Whether your financial circumstance has changed or you are saving up for a rainy-day fund it is best to get into the mind-set of spending little and saving plenty as soon as possible, as spending habits can be a very difficult thing to change.
Whether you like to follow the latest fashion trends or need the must-have gadget, whatever it is, it has become a problem that needs to be dealt with.
Face the Problem
The first place to start is to note down every single item you purchase along with the price. This may be something you have heard too many times, but now you need to act on it. If you do this step correctly then it could just be the shock you need. An easy way to keep track of your spending is online banking, as you will have access to a visual record of all the spending you have done in the previous year.
Use Cash Not Cards
After you have identified all of your bad spending habits, the next thing to do is to create a budget. This means you will need to set aside some time to write down all sources of your income as well as a list of all your monthly expenses, you will need to include a list of any debt that needs to be paid too.
There may be some months that will be financially tighter than most, if that is the case and you find yourself struggling you can look into a short term loan available from peachy which could suit your short-term needs. once you have worked out a budget, draw out all the money you need for that day, week or even month.
It has been scientifically proven that it is significantly more painful to hand over cash then swipe your card, so that in itself will decrease your spending habits.
Another tip to use is the 50/50 trick. Which means every time you make a purchase, no matter how much you spent you have to put the same amount into your savings fund, this should naturally help you curb your spending and increase your savings.
Have a Goal
The best way to curb a habit is to set a goal and a time frame, the more meaningful savings goal will help give you motivation you need to stay on track. You also need to remember that having a goal is in your best interest whether you are saving for a rainy day or even saving for an emergency fund. Another way to help you stay motivated is to even have a picture that you can see on a daily basis that represents your goal to help you stay focused.
When it comes to breaking an old habit and developing a new one you need to remember it takes time and practice. However if you manage to overcome your bad habits, it can be incredibly liberating to finally have control over your finances, so stay strong and stop spending.
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