Are you wasteful? You lack financial management skills, and you end up spending it on anything even if you don't need it? If the answers to both questions are yes, pay attention to this article.
We will give you the keys that will assist you in improved money management, to stop unnecessary spending, and, therefore, be able to save a little more. If you want to know how to avoid spending money unnecessarily, pay attention to the following tips.
Evaluate your expenses, the first strategy to save money
To start better managing your income and avoid spending money unnecessarily, it is essential that you previously evaluate your expenses. What do you usually spend money on? That is the central question you will have to answer. Hobbies, activities, clothes, or other items can be the main culprits for the unnecessary expense.
Read also: How to Save Money Fast as a Student
The objective is to check if you are allocating too much money to discretionary expenses, that is, to those that are not fixed, such as rent or essential services that are the same month to month.
To be able to evaluate your expenses, you must carry out the following tasks.
- Review your expenses for the last three months, both for the bank card and the cash spent.
- Find out what% these expenses represent by dividing them into fixed and discretionary.
- Save all the receipts to keep track of what you spend daily, so the quarterly registration will be much easier for you to do.
The objective is to respond to questions like: do I spend more than I earn? Will I waste my entire income in a few days? Do I have trouble making ends meet? These are some of the keys that will make you reflect on what you are spending and see how much money you spend on unnecessary expenses.
Tricks to Save Money Every Day
Once you have evaluated your expenses in the last three months and know how much money you spend on unnecessary costs, it is time to change your habits to avoid wasting your income senseless.
- To do this, we suggest you create a budget, which you must follow to the letter. To generate it, you must determine what your fixed expenses are (rent and essential services, transport, food, health, various costs such as having a pet or going out to dinner once a month) not to spend more money than you do not have.
- Another thing you should keep in mind is to set goals when shopping. It is effortless to spend mindlessly when you go shopping or go out to buy the jeans you need. The important thing is not to overspend, check what you need, make a list, and stick to it, especially in food. As for clothes or other vices, you must control your impulses.
- And precisely, not getting carried away when buying is another of the habits that you should redirect. Try to resist the temptation and ask yourself two fundamental questions: “ Do I need it? " And" is it within my budget? " If the answer is no, stay away from what you were going to buy and so you can save that money for something you need.
- Do you eat out every day? Reduce your expenses by preparing your food and taking it to work. Although they seem insignificant expenses, they are the most noticeable. As well as coffee, tobacco, and other vices.
- Credit cards, NO! They can be dangerous if you are unable to manage your money, so we strongly discourage them. The best thing is to opt for debit cards, which discount the money spent at the moment. With credit, it will happen that you will spend what you do not have, but it will be deducted the following month, something that can be dangerous, and that can lead to significant debt problems.
To avoid unnecessary spending, the idea is to limit your spending, which can only be done if you do your part and change your habits. Try spending only what you need in a month, and you will see how your savings account increases little by little.
How to Stop Being Wasteful
Although you must try to change your habits and cut back on your own wasteful spending, sometimes the lack of control requires an external agent who can reorder your accounts and your ideas. However, you should first be conscious that you are a compulsive shopper who spends more than you have without being able to avoid it.
Shopping compulsively can lead to significant issues like anxiety, depression, or loneliness, and they often occur within these contexts. In this case, you will need to see a therapist, since compulsive shopping is often considered an addiction.
Also read: How to Save Money with a Low Salary
The same happens with gambling addiction or gambling, another of the agents that can cause a useless waste of money. For all these cases, doing therapy will help you obtain healthy alternatives that will help you deal with the different emotional problems that lead to unnecessary spending. Ask for help!
Adapted and translated by The Cop Cart Staff