If your spending is out of control and you are looking for ways to reduce your expenses, check these 7 ways to spend less. Try freezing your spending on wants (not as much on needs) for the next couple of months. Here is how you want to approach it.
This decision may be tough, but it is a necessity if you want to keep more money in your wallet and your bank account. Let's have a look at these 7 tips here and go into detail later.
1) Decide about the period when you will freeze your spending
To make this exercise effective, you need to decide how long you'd like to carry out this plan. If you freeze your spending for 6-12 months, it may make a huge positive impact on your finances. If you are in debt, it will be a big help to get out of it.
2) Make a list of what you really need
You need to make a clear difference between what you need and what you want.
Your needs include several important categories, like housing, clothing, food, transportation. For some of us these needs may be different. Some need to include child care. Others will need to include unlimited Internet because of the nature of their jobs.
3) Resist temptation to spend
The best way to stay the course during the spending freeze is to avoid opportunities to spend. What does it mean? Don't visit the places where you can start spending, like malls. Don't go to websites where it's easy to spend. Amazon, I am looking at you! Don't go to restaurants - cook and eat at home. Invite friends over (when the times are right!) without going out too often.
4) Stick to your shopping list
Don't do grocery before putting a shopping list together. Buy only the items on your shopping list.
If you see something you need, but which is not on your list, put it in the next week's list when you are back home. Make sure not to spend more than planned.
5) Put away your credit and debit cards
Putting your cards away is an important part of the spend freeze. Put them in a safe place that's hard to get to. Put the cards in a drawer or a safe box if you have one. The farther away the cards are, the better it is - you'll be looking for them rarely if at all.
Also, make sure to delete your credit cards from the online stores which stored them. Make it as a rule not to buy anything without the card in your hand. Forget about those 1-click sites - Amazon, I am looking at you, again.
During your freeze period, pay for day-to-day purchases in cash. Pay your bills with checks if possible.
6) Cancel your subscriptions
These days we may not have cable TV, but we have tons of online subscriptions: Shopify, Netflix, Amazon Prime, Disney Plus, Apple Streaming, HBO. These all add up to a good amount each month. Sift through your monthly subscriptions and keep just one you use the most. Cancel all the other ones without looking back.
7) Negotiate your insurance and cell phone plan
It's a tough call as it will require a couple of hours of your time where you need to put your negotiation skills to work. Call your home and car insurance company and ask about rebates and discounts to your current plan. Do the same with your cell phone company.
Ready for the challenge to start spending less? Start today.