You kick-started the month by spending only on your essential utilities. You did not buy anything during the major sale going on at H & M, Zara or Adidas. But, then when you got to know about the next season sale and you couldn’t resist this one… then it all went downhill from there.
Do you know why this happened?
Well, simply because you could not resist the pull of spending money on clothes. Honestly, this is not considered to be a good habit because it disrupts your entire monthly budget and you end up feeling guilty, even if you do get to feel fab for a few hours in your new outfits.
In order to surpass this situation triumphantly, you can follow the tips mentioned below:
#1-Write down your triggers
There are several psychological and emotional triggers which can compel you to spend on shopping. If you can pin-point and reduce them, you definitely can avoid this trigger.
This could be during a particular time of the day, may be free delivery or 10% off offers on fast food before lunch time. Apart from timing, your surrounding environment also plays a significant role. If you have friends, co-worker constantly talking about the recent Zara sale or how beautiful H&M collection was then you surely will be tempted to shop for something.
Besides, your mood can also trigger you to shop. For instance, if you visit the mall with an upset mood with an intention of getting it uplifted then baby you are wrong!
In fact, you will end up buying something or the other for yourself.
If all these or any of them trigger you then probably prepare a list so that the next time you are tempted, you can put it at the back of your mind.
#2- Track your spending
An additional expense of new dress can also disrupt your entire month’s budget. This is one key reason why you should keep a constant check on your spending habits. Take into account your fixed monthly expenses like rent, grocery, bills, etc. and then make room for some additional expenses.
Based on these, you can save the rest of the sum. You can maintain a journal to keep track of your expenses. If you are not good with this, you can install an app which can calculate on your behalf. If you are absent-minded then set a reminder for bill payment so that you do not skip its due date.
Constant delay in bill payments can affect your credit score which does not give away a good impression. Besides, it is important to keep a check on policies you are paying for, if any.
If you note sudden increase in charges of the policy, you can always contact the financial institution and clear your doubts. Individuals these days are getting their old policies checked by applying for free PPI check just to assure that unknowingly they are not a victim of the mis-sold scam.
#3-Minimise the use of credit cards
It’s easy to swipe your credit card for the new dress that you just liked but do you regret doing it two days later? A major loo-hole with credit card is that you do not keep account of the swipes and end up shocking yourself on the last day of the month when the bill arrives.
However, if you make cash transactions the probability of landing in this situation reduces. For a month you can try not using your credit card and then result would be right in front of your eyes.
All you need to do is not swipe your credit card for next 30 days. Calculate an estimated amount that you probably will need for the month, go to the ATM and remove that sum.
Make use of this particular sum for the entire month if and only when you feel that you are running out of cash then go to ATM to remove additional cash.
#4-Prepare Short term financial goals
Goal setting may seem like a fascinating task, but it is equally important to set effective goals. One way to set effective goals is to set SMART goals which includes specific, measurable, attainable, relevant and time-bound.
This can be a motivating task and you do not get easily distracted considering that you have put in so many efforts.
Specific goals could be decreasing the number of times you eat out, go for parties or clubbing, weekend trips, etc. Start saving small amounts and you can gradually increase the amount to save significant sum, to a point that you save 10% of your income.
#5- Every little counts
As every drop is essential to build an ocean similarly every pound counts when you are on a saving spree. Keep tab on every pound that you spend and make sure that you have optimally used it.
Bridge a gap between your desire and wants as this way you can avoid spending additional pounds on your desires. If you can walk to your office then do not waste money on cab trips. Instead, wake up early and walk down the street as you will save money and maintain your health at the same time.
To avoid late bill payments because you are broke at the end of the month, make it a habit to pay your bills right at the start of the month.