Have you heard this before but are not quite sure how to control spending? It may not be an easy and quick process but it comes with rewards. There is a strategy to help you track spending and save some money to put towards your debt.
Your first step is to cut down on the non-survival expenses. Keep the expenses that pay for food and shelter, and a car if you need one to maintain employment (keep in mind you don’t need a new car, just one that takes you from A to B safely). Once you have set your expense priorities, you’re ready to establish a plan for spending in general.
Avoid impulse buying and think about the repercussions of any purchase. Ask yourself:
- Do I really need it or do I just want it?
- Is there a possibility it will go on sale?
- Am I getting my money’s worth?
- What else could I do with that money if I don’t buy this item?
- Am I better off saving that money for something else later?
Avoid Triggers that cause impulsive purchases. Before you enter any store, do the following:
- Eat a snack before you go shopping, especially grocery shopping
- Bring a snack with you to avoid buying snacks
- Make a grocery list and stick to it
- Leave the kids at home to avoid any “I want” requests
- Build a monthly budget based on planned purchases
- Leave credit cards at home and use cash
- Don’t shop when you’re feeling depressed or stressed
- Always comparison shop on major purchases
- Avoid buying just because item is “on sale”
- Bring all the coupons you can find
Give everything at least one day before you make a purchase. That way you have time to think about it. Using this 24 hour pause rule can help you continue to control spending going forward.
Consider the possibility of do-it-yourself projects. Do you need to paint, build or repair something? If you deduct the costs of labor from the total, you will end up saving quite a bit of money. The project may take a little longer, but think of how much more you will value the end result knowing you took the time and effort to get the job done yourself.
Give yourself a reasonable allowance each week. You can track your spending better if you have a controlled amount to draw from. A reasonable amount is $20 in cash a week to spend on entertainment, coffee and other incidental spending. Whatever the amount, it should be reasonable and an absolute limit.
Need more advice on saving, budgeting, spending or managing debt? OCCA Consumer Debt Relief has been helping thousands of Canadian consumers resolve debt and educate on budgeting for over a decade. We offer a free financial assessment to assess and advise reasonable debt relief options..
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