Here’s a little about my spending habits. I have this habit of buying all sorts of random objects because I want to “enjoy my human experience”. I collect all sorts of souvenirs and fancy stuff that catches my attention. I also enjoy eating out a lot. I don’t have a shopping problem, but that’s because I’m pretty indecisive.
Well, that all changed when I tried to track where close to $2000 had vanished to in a few days. I had no idea where the money had gone. It had slipped right through my fingers. That’s when I knew I had a problem. I began this whole journey of getting financial knowledge and understanding myself. I have quite a bit of advice that I have gathered through my journey of simplifying spending and saving money.
Without further ado, here are my 9 tools to help you simplify spending and save money.
9 Tools to Simplify Your Spending and Save Money
1 – TRACK ALL YOUR EXPENSES TO CURB SPENDING
I’ve been reading The Compound Effect by Darren Hardy. He talks about this magical tool to help you kick-start new habits. After a few chapters, he reveals that the tool is to track everything. He gently suggests it, but he says that if you really want to see results, you better do it or else… It’s like he swears by tracking. If you want to reduce your spending, track your finances. If you want to lose fat, track whatever you shove into your face (his words!)
2 – BE INTENTIONAL ABOUT SPENDING LESS
After tracking your spending habits, what you want to do is to be aware of whenever you go wrong. That’s always the most important step for changing habits. The thing is, you can’t change all at once, all in one day. It’s kind of hard, as I know from experience. Don’t beat yourself up for not getting it right on the first try. The first try should be you getting aware and noticing what you have been doing. To be honest, most of us sleepwalk through our expenses. We aren’t mindful of what we purchase. You need to clear that from now on, you are going to choose what you buy.
3 – FIND OUT ALTERNATIVES IN ORDER TO SAVE MORE
My first tool for simplifying spending and saving money is to find alternatives for your daily expenses. You’d be surprised to know that some of your expenses can easily substituted for something less cost-efficient. If you have a Starbucks every single day, that money is slowly adding up. In 5 years, you’ll probably have used thousands of dollars just on that one drink a day. It’s the small habits that add up and bite you in the butt. You can start by buying the Starbucks beans and making your own Starbucks drink. You’ll save so much just by brainstorming on some ideas!
4 – FIGURE OUT IF IT’S REALLY NECESSARY IN YOUR LIFE
How do you simplify your spending and save money? You need to do some soul-searching.
Is that Forever 21 belt really necessary in your life? How about that BEAUTIFUL ornate wall clock? You need to start taking a pause before every purchase before your impulse runs away with your wallet. Start taking a pause before every purchase. Do you really need it? How about in 2 years – will it still have value? That brings us to our next spending tool.
5 – MEASURE ITS VALUE IN THE NEXT FEW YEARS
Remember that Forever 21 belt? Is it going to last you for a long time to come? Or is it super cheap and will probably break while you’re wearing it the first time? Some stuff you can just tell. They look super cheap and flimsy. That belt won’t last a year. It has a pretty low impact in your life. That is one thing you definitely don’t need to be buying. Hopefully if you kick out purchases like this, you will simplify your spending and save money.
6 – ONLY BUY WHAT SUPPORTS YOUR VALUES
How do you simplify your spending and save money? Probably stop buying cute notebooks.
What are your values in life? Don’t worry if you don’t know what they are – I’ll guide you. For example, I’m a total book worm, and I don’t remember the last time I went to a party. If I buy those HOT amazing heels or a stunning LBD for my next party, that just doesn’t make sense. However, I love to go to cafes and they really bring me joy. I’m totally going to spend money on a café. I also spend money on notebooks that I never use, so I’ve decided to stop buying cute notebooks until I find a use for the others I have in a shoebox under my bed.
7 – DISCOVER YOUR STYLE
Back to our Forever 21 be-sequined belt. Does that match your personal style? Yeah, it looked good on the mannequin, and went well with whatever the mannequin was wearing. But does it match YOUR style? Look into your wardrobe. All I see is muted and block colors like beige and black. That belt does not belong. It’s something you will stash into the very back because it clashes with your aesthetic. Ditch the belt because it won’t simplify your spending and save money!
8 – GO ON A CHALLENGE TO SAVE MORE
How do you simplify your spending and save money? Go on a one-week no spend challenge.
I think going on challenges is a pretty cool thing in life. People should go on challenges more. It gives life some spice if you ask me. Browse Pinterest for challenges, and add them to your bucket list. I went on a raw food challenge and I ate only fresh fruits and vegetables for 10 days! It was awesome. Try out a minimalism challenge, or no-spend challenge to help you ease into a new lifestyle.
9 – SAVE MORE TO SIMPLIFY EXPENSES
In Darren Hardy’s book The Compound Effect, he talks about this secretary who used to work for him. She attended one of his lectures where he talked about saving 10% of your income every month. After the lecture, she burst through his doors and told him that was just impossible and she needed a pay raise. She made 40,000 dollars a year and literally could not save because she had so many financial obligations.
He helps her out by starting small changes so she can save 2% and keep increasing that figure over and over. He gets her to cancel her TV subscription because it’s just mindless entertainment. He gets her to bring a homemade lunch twice a week so she can save the money that she uses for the deli. They come up with ways to cut her spending and she manages to get her savings to 10%.
Well, since she didn’t have any more TV to watch, she joined some creativity workshops. She learned to meditate more. She started coming up with all these ideas that she shared with her boss, and asked for a cut if the idea worked. As time went on, she got too big for her secretary job and went on to pursue her own company. His principles worked because a few years down the road, she was a millionaire.
The Takeaway
What you should takeaway from this post is that it’s the tiny habits that snowball and cause you to have all these spending problems. Start with tiny things you can live without. Kick them out of your life. Use one or two or all of these tools and start to see the difference. I hope they will help you to simplify your spending and save money! Be sure to scroll all the way down and comment some of your tips to simplify spending and save money!
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- 7 Tiny Ways to Get Your Life Together
- My 7 Productivity Life Hacks for Lazy People
- 10 Productivity Tips That Personally Help Me Stay Productive Every Day
- How to Develop Good Habits
- Top 10 Stress Reducing Habits
- 7 Ways to be More Positive in Life
- How to Trust Yourself More
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