While passive income ideas are great for generating extra income in a given more, it will not help your overall finances if you continue to spend more than you can afford, wiping out your bank account and building up credit card debt. Curbing overspending will really free up extra money each month so you can put towards more important areas such as building up an emergency fund, paying off debt, or saving for retirement. It will take some effort on your part, but with a few improvement you can keep some of your hard-earned money that is typically flying out the window.
Ditch the Credit
While sure it’s nice that your credit card is accepted anywhere with an easy swipe, that can also be your downfall as you actually don’t see money leave your hands, so it may be a good idea to use cash instead of credit for a while to fix your spending issues. Not only will you see the money go into the cash register, but it may cause you to re-think your spending to make your allocated amount last until the next paycheck.
Get a List Together (and Make Sure You Eat First!)
Impulse purchases can make up a large part of our overspending, whether it is continuously adding items to our online shopping cart, or in-store wants. Whether you’re going out or staying home and shopping in your pajamas, it’s a good idea to get a list together so you can stick to that, and something that comes up along the way, add for next time, and see if you still want it a week or two down the road when plan to shop again. When you do leave the house though, it’s a good idea to shop on a full stomach, especially grocery shopping, so you don’t waste money on unnecessary snacks, not to mention unhealthy options.
Try Grocery Shopping Instead
Speaking of the grocery store, one of the best ways to limit overspending is to reduce going out to eat and prepare your meals at home. Whether it’s stopping for coffee every day or grabbing carryout for lunch or dinner, not to mention going out to your favorite restaurant, food expenses can add up quickly, and for a fraction of the cost you could try grocery shopping instead. Not only could you save hundreds of dollars a month, but you can probably shed some pounds as well from eating healthy at home.
Track Spending
If you still find yourself spending too much every month, take a look at last month’s debit or credit card statement and actually go line by line to see every purchase made. If you share the card with your significant other, make sure you’re both on the same page as well so one isn’t continuing down the path of a mound of debt while the other is doing their part. It will take discipline, but hopefully after a few months of seeing extra money pile up, it will get easier.