If you’ve had an indulgent summer, you may be facing credit card debts, overdraft charges or a lack of free cash as a real problem right now. It is hardly surprising, with the cost of travel increasing, holiday spending can get completely out of hand. It is also hard to be strict about stopping spending when you are on holiday in the summer, as you feel you have worked hard all year and ‘deserve’ that treat.
Now we are heading for September, you may be looking forward to Christmas, another expensive holiday. If you don’t want to be in the same situation again and want to know how to stop spending money, then here are 5 tips to get you started, we’ve borrowed some of these from this guide to help you stop spending money and we recommend you give this entire post a read if you’re serious about cutting down your spending.
#1 – Figure out what your triggers are
You will probably have a vice which always catches you out. Whether this is clothes shopping, food, shoes or expensive watches – you may need to figure out what your triggers are so that you are able to actively avoid them moving forward. My Money Coach says that the time of day you shop may even have an impact on how much you spend; “Do you find that you have more energy during certain periods of the day? If so, shop during times when you have more energy and feel less stressed. You’ll make wiser spending choices and think more rationally when you’re relaxed and less pressured.”
#2 – Measure what you spend
It is really important that you track what you’re spending, and also how much you have to spend each month. It might be wise to only spend in cash, as this is usually an easier way to physically see what money you’re handing over. Often, using a card can feel like pretend money and you don’t get a sense of what you’re spending.
#3 – Cancel subscriptions that you don’t use
Have a look at your bank statements and you may see gym memberships or TV subscriptions that you really don’t need. Think how much money you can save with some of these gone! We suggest addressing this issue even if some of these subscriptions incur cancellation fees: While cancelling a subscription in-term can involve a cancellation fee, some services operate on a ‘month-to-month’ basis, where you cannot be charged for cancelling your subscription so long as you give as much notice as your original content advises.
This means that if you don’t happen to use all the services you pay for – be it a television subscription, an internet streaming service or an online gaming platform – you can easily cancel your monthly payment and find yourself with extra cash each month.
#4 – Address debts
If you have outstanding credit cards or loans, prioritise these, because the sooner you pay these off, the more money you will have in the long run. List any debts that you have, how much you pay per month, and how much interest you pay on these. If you do your maths right, you could really improve your financial situation.
#5 – Renegotiate your bills and tariffs
Some people simply accept their insurance premiums, but by questioning them, shopping around and searching for the best deal, you can really save yourself a lot of money each year. This goes for mobile phone tariffs, driving insurance, energy tariffs and so on.