How To Control Your Spending Habits: The Best Formula
We all have spending habits. Some of us are naturally more frugal than others, but it’s important to understand that even the most frugal people slip up sometimes. With a little bit of effort and planning, though, you can break your bad spending habits and find ways to control your spending habits for good.
If you’re trying to establish better spending habits, you’re not alone. Many people struggle with their spending, whether it’s on the low end or the high end of things. There are many factors that contribute to our overall financial well-being and one of them is how we spend our money.
Identify your triggers
The first step to controlling your spending habits is to identify your triggers. What makes you want to spend money? What makes you want to buy things, even if they aren’t necessary? Triggers are the underlying reason why we act on impulse and spend more than we should.
To figure out what’s behind these impulses, ask yourself these questions:
- What causes me (or other people) to buy things we don’t need?
- How do I feel when I’m in this state of mind? Do I get depressed or anxious after making a purchase?
Keep a money diary
One of the best ways to control your spending habits is by keeping a money diary. This means that you need to write down everything you spend money on, how much it costs and where. You should also keep track of how you feel about each purchase and whether or not it makes sense for the long term.
For example, if someone bought a new car but didn’t tell anyone about it, then this could be considered an extreme case where they did not have proper control over their spending habits. Instead of buying something unnecessary because they had no idea what else was available on the market (or even worse: because they wanted something new), they could have saved up some extra cash until they found something more suitable without having too much debt at once!
Set spending limits
If you want to control your spending, the best way to do it is by setting limits on how much you can spend per month. For example, if you want an extra #10,000 a month for emergencies and other unexpected expenses but don’t think that’s possible right now, start by making a budget so that there’s no room for overspending.
Then set up an account specifically for your savings and use it as often as possible—that way, even when something unexpected happens or someone asks for money (or even if they’re just being nice), there won’t be any temptation to go into debt because all of those nairas will still be safely tucked away in their own special box with only enough cash left over each time so that no one has to access too much money at once—the same way most people keep their credit cards tucked away under lock & key!
If this isn’t really a viable option yet because maybe one day soon though…then maybe try using this method instead:
- Use a debit card linked with another account where some amount comes out every month which goes directly towards paying off debts owed first before anything else goes towards living expenses such as food etc.
Also Read: 7 Steps To Create A Savings Plan and Commit To It
Get into the habit of comparison shopping
The next step is to get into the habit of comparing prices online. You can find out what your local stores are charging by doing an online search for “best buy” or “target,” and then checking their websites to see if they have any deals on that day.
If you’re not able to do this, then it’s time to start shopping around! As I mentioned earlier in this article, there are many ways that consumers can find discounts—and we’ve listed some here:
- Compare prices among different stores (online or in person). If one store has a better price than another one nearby, chances are they’ll also have better quality products too! This way, you’ll be getting more bang for your buck with each purchase.
- Look for discount codes and sales. A lot of stores have special offers where you can get discounts on certain items. These are usually only available online, so be sure to check their websites before shopping.
- Keep an eye out for coupons. They can be great tools to help you save money on items you need or want!
Do something else
Take a walk, call a friend, read a book or magazine (or any other activity that you enjoy doing), go for a run, or do some gardening. These activities can help you feel better about yourself and keep your mind off of spending money on things you don’t really need. If possible, try to do this on the weekend so that it doesn’t interfere with work-related activities like paying bills or doing laundry.
Focus on what you have and save your money for something special.
As you’re getting your finances in order, focus on what you have and save your money for something special.
Don’t waste money on things that don’t matter to you. If it’s not going to make a difference in your life or if it doesn’t meet a need, then why buy it?
On the other hand, when deciding whether or not to buy something important enough for the purchase—whether it’s food or clothing, or simply entertainment—make sure that whatever item(s) are being considered were still affordable even after paying off debt. If they weren’t affordable before paying off debt but now seem like an acceptable price because of how much easier life will be once all debts are paid off then this could very well lead back down paths where spending becomes problematic again!
Changing your spending habits can be hard but not impossible.
Changing your spending habits is not impossible, but it’s definitely not easy. It takes time, effort, and dedication to change your spending habits. If you are serious about changing your behavior, then you will need to be prepared for some challenges along the way.
You might not be able to control your spending habits overnight. But with the right tools and a little practice, you can make significant changes in how you spend money—and enjoy less stress as a result.