Top 5 Ways To Stop Spending Money Like You Actually Have It

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Though they say that money cannot buy happiness, the least it can do is let you know how many things you shouldn’t buy while miserable. The switch from currency that jingles and folds to bits of data that float around in the ether makes it more difficult to conceptualize just how much is leaving your pocket each day, week or month.

Tracking your spending patterns and expenses is a great way to know where your money is going and how much you’re spending, but it’s only half the boxing match, and your debt cycle has a killer uppercut. Finding ways to trim the fat helps you count the excess calories of your budget, and will produce the best results that allow you to build up your savings or emergency fund.

Any financial expert will tell you that the trick to not overspending is to stop pretending you have more money than you do in the first place. Here are the top five ways to quit living larger than your paycheck indicates you should.

No. 5: Put the Impulse Purchase Down, You Weakling

Your algorithm at this point essentially owns you and your tendency toward immediate gratification through impulse buying, but you don’t have to do what it says. You can be your own person. You can see an ad while scrolling through social media, read a blog recommending a product or spot something while standing in the checkout line and, you know, not shell out your hard-earned cash.

Miracles can happen. 

Protect yourself from impulse purchases with a 24-hour rule. With this rule, you wait a full day before purchasing an item you want. After waiting a full day, review the item and see if you still want it. 

Chances are you will not. Also, adding what you want to an online cart can simulate the feeling of purchasing without actually costing any money. You can take that tip to your bank statement and fast-track some savings goals.

No. 4: Find a Budget That Looks at You the Way You Look at Food

Eating is essential, but going into debt isn’t. Even if you don’t want to believe it, you probably do have food at home. It shouldn’t be surprising that going out to eat, getting takeout and ordering delivery balloon your monthly food budget. However, donut, or rather, do NOT kill your culinary vibe entirely, just cut down where you can to see where you can sprinkle in some savings. 

Over half of Americans eat out multiple times per week. To limit your spending, find meals to cook at home. A quick online search will provide thousands of recipes and instructions that you can use to make cheap and easy meals. Spending an afternoon prepping meals for the week can save you thousands over time — and is easier than expected.

No. 3: Ask Yourself — Am I Even Watching That?

Now that every streaming service is once again force-feeding you ads, it may be time to let some of your subscriptions go the way of cable or the dinosaur. You don’t need to pay to see how many things you can buy that you don’t need.

If you think you have a few subscriptions sneakily slipping through your funds thanks to autopay, check bank and credit card statements, look through your email inbox, and examine the settings in your phone’s App Store or Google Play store for active subscriptions. You can also use other apps to track and manage your subscriptions to make sure you’re not overpaying. 

No. 2: Dress To Impress … Your Financial Advisor

When you analyze your budget, also known as mathematically confirming your poor spending habits, make sure you leave room to keep yourself clothed, but not financially uncovered. Online shopping may make it easier than ever to purchase clothing, footwear and other accessories, but that doesn’t mean you should add to cart.

Switching your shopping methods from high-end or midrange retail stores to thrift and dollar stores can help reduce clothing expenses. Thrift stores sell secondhand clothing at a discounted rate, and bargain hunters frequently find items of good quality by carefully examining them before buying. Making older clothes new to you will mean more money to build up your emergency fund or put toward debt.

No. 1: Prevent Being Visited by the Ghost of Credit Cards Past

And now, the number one way to stop spending money like you actually have it is … to stop swiping your credit card like it doesn’t have a limit.

Credit cards often give people the illusion that they have more money to spend than they do, and much like the devil, the issuer’s greatest trick is convincing people that credit card funds are endless. Instead of being a convenient way to spend your money, they are more akin to little plastic grenades waiting to blow up your budget each month.

Abandoning credit cards in favor of cash or debit cards will guarantee you’re not accumulating debt. It’s possible to use a credit card to build up your credit score, but you must plan to pay off your balance each month to avoid interest, or having to regretfully rattle chains to serve as a future lesson to your spending habits. 

Credit cards, much like procrastination, are a great way to have fun in the now — until you get the bill. They are convenient but spiteful and can lead to massive financial setbacks when you don’t pay off your balance. If you’ve ever wondered if anyone would miss you if you disappeared, try not paying your credit card bill for a few months and see how many concerned folks start calling.

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