Stop buying things you don’t need – to save money or to join the minimalism trend.
Spending your money on something you don’t really need is not only harming your financial plan, but also unnecessary. This wasteful activity could use up all your money without you realizing it. To stop this, you need a set of mindful steps that will change your spending habit. Here are the five steps to stop your unnecessary spending.
1. Budgeting always comes first
Yay! It’s payday, your bank account is filled up, your online wishlist has way more items than you need, and you just want to shop, shop, shop.
Stop it. Please. Right now. Limit your spending by always making a budget first. Divide your salary into several funds by using 50-30-20 budgeting rule – 50% of your salary will be your daily needs fund, 30% for hobbies, and the remaining 20% for saving. This rule helps you when you’re not good at budgeting. But even if you are an expert at it, you can still use it to make a better plan to tighten your budget. This way, you can minimize unnecessary spending.
2. Stick to your shopping list
After budgeting your income, the next step to do is to make a shopping list. This list contains detailed things you need, such as home care, body care, groceries, etc. The list will help you limit your expenses. When you go shopping, bring your list and stick to it. Restrain yourself from impulsive buying so you will only put the necessary goods into your shopping cart.
3. Walk away from the temptation of promotions
Whenever you go shopping, your attention will immediately be diverted by the word SALE. But, do you really need that discounted item? To answer the question, let’s go back to the previous step. You already made the shopping list before shopping, so check your list and ask yourself, “Do I need this? Will I need it anytime soon? Did I buy one already?” If you haven’t bought it, you can go buy the discounted item, but if you’ve already bought that stuff or you won’t need it anytime soon, you’d better ignore the promotion. Trust us, the same or similar item will be on sale again in a few months.
4. Pinch every penny
When you buy something with cash, you probably will get small changes. After receiving it, you must hurry to save the changes to your piggy bank, so you won’t have any left-over money to spend. After a while, your piggy bank will be full and you can move it to your bank account. Every penny counts, so don’t waste it.
5. Tell others you are on money-diet
When you hang out with friends, it’s better to tell them that you are on saving money mode. That way, they will understand your situation and won’t invite you to fancy, expensive places. Another way to do it is to offer your house to be a basecamp for hanging out. There are lots of fun things you can do in your home without wasting money.
Splurging your money on unnecessary things doesn’t feel wasteful at first, but if it continues, you will spend a fair amount of money over a course of time. Therefore, you must refrain from purchasing superfluous things.