There are some of us that find it difficult to not spend money. Obviously, we all need to spend money on some things. We need to buy food and pay our bills, pay our rent or mortgage and transport to work as well as other essentials. However. Beyond those essentials, we will often spend extra money on all sorts of luxuries. This might be things such as going out, eating out, paying for hobbies, holidays and all sorts of things. These things can be extremely pleasurable and make working worthwhile and also help us to relax. However, if we are spending too much money then it can lead to problems. It can mean that we do not have any savings to use for spending on emergencies, that we have to borrow money to get through and we can end up just losing control of our money. This can be distressing but spending can get to be a habit or it can sometimes just be hard to figure out how to manage everything that you need and want with the income that you have. However, there are things that you can do which will enable you to cut down on your spending.
Write Down Everything you Spend
The first thing that can help a lot is to write down everything that you spend. You can do it on a spreadsheet or on paper but note down everything thing that you are spending money on. This is everything that leaves your bank account, such as standing orders, direct debits and cheques and then everything you buy with debit cards, credit cards, cash etc. Just make a note of everything and this will help you to see exactly what you are buying. This is an important step as many of us know that we are spending too much but are not really sure on what. Therefore, noting it down will allow you to clearly see what is going on. It might feel like you are going to have to give up things you like, but this may not be the case, so be honest with yourself.
Prioritise Your Spending
Once you have a list you will be able to identify what you need to buy. There are certain things that we have to pay for, even if we do not really want to. Things such as council tax, no guarantor loan repayments, utilities and contracts. It is important to think about all of our commitments and necessities and make sure that we have enough money for those first. Then you will be able to see how much money you have left. You might want to split that money left into categories. For example, you might want to put some in a savings account, use some to repay debt, some to pay for evenings out and things like this. This where you get to choose where you spend your money so you need to do it in a way that will enable you to feel in control and not deprived,
Of course, the above stage assumes that you will have some money left when you have paid for everything that it is essential for you to buy and this may not be the case. If you are struggling with this, then something helpful that you can try is to compare prices and make sure that you are not paying more than necessary for items that you are purchasing. You may find that if you swap providers, brands, insurers, retailers etc you could get a better price. Even if you are not struggling, it can be well worth checking this out to see whether you are paying more than necessary as you could find that you can save a significant amount of money if you switch to paying less for lots of items.