3 Simple & Easy Money Habits That Will Help You Avoid Spending More.
“It’s not your salary that makes you rich; it’s your spending habits.” — Charles A. Jaffe
We’ve all been there. Credit card debt, overspending, insufficient savings, and more.
These reasons make it necessary to impose a strict curfew on yourself when expenses go up.
I had a spending problem.
Many times, I would spend hours browsing shopping apps, purchasing items that weren’t even close to my wish list.
In fact, I once used some of my emergency fund and 3 consequent monthly paychecks to pay off my month-on-month credit card debt.
It sucked to be in this cycle.
So, I took action to get out of this vicious cycle.
As I learned to limit my expenses, I discovered these 3 simple steps. And oh boy they helped me well.
Here are those 3 steps you can use without breaking a sweat.
48-hour rule
Next time a fancy gadget or a dress catches your eye, put it in the cart and forget it for 2 days.
Quite literally. Instead of buying it right away, wait for 2 days.
This waiting time will help you decide if you truly want it or if it’s just a quick feeling. Because, most times, the “I-want-it-now” feeling goes away, saving you money.
It’s a golden rule to get over impulsive shopping.
When I get the urge to buy something, I put it in the cart and forget about it for at least two days. Sometimes, even in a week.
It works well because I end up deleting 95% of items in the cart.
Apply transaction limit on credit cards
Serves two purposes.
- When expenses exceed the limit, the transaction declines. Gives you a second chance to think.
- It also provides security. If you were to lose your cards, the thief cannot spend beyond the limit until you block or report.
Pay through cash.
In my country, UPI is a hit. Digital transactions have become more common than ever.
And it works like a charm. I could go to the market without a wallet, just the phone and still purchase whatever I wanted.
Good thing. But it has a downside.
You tend to underestimate the amount transacted through it.
Imagine, losing 10 bucks online doesn’t hurt as much as losing a 10 bucks physical note. Why? Because you don’t feel it. You don’t get an immediate sense of the amount deducted online.
In a way, online payments make it difficult to track spending.
Hence, I decided to go in full cash mode. I even opt for COD for online purchases, whenever possible. It makes me mindful of every penny spent.
Bonus Tip
Stick to a Money tracker.
You don't need a fancy tracker. A simple one will do.
All you have to do is start.
Because as you start maintaining a money or a personal finance tracker, you’ll get a view of what you own and what you owe.
It is like a game plan for your money. It helps to say ‘no’ to things that aren't in the plan.
Here’s the planner I have been using for the past 8 months. You can refer to this tracker to manage your expenses.
This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.