It’s so easy to fall into bad spending habits, whether you are spending money without thinking or spending it more frequently than you should be, it can be difficult to change your ways. However, a lack of money management can put you at risk of falling into debt. That’s why at Wizzcash we’ve come up with some top tips for breaking bad habits
Stick To Cash
One of the easiest ways to curb your spending is to start taking cash out with you. Many people find that their debit or credit cards are much quicker and convenient to use, especially while they are out and about, but excessive spending you can’t afford can affect your credit score. However, physically parting with your hard-earned cash is much harder than mindlessly swiping your card. So, if you take a set amount of cash out with you every day for your essentials you might find yourself coming home with change to spare.
Work Out Why You’re Overspending
Getting to the root cause of your bad habits will help you to break them. Perhaps you are prone to making unnecessary impulse buys or you haven’t set yourself a realistic budget. Identifying why you’re overspending will help you to take steps to prevent it, such as creating a budget or cutting back on the amount of time you spend shopping. Some people are triggered to spend money when they are bored or as a means of comforting themselves, so try to find a different activity to replace spending, such as exercise or socialising.
A good way to motivate yourself to save money and cut back on spending is to set yourself a goal. If there’s something you’ve seen that you’d like to buy, set yourself the challenge of waiting until your next payday before you buy it. Or, set yourself a bigger target such as saving for a holiday. This will encourage you to stop spending frivolously and you might even find that you aren’t so bothered about those new trainers by the time the month is up, meaning you’ll have more savings in the bank.
Tackling bad spending habits alone can be difficult. Try telling your friends, family or partner about your aims so they can help to motivate and encourage you. It’s likely they will also work as the much-needed voice of reason whenever you feel tempted to splash the cash too! If you find yourself in financial emergencies without the cash to spare to solve them, payday loans, instant loans or short-term loans may be available to provide help, but it’s important to remember that this is not a long-term solution. Instead, you should seek advice and help from professional organisations.
Set Up A Savings Account
If you haven’t already got one, set up a savings account which you pay into each month. You’ll have to determine how much you can realistically afford to set aside every month. Once this money has been paid into your account, make sure that you don’t touch it unless it’s an emergency. This will help you to break the habit of overspending every month, as you’ll be restricting the amount of money you have access to.
Generic advice is not a service regulated by the Financial Conduct Authority.