How to Control Spending Habits | Best Tips How to Deal with It!

By Saima Amir | 19/09/21

Have you preferred to do window shopping in your spare time having many cards in your wallet? Haven’t it provoked your inner instinct to buy unnecessary purchases which might not be needed; however, your easy access cards arouse your unnecessary spending habits. Unwanted spending habits can cause serious financial crises and strengthen mismanagement qualities. Thus, it is quite essential to nip the evil in the bud by focusing on the ways which will be helpful to control spending habits. After all, a dream house, a well-reputed University admission, and an impressive holiday trip are included in everyone’s wish list. In order to achieve these goals, a little sacrifice, determination, and organization skills are required. According to a survey on American’s spending habits, the personal saving rate is on the decline. (Aytac, 2020) They prefer to spend their savings on clubs, entertainment, and other health facilities. This shows that compulsive spending habit gives birth to a bad spending habit that is why it is very important to reflect and review on our spending habits time to time to get a good understand. Once we understand that whatever we saved, will be beneficial at any point in life, eventually, our job will run smoothly. Hence, it is very crucial to understand why and how we can manage our spending habits, and in this article, we will discuss some amazing tips on how to control spending habits.

How to Control Spending Habits

Most people assume that achieving a balanced spending behavior is not possible. Especially young generation find it quite difficult to accomplish it due to lack of guidance, careless and over-spending attitude. If students control their spending behavior and manage their financial status, produce the ability to assemble their lives in a good way as well as successful in obtaining good academic results. (Cummins, Haskell, & Jenkins, 2009). However, nothing is impossible, I believe that a proper understanding of the impact of good spending habits over bad, would appeal to individuals and people around him. All we need is the urge for correction, a firm attitude to stands on the decision, and determination. Such determination should transform into your daily consumption behavior, cut off excessive purchases, weekly budgeting, and setting achievable goals. After a while, it becomes a normal attitude in consuming resources and most importantly other people will also learn to be a responsible user, hence a good society will shape.

Impact of Bad Spending Habit on Your Life

Certainly, every wrong act has a negative outcome which is why it is very crucial to point out the mistake on time and immediately set corrective measurements to fix it. Similarly, when expectations would not meet due to a bad spending attitude, as a result, it causes disappointments, frustrations, and serious health issues. Rainy days never inform, misfortunate happens any time, hence, protect yourself from regrets and pleads by saving for the trouble days. For example, a situation in which you must pay rent in a few days, and you have a little over the amount you need. But because of illogically chasing after items, you are now behind on your rent or in the worst case being evicted. This irresponsible spending behavior creates serious consequences, if not considered ahead of time or ignored, which may place you in a dire situation. Remember that proactive strategies and plans are always lifesavers to protect from all unseen incidents!

Seven Amazing Tips on How to Curb Spending Habits

Suggestions and advice are always taken into consideration to correct the attitude. No one is perfect all the time, but if you are guilty of your wrongdoing there is no shame to mend it as early as possible. Compulsive spending habit usually ends in the form of anxiety and guilt, as due to the emotional circumstances, people prefer to spend and later regretful. (Aytac, 2020) Thus, in this article, we will explore seven great tips to limit spending habits that will change your life.

· Set clear objectives

· No more credit cards.

· Plan your weekly budget.

· Asking questions before making any purchase

· Incorporate productive activities in your life.

· Encourage saving money habits.

· Minimize your Media dependency.

1. Set Clear Objectives and Identify your Goals

Have you traveled anywhere without thinking of the destination or planning to teach with the absence of a lesson plan? Most of the answers will be no, as prior planning and goal-setting skills ensure a smooth hassle-free journey. Sit, relax, and set your goals what you want to achieve in the future, primary and secondary objectives. When an individual spends while having objectives in the mind, surely, he will adjust the purchase accordingly to reach those defined goals. Consequently, it allows minimizing bad spending habits.

2. No More Credit Cards

Undoubtedly smart cards are one of the biggest culprits that spoil good spending habits and strengthen bad spending habits. On the one hand, these cards relax the consumer, and they make impulse purchases, (Rook, 1987) on the other hand, it disrupts financial stability. In addition, its complete dependency on human purchases creates anxiety, depression, and illegal acts due to the uncontrollable debt. That is why keeping cash instead of credit cards is one of the greatest tips that help in controlling spending habits.

3. Plan Your Weekly Budget

Every consumer knows their weekly consumption and expenses; hence, it is very wise to design a weekly budget and stick to it. A well-organized weekly budget ensures strengthen good spending habits as you won’t go for unnecessary shopping and keep a check and balance of your purchase, moreover, maintain financial control and support saving money skills. It also helps to enhance problem-solving and decision-making skills, for example, many times a consumer require to adjust his decision to follow the budget and make the situation possible.

4. Asking Questions Before Making Any Purchase

Do I need it? Can I afford it? What will be the cheaper substitute for this purchase? These are the few important questions to ask before making any purchase. And if you continue these habits, certainly you can cut down unwanted expenses as well as maintain a good financial balance. Learn to refuse, if something is 50% off does not mean that regardless of your need, it must be in your home. Most people don’t realize what and why they are buying, is it necessary or just providing satisfaction for the consumer. That is why the above-mentioned questions help the consumer to understand the intensity of the purchase.

5. Incorporate Productive Activities in Your Life

Are you surprised that what is the connection between healthy activities and spending habits? Yes, we can control bad spending habits by involving constructive activities in our life. For instance, whenever your impulse consumption triggers, think instantly about different healthy activities such as, visit any friend or library, go for a walk, groom your plant or read a book. These activities serve as a diversion from your bad spending habits. As, for some people, shopping is a sign of relief, entertainment and an escape from daily routine, and, inculcating healthy activities in your lifestyle help to control spending habit and maintain good physical health.

6. Saving Money Habit

There is a famous saying by Warren Buffet, ‘do not save what is left after spending, but spend what is left after saving’. Saving money is very crucial in controlling spending habits as if you save wisely, you will be able to fulfill your dreams. Saving habit is not only for adults, but also, every member of the family must know the value of saving or how to save. They save for emergencies and better opportunities. In America, an average saving person in Young American Bank is 9-year-old and holds a balance of $450. (Furnham, 1999)

7. Minimize your Media Dependency

At present, the media has full control over human spending habits. It’s showing off fancy advertisements, lavish styles, and versatile ambiance that arouses everyone to follow them and imitate their lifestyle. Therefore, people fall into their trap blindly, regardless of available resources, buying products, and achieving weak financial status. Advertisements have a very strong connection in media’s growth, relatively out inner satisfaction appeals us to buy more fancy products which really, we don’t need. Honestly speaking, no one can completely refrain from media’s attraction, however, in order to make our life healthy and balanced, we must minimize its usage. Be realistic and focus on your goals that is how we can manage to change bad spending habits into good spending habits.

References

Aytac, D. (2020). Our Temptation for Benjamins: Can framing spending habits allow us to overcome present bias?

Cummins, M. M., Haskell, J. H., & Jenkins, S. J. (2009). FINANCIAL ATTITUDES AND SPENDING HABITS OF UNIVERSITY FRESHMEN. Journal of Economics and Economic Education Research.

Furnham, A. (1999). The saving and spending habits of young people. Journal of Economic Psychology, 677–697.

Rook, D. W. (1987). The Buying Impulse. Journal of Consumer Research, 189–199.