Whenever I think about personal finances, money management and wealth creation, of all the tips and tricks that are usually shared, most boil down to a single principle: curtailing spending.
It would seem to be the hardest thing to do especially with the ease that modern life brings spending literally to our fingertips and wallets. Everything is available online or for delivery as instant gratification is the goal and gift.
Also, because spending has become so ephemeral, there is a high level of disassociation as we are not usually seeing the money leave our hands. It’s all virtual, so for many people ignorance is bliss when it comes to certain spending habits, especially with credit and debit cards.
We have all adopted capitalist and consumerist habits which have assisted with the increase in consumer spending as the main driver of our economies, especially discretionary spending.
So how do you cope and ensure that you meet your goals around money?
Today I’m going to share some of my own strategies to curtail both my discretionary and non-discretionary spending.
Discipline is Key
It may seem obvious but at the heart of all efforts to curtail spending is a willingness to be disciplined and adhere to whatever measures of self-control you put in place. Impulse has a way of completely redirecting our intentions and derailing our plans.
Sometimes, the starkest way to maintain discipline is by reducing options as well as identifying triggers that may cause you to make rash spending decisions. When it comes to identifying triggers, I’ve gotten very good at recognizing the sweet spot that gets me to either make rash buying decisions or even consider buying something I never wanted previously. A big trigger for me is idleness but another I can admit to is envy and the need to either always grab an incredible deal or to get an item I want because I saw someone with something similar. From my own experience, we make many of our buying decisions based on endorsements from those closest to us.
One way I’ve sought to fix this is by unfollowing Fat Kid Deals on Twitter as a start because while it often has incredible deals, it is a major trigger for my impulse buying. Imagine seeing constant deals in your timeline. It’s much better for me to check out the account whenever I actually need something, just in case but it has proven unhelpful constantly exposing myself to a known trigger.
Shop with your eyes and not your wallet
We do this in real life all the time so you think it would be easy and straight forward but I have learned to shop with my eyes even with online sales and listicles featuring products. Sometimes looking is enough. My strategy to control my impulse in this regard is to create wish lists and air mark potential buy dates for certain items. Sometimes designating an item to ‘buy later’ as opposed to a ‘buy now’ is all it takes to save some money and prevent unnecessary spending.
Take breaks from online shopping as needed
Over the past 3 years I have made lent, my season of taking a break from online shopping. It’s a deliberate effort to truly curtail the amount of money I spend with online retailers because a convenient as it may seem, cumulatively, it adds up over time.
Instead, it allows me to explore local alternatives that for the most part I didn’t know existed because I seldom attempt to shop for certain things physically. You can either get the exact same item locally or something even better that is made here. Sometimes it’s good to go to a mall or store and check out what’s available. And while the prices might seem higher compared to the sticker prices we see online, when you factor in shipping and weight costs, it’s practically the same.
Sometimes the reflex to just source a product online is so easy and compelling we forget that most things can be gotten locally. Case in point, I recently broke my reading glasses and needed a new pair. The original was purchased online but due to my ongoing online buying pause, I decided to do a quick search online and was able to source a 3-pack at Pricesmart at a great price, sans the shipping cost.
Compare prices everywhere!
Price comparison shopping is one of the most basic exercises we do when trying to save money on our spending. Looking for the best price on any item or service should therefore come naturally, and it’s much easier than you think. Most people may have a favourite place to shop, but it’s helpful if that place is already giving you discounts and the best deal, when compared to a competitor. It’s much easier to do it online because everything is laid out before you, but there’s no shame in visiting different supermarkets for example, to see how the other folks live and the prices they experience. You would be surprised by the mark up in price between two almost neighbouring supermarkets. And while the shopping experience may be different, don’t pay extra for the basics due to ambiance.
Cancel those subscriptions you don’t use
I can bet if you check the monthly charges to your credit card or even things you have setup up on your debit cards, you will find that some of the services, you don’t actually use or need as much of. You would be surprised sometimes what subscriptions you have lurking around, that gets charged to you maybe once a year. For example, some years ago I had done a subscription to amazon newsstand to receive National Geographic Magazine because I love reading the articles and full issue. However over time I discovered I could never keep up, and while the subscription renewed each year, in stealth, I was not interacting with or consuming the content.
So after going through all my subscriptions on the platform I decided to remove it and save myself from that renewal for this year. It is always a good idea to select a reminder preference for all renewable services to ensure that you have a prompt before they are up for renewal.
What are some of your tried and true ways to curtail your spending? Tell me in the comments.
Be inspired, Be informed, Be Glorious!
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Kevin