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It is so much easier to spend money, even money you don’t have, than it
is to save money isn’t’ it? But you may have big reasons to cut back on
your spending right now and it’s time to start increasing your savings. |
The number one place to start is with considering why you want to cut back on your spending. What is your motivation? Do you want to go on holiday or retire early? Maybe you’d like to get out of debt, help pay for your grandchildren’s education, buy a motorhome or go on a special holiday. Whatever the reasons, write them down so you can refer to them at moments you’re feeling challenged.
You don’t have to give up every luxury. If you’re used to a glass of wine every day, cut it back to every other day. You’ll be amazed at the amount you save. One thing that’s really essential is to give up smoking. Talk to your doctor to get some help. Not only will you save a huge amount of money over the course of a year, but you will also feel a whole lot better and quite probably prolong your life. However, you should resist cutting your spending so far back that you feel deprived. Even though you have good intentions, it will backfire.
If you have debt issues, put your debts down on one sheet of paper. They look worse all in one place, in black and white, and this might help motivate you, or at least remind you of what you need to be doing.
Watch out for impulse buys. Implement a 72 hour rule or a 30 day rule before you buy something you suddenly need but didn’t need before you first laid eyes on it. After the time period is up you may find you don’t have to have it after all.
Try using cash. Cash looks, feels, and acts like real money. Credit cards don’t always seem quite real. When you spend cash it’s a little more painful and real than whipping out a small piece of plastic.
Plan ahead for big purchases so that you can use time to shop for the best deals or time to wait for the sales. Some items always go on sale at certain times of the year; cars before the next year’s models come out or the registration numbers change, gas barbeques at the end of summer, and ovens and washing machines in September or October. Search for discounts online for an item you want to purchase. You may be pleasantly surprised if you take a few minutes to do some legwork.
Take a good look at your eating habits. Lots of takeaways equals lots of money out the door. Plan your menus ahead of time so you have the ingredients on hand to make dinner. Not only is this good for your wallet, it’s good for your health too. In addition, have lunch items on hand and give yourself a little extra time in the morning to pack your lunch rather than use a sandwich bar.
Plan your errands. You’ll save on petrol if you go to several places on one trip. If you qualify for a bus pass, consider using public transport rather than taking the car. Alternatively, if public transport isn’t convenient for you, see if you can use a partial car journey to take you to a public transport link.
Turn down the heating a notch. Programmable thermostats will definitely help you save because you can program them to be at a different temperature when no one’s home or when sleeping.
Cutting back on your spending doesn’t have to be an all or nothing proposition. You can still have some luxuries that are important to you, as long as you’ve made a conscious decision as to which luxuries those are. Keep in mind why you’re cutting your expenses and the benefit you’re striving for. The more you cut your spending, the faster you’ll reach your goal.