop me spending. Someone once told me to put my CC in a bowl of water in the freezer. I havent tried that #postsfromtheheart
very practical list. Identifying where you are most likely to spend money poorly is also essential. I know for me it was boredom and high stress.
I liked this list and thought you had some great tips on it. Keeping an accountability partner is a huge help, as is taking the time and committing to writing things down. But when I got to that last one and saw, “Avoid Stores,” I literally busted out laughing.
So common sense, but like you said, so many people don’t think of it!
Once we started using a financial planner our spending controlled itself. To be able to see exactly where your money went it is easy to create new spending habits.
goddd i needed this badly.thanx for sharing such great tips. I hope i can stick on them 🙂
I think this is very helpful. I use some of these tactics to cut down on my spending as well. My wife is my accountability partner.
This is so helpful. It would be nice to have a buddy who would check your spending and also help you control it as well. If you overthink the budget, you’re going to feel pressured. It’s best to just go over it and follow it religiously.
Some great tips here. I find budgeting each month (ok, my husband does it!) really helps keep a check on our expenditure.
I definitely agree with the cash aspect, but I can’t get myself to do that! I feel as if I’m losing out on “points” when I am using cash on items that I can swipe on the card. It’s such a hard concept for me to get through my own mind! I know it works, but I just want better self-control… Then I don’t have that! OMG, sorry for my personal rant! Thank you for sharing! I love all the ideas! Hit home to me, xoxo. 🙂
haha number 1 is to get rid of credit cards, as Target continues to increase my spending limit. I got credit cards because I really needed to build up my credit, now that my score is decent it’s time to go back to cash!
These are really great tips, I need help saving and staying on my budget. Thank you!
These are great tips, thanks for sharing them. It is important to stick to a budget! If only I could get my husband to stick to our budget 🙂
YES! I had to cancel so many because it was way too tempting!
Great tips!!! I’m all about online shopping and do almost all of my shopping that way! I’m waiting for the day we get online grocery around here so I really can save!
My mom needs this…She’s constantly running around stores, buying stuff we don’t need and later complain how tight the budget is …. Too bad she dosen’t understand English.
YES IT DOES! It is really amazing how different it is.
Great Tips. We have been following Dave’s Plan for years. We were able to get out of debt, but staying on the budget is the hardest thing, with so many unexpected bills popping up and not always having enough to cover them.