How do I save money without being tempted to buy something that is not needed?
Hi! I’m Mikey Rox, and this is Spend Savvy, the super short show where I deliver money-saving tips and tricks for everyday life.
Today’s question is, ‘How do I save money without being tempted to buy something that is not needed?’
If I had a dollar for every dollar I spent that I shouldn’t have – well, I’d break even. What that means is, don’t feel bad about occasionally giving into temptation. Just don’t make it a habit and try to follow some of these tips to keep yourself in check.
OK – want to know the number one way to stay on the savings track? Put your money in a savings account! This account isn’t as easily accessed as your bank account – and if it is, change that right now. The point of the savings account is that if you can’t get to the money, you can’t spend it. As they say, out of sight, out of mind.
Tip #2 – get rid of all unnecessary credit cards – which is most of them! You do not need six credit cards, and a petrol card, and a card to your favorite boutique. When you have these cards handy, it’s very easy to succumb to temptation. You’ll feel guilty about it, which is a self-imposed feeling that you can avoid, but also you still have to pay for the item – plus interest. The day the bill comes will not be a good one for you; don’t do that to yourself.
Another great way to avoid retail temptation when you’re trying to save money is to avoid the shops. If you have free time, find something more productive to do than wander in and out of stores. Eventually you’re going to find something you like and give in. Not ideal.
Tip #4 is to create a monthly budget specifically for entertainment and other “fun” purchases AFTER you’ve paid your bills and sent a good chuck of your disposable income to savings. Keep that money with you in cash and convince yourself that when that fund runs out for the month, that’s it – no more spending. The goal is for you to learn to cut back and realize that you’ll be OK if you don’t buy that new pair of shoes or eat at that fancy new restaurant or see the new blockbuster movie in IMAX 3-D.
And last but not least, put reminders of what you’re saving for around your home. If it’s a house or a car or another tangible item, pin a picture of it to a board or tape it to a wall. Put another photo of the item at your workplace. By having a constant reminder that you do in fact have an actual savings goal, you’ll much more likely to stick to it.
That’s it for today. When temptation strikes, remember these tips to keep moving forward on the path to savings bliss. Until next time, stay Spend Savvy.