How To Stop Spending Money

July 3, 2023 • Chris Bardsley

How To Stop Spending Money

Do you find it impossible to stop spending money?

From spending more than you realise during the weekly shop to those impulse purchases, the amount of money we spend can soon get out of hand. Before you know it, you’re in your overdraft, in debt or worried about how you will pay your bills.

The good news is that life doesn’t have to be this way, even if right now your spending feels like it’s in freefall.

Overspending is very common, so there’s nothing to feel embarrassed about either. But with some simple strategies, you can get back on track.

Here at Fair for You, we want our blog to help you improve your financial wellbeing. In today’s post, it’s the turn of how to stop spending money.

Have A Budget Unique To Each Month

Whenever anyone mentions having a ‘budget’ it’s so easy to dismiss the idea.

But what a budget will do is give you clear answers about what you can and cannot spend. Without this guide, it’s very easy to overspend without even realising it.

When your budget is unique to each month, it will help you adjust to the varying expenses you’ll face throughout the year. For example, during the school holidays or in the run up to Christmas- your expenditure is never the same from one month to the next.

Now is the time to write down your income, then all of your essential bills and expenses. You should then be able to know to the penny what money you have, including whether there is any money left over to spend or better still save.

FYI, budgets don’t have to be boring either! There are now lots of apps you can use to make budgeting a piece of cake.

You might be interested in: 4 hidden monthly bills you had no idea you were paying

Have A Goal To Focus On

It can be really difficult to change our habits without any motivation to focus on.

For instance, when people get in shape for their wedding or a holiday, they are more likely to be motivated by focusing on that end goal. This is especially the case when the workouts get tougher, or if they wake up not wanting to work out. That voice in the back of their head keeps them going even when they want to give up.

Now let’s apply the same logic to your finances and how you can stop overspending.

Identify why you want to save money. If this is to work, it has to be a goal that personally means something to you.

For instance, you might want to save money to:

  • Get out of debt

  • Build a financial safety net

  • Create a better life for your family

  • Save to buy a house

  • Sleep better at night because you’re no longer worrying about money

So whatever has brought you to this blog post, think about why your current financial situation needs to change, and how quitting overspending could get you there.

Separate Needs Vs Wants

It’s a simple fact that not everything we buy is essential.

It’s not possible to stop spending money altogether. After all, we all need to be able to have a roof over our heads and eat. These things don’t come for free.

But before purchasing anything, consider whether or not it’s a true necessity or not. If you have something similar at home, or if it isn’t essential for your basic survival, for now you can probably do without it.

Also take a look at the apps you have on your phone. Are any of these shopping or takeaway apps? If so (and these are making you spend money you don’t have) delete them now.

Think of it this way, if you want to stop spending money, you have to look at what you’re actually spending money on. That’s wants vs needs in a nutshell.

Look At Alternative Options When You Do Have To Spend Money

Sometimes altering how we purchase things can make a big difference to how much we spend. Even smaller changes such as opting for a cheaper home delivery slot can add up.

Take Fair for You as one major example here. On our website, we allow you to purchase goods such as vacuums, washing machines, ovens and fridges as part of our flexible low repayment scheme.

We want to make the process as fair as possible (hence our name!) so that you can afford what you need without having to struggle.

Read more: What’s the Difference Between Fair for You and a Buy Now Pay Later Firm?

Stop Emotional Spending

Did you know that the way we spend money can be linked to our emotions?

Emotional spending can happen for lots of reasons. While no substitute for speaking to a professional therapist, you could be an emotional spender if you spend money depending on how you are feeling.

Some people can have emotional triggers related to anxiety, depression, sadness, guilt or boredom causing them to spend money in response. Likewise, some people use retail therapy to try to fill emotional voids including loneliness.

Peer pressure and what we see on social media can also make us want to spend money to feel validated.

Spending money to get that ‘high’ is something that is extremely common. But unless you realise the reason for spending money, it can be so easy to carry on oblivious.

Read more: What Is Financial Wellbeing?

Be Realistic About Your Financial Situation

It can be really difficult to face up to the fact that you don’t have the money to sustain your current spending habits.

But if there’s something to know here, it’s that net worth and self worth aren’t connected.

Even if you’re struggling now, that doesn’t mean to say things will always stay this way either. By understanding your financial limits, you can start to build up more financial reserves to work towards the life you want.

In contrast, those who can’t see the financial situation they're in, including why they are overspending will struggle to get a better outcome.

So even though it’s tough, you have to stare the problem in the face to be able to overcome it, which by the way you absolutely can.

Work Out Why You Spend Not Save

Have you ever thought about why it’s so easy to spend money, but not put that money away for a rainy day?

There’s a certain irony here, in that often those who face financial difficulties will spend any money as soon as they have it. This is often to the point where they cannot seem to hold onto their cash.

If you think about it, impulse or overspending makes sense if you’ve ever experienced financial insecurity, especially growing up.

However, what this really does is keep you trapped in your current situation, because you’ll have no financial reserves to build up your money.

Sure, saving can seem really boring. It may mean you can’t buy all of the things you would like to. But it doesn’t take long to see your pile of money build up, and once you reach a substantial amount of cash in the bank, it’s way more rewarding than any impulse purchase ever could be.

Change Your Circle Of Influence

Many studies have shown that our finances are influenced by those closest to us.

So if the 5 people you spend time with the most don’t save, overspend and are in debt - you’re actually more likely to be in the same situation. In addition, many people have poor financial habits due to following how they themselves were taught about money growing up.

A really easy change you can make today, is to switch up your circle of influence especially if anyone may be inflicting negative habits or mindsets on you.

While this can be a really complex topic, it is essential that we all have people around us who build us up and encourage us to grow as individuals.

If you’re not sure where to start, financial gurus such as Martin Lewis and Dave Ramsay can point you in the right direction about how to create a healthy money mindset.

Keep Yourself Accountable

If you’re going to stop spending money (especially on things you don’t need) then you want that good work to continue. That’s because it could just change your life, especially if you get to the point where you have a healthy amount of savings, and you’re no longer worried about money.

Could you spare a couple of minutes each day to check your bank balance?

Then, every few weeks, take the time to closely look at your spending habits over the past month. Ask yourself whether you’re happy with the progress you’re making, or whether you need to do further work.

What this is going to do is make sure you don’t slip back into your old ways, especially if your spending is out of control.

Helpful Money Saving Links From Elsewhere On The Web

Fair For You - Afford The Things You Need For Less

If you’re struggling to afford the things you need for your home or family, then Fair for You may be able to help.

We offer a range of goods as part of our flexible repayment scheme system. What this means is that we work with you to see what you can afford, to make sure you only borrow what you can pay back.

If you’re new to Fair for You, check out how our loans work for you rather than the other way around. You’ll be pleasantly surprised that we aren’t like some other credit providers as we’re on your side!

You can also keep up to date with our latest news and articles by following Fair for You on Facebook, Instagram or Twitter.

This entry was posted in Finance, Budgeting Tips, How To's and Blog
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