Spending less money could be your ticket to a myriad of financial goals.
- A recent survey shows that many consumers want to cut spending in the New Year.
- Staying on a budget, setting priorities, and being savvy about shopping online can help reduce your spending as well.
It’s common to make financial resolutions at the start of a new year, and a common resolution for 2022 is to cut spending. In a recent Main survey38% of respondents said spending less money is something they aspire to do, and for good reason.
The less money you spend, the easier it will be to achieve a variety of goals, from saving for a home to supplementing your emergency fund. If you need some tips on how to cut down on spending, here are some relatively simple ones to get started.
1. Follow a budget
Sticking to a budget will make it easier to reduce your spending, as you’ll have pre-set guidelines to follow. Your budget should take into account your different expense categories and what they cost you. It should also be configured to ensure that you don’t spend more in any given month than what your paycheck gives you.
By setting a budget, you’ll have a clear idea of ââhow much you can spend on everything from gasoline to groceries to rentals. And this budget can also make it easier for you to identify which categories you can narrow down.
2. Set priorities (and actually write them down)
It’s normal to have non-essential items that you spend money on each month, like take out food, streaming services, and social events. But if your goal is to cut spending, you may need to set some priorities.
Think about the non-essential expenses you spend on a regular basis and decide which ones are most important to you. You can choose to cut down on take-out meals if it means seeing your friends regularly and joining them for different activities. Then put those priorities in writing to help keep you on track.
3. Don’t shop out of boredom
Sadly, it looks like we’re heading into another pandemic winter, and that could easily pave the way for some boring shopping – spending hours browsing online because you’re stuck at home with nowhere to go. But just as shopping can help fill some of your empty weekend or evening hours, it can also be a source of unnecessary expense.
Better bet? Find a low cost hobby to replace shopping. An even smarter move? Turn your hobby into a side activity. This way, you will not only avoid spending, but also increase your income.
4. Do not store your credit card details on your electronic devices
Storing credit card details on your phone, tablet, or laptop can make online shopping quick and convenient. He can also do it too much easy to complete those purchases, and that’s a bad thing when it comes to impulse buying.
If you intend to save more money in the New Year, then don’t store your credit card information on your devices. That way, if you’re lying in bed and browsing your tablet, just having to get up and find your credit card might be enough to keep you from buying the cute sweater or comfy track jacket. that you would like to own, but technically not need.
Spending less money often comes down to adjusting your mindset. These steps could be your ticket to cutting spending in 2022 – and celebrating the financial goals you achieve through them.
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