Cutting back on wasteful spending will help your bottom line no matter how much money you have. Wasteful spending is unwanted spending, and spending less on things that don’t matter leaves more money for the things that do matter. The great thing is, if you’re looking to reduce your wasteful spending, there are numerous small ways to cut back. And cutting back on the small things will help you make the more important change, which is changing the way you think about spending altogether.
1. Cook instead of eating out
One of the easiest ways to overspend is by regularly eating out. Restaurant meals don’t necessarily seem like big expenses, but they add up. Although cooking all your meals at home can seem like a big time commitment, you can actually minimize the time.
2. Buy used
You’ll pay a premium for almost anything you buy new, but a lot of products are equally good whether they’re new or used. Before you buy something new, check online stores, OLX, and classified listings to see if you can find the same thing used.
3. Keep out of the coffee shops
You can save a considerable amount of money simply by purchasing a Thermos and taking coffee with you, or making a pot at the office where you work. While the supposed convenience of the coffee shop is an attraction, when the length of the morning queue and the price are factored in, making your own coffee is the superior choice.
4. Cancel your gym membership
Unless you happen to be a body builder, there is little reason to pay for a gym membership. By combining calisthenics (like pull-ups and push-ups) and cardiovascular exercise (such as running or jumping rope), a person can maintain high levels of fitness with virtually no equipment.
5. Add up what you spend
Keeping track of spending is the type of advice that almost everyone “knows” already, but few people actually do. It’s easy to put off, and keeping track of your spending takes a commitment over time and can force you to confront some uncomfortable truths about how you manage your money. Nonetheless, almost everyone who takes the time to track every penny of their spending for at least a week is glad they did.
6. Think of a purchase in terms of hours worked
Instead of thinking about a purchase as a proportion of your whole paycheck, think about it in terms of the hours you have to work in order to buy the item. The reason for this simple: your paycheck is usually a lot bigger than a single purchase. Any one item is going to be much closer to your hourly wage, so it helps keep in perspective the effort you put into every purchase you make.
7. Save something
Even if you can only save a penny, save something each time you get paid. The process of saving becomes a habit, like anything else. The habit will reinforce itself, and you’ll want to save more and more.
8. Buy what you need, not what’s on sale
It can be tempting to spring for a sale item. Making a buy at lower than market price makes us feel like shrewd, savvy shoppers. However, it’s a good way to spend more money than you planned on spending. Instead, just buy what you need. If you want to feel shrewd, find discounts on the item you’re already going to buy.
