Lifestyle

Improving Your Spending Habits: Tips For Spending Less And Saving More

By Ryan Bradman | March 27, 2024

It’s arguably the hardest time for people to avoid unnecessary spending and losing their savings. From online shopping to branding and advertising, we are constantly bombarded with opportunities to spend money on new items or services. If you’re finding it difficult to save your money due to your spending habits, there are a number of steps you can take to help improve this.

In this guide, we’re going to be covering some of the best tips and strategies to avoid unnecessary spending, cut down on monthly costs and bills, and increase the amount of money you can put away into savings and investments. To learn more, take a look at some of the following tips and suggestions we’ve put together.

Improving Your Spending Habits: Tips For Spending Less And Saving More

Cutting Down On Unnecessary Spending

One of the first things you can do to help with saving money is to address areas where you might be unnecessarily spending money. For example, consider the type of items you might be buying and whether or not you really need them. Instead of buying a brand-new mobile phone, consider contacting a specialist repair service instead.

They can often get your device repaired within the day, and the cost will be significantly less than investing in a brand-new device. Reviewing your receipts and bank accounts can help you find areas you might be spending too much in, such as eating out or clothes shopping.

Reduce Monthly Bills

Reducing your monthly bills is one of the best ways to help with negative spending and increasing the amount of money you have left to put into savings. Some of the bills you could consider cutting out completely include bills such as TV streaming subscriptions and gym memberships you don’t use.

You should also look into your monthly utility bills – how much they are charging and any potential increases that have changed. Research other providers and how much money you could be saving if you were to switch. Sometimes, your existing provider will offer to reduce your monthly bill if you choose to stay with them rather than moving to one of their competitors.

Mortgage and car finance payments are often the biggest investments and monthly bills people have to deal with. If you’re living with a partner, consider whether you could both share a car rather than running two or more cars. This can leave you with much more of your income that you can use to save or spend on other areas of your life such as holidays.

Look For Bargains and Deals

Saving money doesn’t necessarily mean that you have to stop spending altogether on the things you enjoy. Rather, try to be more strategic about how you’re spending your money. Look for deals and bargains on things you were thinking of buying. Buying clothes out of season or during big summer or winter sales can often lead to some great savings.

Instead of buying items immediately, consider waiting until there is a big sale, such as Boxing Day sales or black Friday deals. Researching other places to buy items that might be more cost-effective can help save money, or finding coupon offers can help reduce the price.

Avoiding Impulse Buying

Avoiding impulse buying is one of the hardest habits to shake when improving spending habits. The rush you can get from buying something new can become addictive, so it’s no wonder it’s one of the biggest money struggles many people can face. To help with impulse buying, try going out with only cash and no card to limit the amount you can spend. You could also set aside a certain amount of money each month that you’re allowed to spend on non-essential items.

Try to consider some of the bigger things you’re trying to save your money for when out shopping to help prioritise your spending. Think about how each item you don’t unnecessarily spend on can help to put more numbers towards your savings and how much you will feel you’ve achieved when you reach the savings goal you have in mind. Rewarding yourself with more cost-effective rewards such as coffee or takeaways rather than cocktails or expensive meals out can help save some money when you’re out.

Don’t Give In To Peer Pressure

Many of us feel the need to spend on items we don’t need due to trying to keep up with friends, family, or colleagues. It can be hard to avoid spending when these pressures surround us, but it’s important to try not to allow them to control our spending decisions. Think of the bigger picture when deciding how to spend money, such as more important savings goals rather than more frequent and unnecessary purchases. Explaining to others that you’re trying to save money and why you’re trying to cut costs can help them understand and reduce the pressure they might intentionally or unintentionally place on you to spend your money.

Making Positive Investments

Investing your money in the right things can actually lead to increasing your income. For example, investing in property or renovating a home to sell or rent out can help to create additional income or profit after an initial investment. Investing in stocks or dividends can help to create compound interest and additional interest if you make the right investment choices.

When investing it’s very important to remember that you’re not guaranteed a return on your investment, and you should only ever spend money that you can afford to potentially lose. Investment budgets should never be drawn from your main savings or emergency fund. Investing in improving your home or car can be a positive choice as it can help improve the value of an asset if you were to sell it or rent it out in the future.

Creating Separate Savings Accounts

Many banking apps now offer the chance to create separate savings pots for different areas of your life. For example, separate savings for a house deposit, holidays, or Christmas and birthdays. This can help you get a better idea of where to prioritise savings and how to allocate your money to reach your savings goals. It can also help to motivate you to save more money and reduce your spending as you see the figures in your savings accounts go up each month.

Buying Second-Hand

Buying second-hand pieces such as clothing and furniture is a great way to help you save money and still get the items you want. For example, upcycling furniture is a great way to reduce costs when moving into a new home, as well as create the opportunity to be more creative. Learning skills such as how to repair and upcycle furniture or even create your own clothes is a fun hobby and can lead to big savings over time.

What’s more, you’ll also end up with pieces of furniture and clothes that reflect your unique tastes and that are personalised to you. Charity shops, vintage markets, and online marketplaces are good places to find second-hand bargains and unique pieces. Not only will you be saving yourself some money, you’ll also be doing your bit for the environment too as buying second-hand is far more sustainable for the planet.