How To Stop Spending Money Unnecessarily

Picture this: it’s June, and you’ve already splurged a significant chunk of your hard-earned bonus on trivial things. Suddenly, that dream holiday abroad feels like a distant mirage, seemingly unattainable. Yet, against all logic, you find yourself unable to resist the temptation to spend. It’s a real problem, turning the sixth day of the month into month-end madness. You’re down to just a few days of savings, but then you stumble upon a pair of incredibly cute shoes that perfectly match one particular outfit. And let’s be honest, who can resist something cute? But fear not! In this blog, we’re going to unlock the secrets of controlling your habit of overspending and how to stop spending money unnecessarily . So buckle up overspenders, as we embark on a journey to conquer impulsive spending and pave the way towards financial freedom!

Golden Rule of Savings 50:30:20 

Think of 50:20:30 your rule of finances. It’s a budgeting compass that divides your after tax income into 3 categories: needs, wants, and savings. By allocating 50% of your income to needs 30% to wants and 20% to savings you can get a clearer perspective on your financial priorities and make smarter money decisions. 

Read more: Unveiling the Power of the 50:30:20 Rule

What Kind Of Shopper Are You? 

• Emotional: Love the rush of getting hands on something new, whether it be technology or trendy fashion. 
• Discount Seekers: Buys things because they’re on sale whether needed or not 
• Convenience Cravers: Cannot resist pop-ups and apps that makes them buy stuff in a click.
• Impulse Buyers: Buys things as they like them, then and there.  

Tips To Stop Overspending

1. Create a Budget

Take charge of your financial well-being by establishing a realistic budget that allows you to track your income and expenses effectively. By allocating your funds wisely, you can steer clear of when to stop spending money and make conscious decisions about where your money goes. Keep a budget journal to meticulously record all your expenses, enabling you to pinpoint areas where you tend to overspend.

2. Fun & Frugal Activities

A lot of overspending tends to happen because of boredom. Discover low-cost, fun activities that keep your budget intact. Head to a serene park and immerse yourself in a captivating book or book a badminton court for a friendly match. By planning these activities in advance, you’ll steer clear of expensive impromptu plans. 

3. Save On Travel 

Maximize your travel budget by carefully planning your itinerary in advance. By taking the time to plan ahead, you can save big on travel expenses and make the most of your journey. From finding affordable accommodations to scoring the best deals on flights or transportation, strategic planning ensures that you optimize your savings and have more funds to enjoy your travel experiences. Embrace the power of smart travel planning and unlock incredible savings on your next adventure!

4. Keep it in Cart

Adopt a “keep it in the cart” strategy when shopping online. Add items to your cart and give yourself a cooling-off period before finalizing the purchase. You may find that you no longer desire the item after some time has passed.

5. Prioritize Needs over Wants

Distinguish between essential needs and discretionary wants. Prioritize spending on necessities and allocate a specific portion of your budget for discretionary items.

6. Avoid Impulse Purchases 

Implement a “wait and evaluate” approach for impulse purchases. Give yourself a predetermined waiting period before buying non-essential items to ensure they align with your priorities. 

7. Invest your savings

Multiply Your Savings through Smart Investments! Don’t let your hard-earned savings sit idle. Instead, consider investing them in low-risk assets with a small lock-in period. This ensures that you not only protect your savings but also have the opportunity to grow them. Discover the power of investment apps like Fello, where you can explore various investment options tailored to your risk tolerance and financial goals. By investing wisely, you can make your money work for you and secure a brighter financial future. Start investing today and unlock the potential of your savings!

8. Practice Mindful Spending

Be mindful of your spending habits and question whether a purchase is necessary or adds long-term value to your life. Consider alternative options or wait for a better time to make the purchase.

Way Forward 

Having disciplined financial behavior is of utmost importance. Understanding the difference between necessities and wants is important. Planning ahead of time, creating an effective budget, and, most importantly knowing your financial situation by comprehending short-to-medium term cash flow scenarios help you become self aware of your spending habits. word. Due to people’s lack of understanding of finance, a lot of people are unable to stop spending money unnecessarily . Financial literacy helps in gaining knowledge about the nuances of basic money management skills, and guides you on savings and how one can create a budget. If you are financially aware you can better manage your finances through the above mentioned ways.

You can also start investing your savings on a low risk high return platform like Fello. With Fello you get upto 12% of interest on your savings. With an easy interface and autosave feature available you don’t have to worry about regularly saving money on the app.