9 Ways To Spend Less Than You Make This Month

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For many people, panic ensues when they look at their bank balances or figure out which bills and other expenses they still must pay for the month. Fortunately, you can mitigate your worries by changing some of your personal money management strategies and spending habits. Take hold by spending less money than you make this month.

“Good money habits start with good behaviors,” said Lena Armuth, an advisor with Sensible Portfolios.

Here are nine behaviors to help you spend less than you make this month.

Pay Yourself First

“If you pay yourself first, meaning saving and investing before you spend a dime, you have no choice but to save the money you make,” said Nick Burgess, who runs the personal finance site Making A Millennial Millionaire. “Start small with 5% of your take-home, and then gradually increase your amounts as you feel comfortable.”

Automate Savings

“If you automatically move a pre-set dollar amount each month to a savings account or investment account, then you are forced not to spend it,” Armuth said. “Schedule this deposit at the start of the month or soon after your paycheck comes in. You’re only as good as your systems, so make saving easier.”

Prioritize Essentials

When you choose to spend money, make sure to spend it on what’s most important. Make a list of what you need to spend on, leaving out any unnecessary expenses.

“Prioritize your essential needs by reducing discretionary spending,” said Michael Hammelburger, a certified financial advisor working for The Bottom Line Group. “Begin by assessing your spending patterns and identifying areas where you can make immediate cuts. Consider bringing your own lunch instead of eating out, brewing your own coffee instead of buying it or opting for free or low-cost entertainment options such as going for a walk in the park or borrowing books from the library. You can save a lot of money by consciously prioritizing your essential needs and making small changes to your daily spending habits.”

Go Cash Only

“Leave your credit cards at home and go cash only for the duration of the month,” Hammelburger said. “Determine a fixed amount of money that you can spend based on your income minus necessary expenses. Divide this sum into weekly or biweekly payments. Withdraw the money and divide it into separate envelopes for categories such as groceries, transportation and discretionary spending.

“This physical separation of money can help you be more mindful of your spending and stay within your budget,” he continued. “When the cash in each envelope has run out, resist the urge to dip into other categories. This method establishes a physical link between your spending and your available funds, encouraging a more conscious and controlled approach to your finances.”

Ask for a Cash Discount

When you whip out your credit card to pay for an item or service, you run the risk of not paying the bill in full at the end of your statement cycle, despite your best intentions. You’re also saddling the merchant with a financial obligation, too — paying a credit-card processing fee. Those typically range from 1.5% to 3.5% of the total transaction. By paying cash, you won’t have the potential for debt, and the seller won’t encounter any fees.

“I love having clients ask if there’s a discount if they pay cash or if they pay [before the bill is due],” said Caitlynn Eldridge, the founder and CEO of Eldridge CPA LLC. “You never know what the discount could be.”

Shop for Groceries Smarter

You don’t have to wait for a sale at your supermarket to enjoy good deals on fruits and vegetables. Try exploring new options that allow you to save without compromising too much on what you’re looking for.

“Try farms, orchards and farmers markets, especially this time of the year. Search out places close to where the produce is grown — e.g., a farm stand versus a suburban market,” said Tanya Peterson, a vice president at Achieve, a digital personal finance company. “If you don’t need perfect-looking fruit, ask the vendor for any ‘B-grade’ fruit. There’s no difference in nutritional content or taste, but you often can save up to 50%.”

Review Your Subscriptions

“Many people overlook the cumulative impact of monthly subscriptions,” said Bill Holliday, a certified financial planner at AIO Financial.

He recommends doing a subscription audit, which is when you review your subscriptions to get rid of services you rarely or never use anymore.

Implement the 24-Hour Rule

“Impulse spending can quickly derail a budget,” Holliday said. “Wait for 24 hours before making nonessential purchases. This cooling-off period allows for more thoughtful consideration, reducing impulse spending.”

Avoid Paying for Services You Can Do Yourself

“Whether it’s spring cleaning, mowing the lawn, repairing siding or other simple home chores, there is no need to pay someone to do them for you,” said Young Pham, a financial advisor and investment analyst affiliated with BizReport. “Yes, sometimes you may be too busy to get to these things, but there will always be time to take care of one thing at any given week. DIY projects are good for your mental health and your pocket. Try them more often and see the results.”

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