If you’ve been tracking your expenses you may have a good idea of what your spending habits look like. If not, go back to the blog and read Awareness and Budgeting.

Most people spend more than they realize on various categories, even after making a budget. But a budget only works if you follow it. If you are consistently going over budget on things, you might need to reconsider the amount you’re planning for.

You want to make sure you are designating enough for your priorities. Shelter, utilities, food, and transportation are all essential and should be prioritized in your budget.

You can hack these costs to some degree, but if you’re spending more than what you have left on other things, something is going to come up short. If you continue to overspend, you will dig yourself a hole that will be difficult to climb out of.

There are lots of ways to help you manage your spending. Some methods work great for one person while not so well for another. Try a few and see what works best for you. Here’s a few I recommend to those getting started.

The Cash Method

If you find yourself swiping your debit card without thinking, maybe you need to change this habit. If not, you might find yourself short on money you need for necessary expenses when the bills are due.

Try carrying cash instead. After you make your budget for the month, leave the money you need for the bills in your checking account and withdraw spending money in cash.

Psychologically, it’s more painful to spend with cash than it is to swipe a card. You have to physically give your money to purchase whatever it is you’re buying. You don’t think twice about it when you use a card.

Try the envelope system. You can use actual envelopes or a wallet that has several compartments. Separate your spending money into categories like gas, groceries, dining out, clothing, hygiene, entertainment, personal spending, etc. Use the categories in your budget as your guide.

Remind yourself that when the money in an envelope or section is gone, it’s gone. You can’t replace it until next month. When you see it getting low, you’re more likely to think twice about spending the rest of it before you get closer to the end of the month.

You might even try dividing your monthly spending limits into weeks instead of for the month and carry only what you need based on that number. If you do it this way, pick a day of the week to replenish and don’t replace the money early. If you spend it all and there are no consequences, you learn nothing.

Make a Wish List

I don’t know about you but I have a bad habit of buying something I think I need or want and then wishing I hadn’t. Half the time I couldn’t even tell you where it is a week or two later. Sometimes I find stuff around the house that I don’t remember buying. There are plenty of kitchen gadgets I’ve never even used, or maybe only used a time or two.

This is wasteful and unnecessary. It causes clutter and takes money out of my pocket that I could have put to better use elsewhere.

Something I’ve found extremely helpful is making a wish list. If I find something I want, I put it on my list and hold off on the purchase. The more expensive the item is, the longer I wait before considering actually making the purchase.

For random stuff, I add it to the list and check it on Sunday. If I still want it, it stays on the list. If not, I delete it. I’ve saved a lot of money and closet space by doing this.

As far as how long you wait, you’ll have to determine that. If it’s typically something inexpensive, maybe a day or two later is a good time to think about it again. If it’s more expensive, maybe you need a week to decide if you really want it. If it’s really expensive, I’d give it more time.

Waiting gives you time to think about why you really want something. Is it just because it’s cool? Is it because someone else thought it was cool? Or because everyone else has one? Are you really going to use it? Is there something else your money is better spent on? Are you going to regret it? Is it going to end up in a closet or junk drawer? Put some distance between you and the thing before you spend money on it.

Summary

• If you want to meet your financial goals, you have to learn to control your spending.
• Whatever method you use, stick to it.
• Accept the consequences as a learning tool. Hold yourself accountable for your actions.
• Don’t buy anything mindlessly. Give yourself time to think about it first.
• Don’t buy things you don’t need or won’t use.

One more tip, if certain places tend to be too much of a temptation, don’t go in the store. If you need something from there, order it online and do a curbside pickup.

With enough practice, you’ll find it gets much easier to say no to random purchases. And when you realize how much you’re saving by avoiding unnecessary spending, you’ll have even more motivation be conscious of your habits.