20 habits to avoid wasting money

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

The formula for financial well-being is simple: spend less and save more. But this is easier said than done. To save a significant amount, you need not just save from time to time, but change your lifestyle. Here's a list of habits you need to pick up if you want to manage your income wisely.

1. Record your spending

Record your expenses and analyze them. You will surely see that you spend part of your income on nonsense without noticing it. This is the very first piece of advice you will hear from any financial advisor. You can keep track of your income and expenses in a regular table on a computer, in a paper notebook or in one of the special applications (for example, Mint, You Need a Budget or LearnVest).

2. Cook at home

Bills for lunches and dinners in a cafe accumulate very quickly. Therefore, the more you cook at home, the better for your budget. In addition, homemade food is often healthier than what is served in food service outlets.

On weekends, try to make blanks just a few days in advance so that you can put them in a container and take with you to work. Also consider purchasing a multicooker. Preparing food will take much less time, and the diet will become more varied.

3. Go to the store on a full stomach

Have a good snack before going to the supermarket. It would seem, what's the big deal - to go for food hungry? But believe me, this is a very expensive habit. Everything (especially fast food) starts to look very attractive, and you rush to put everything in the cart, including absolutely unnecessary things. Therefore, only go to the store when you are not feeling hungry. Both your budget and your waistline will thank you for that.

4. Go shopping less often

The less time you spend shopping, the less money you spend. Think back to your last trip to the store. Did you buy only those things that you really needed, or did you spend a little more than you planned? Perhaps you bought something cute but completely useless simply because the discount was too good?

This happens. It's hard to resist temptation in a store. Therefore, try to go there less often. Ideally, you can shop for a month in advance, and then run only for something that is not stored for a long time: for bread or dairy products. But start small. For example, if you're used to going to the store three times a week, try going only once this week. And gradually you will be able to reduce this number to a minimum.

5. Withdraw money only from your bank ATM

Sometimes it's too lazy to walk a block to your ATM. Or the commission for using another bank's ATM does not seem too high. But such small expenses add up to a decent amount. Therefore, the easiest way to avoid additional fees is to always use an ATM that has your bank's logo on it.

6. Stop buying coffee every day

David Bach in his book "" coined the term "latte factor". Its essence lies in the fact that many spend about 200 rubles in a coffee shop every morning. You can give up this unnecessary habit and save about 1,400 rubles a week, which is already 5,600 rubles a month.

Instead of disappearing at Starbucks all day, buy home a can of excellent coffee, even expensive. In the long run, this investment will pay off, and the drink will bring pleasure as much as in the most fashionable coffee shop.

Note that the latte factor is not just about coffee. You can buy the same bun, smoothie, or soda every day. And if you notice a tendency to mindlessly spend a couple of hundred rubles every day, try to save that money.

7. Automate your finances

Most bills can be paid online today, and many companies have the ability to make payments automatically. Try to automate your recurring monthly payments, such as phone and internet. Firstly, so as not to forget about them and at the most crucial moment not to be left without the Internet, and secondly, so as not to think about it every month.

The same can be done for variable costs. For example, you can immediately transfer part of your salary to your account, thus saving money for a large purchase or in case of an emergency.

8. Switch to cash

Research shows that people spend more when they consistently pay by card rather than cash. So if you want to curb your spending, go back to good old paper money.

The cash-only diet is very simple: you get rid of plastic, determine how much money you can spend in a given amount of time, and pay for everything in cash. When your allocated funds run out, you will have to wait until the next period.

Instead of blindly using the card, you can decide for yourself every time whether it is worth spending money on something or not. And you will see when the bills in your wallet have diminished and you should limit yourself.

9. Cancel the subscriptions you are not using 100% and pay as you go

Ditch all default subscriptions: magazines, cable, gym. And buy only what you really need at that particular moment. Instead of paying for hundreds of channels you never watch, buy episodes of your favorite TV series from iTunes. Pay for a visit to the gym every time you go there.

This method works for three reasons: you stop overpaying, you start thinking about your costs, and you value more what you pay for.

10. Seriously discuss spending with your spouse

You can be as frugal as you want, but if your significant other does not support your financial plan, you are unlikely to be successful. Therefore, learn to discuss personal finances, plan a budget together and control expenses.

Every couple should be able to talk openly about money. And no one will hold this conversation for you. Finances should be a priority for both, so you have to make compromises and negotiate.

11. Do not buy advertised products

Better take the most common ones. You need to decide on your priorities. You may not always be able to buy only the best (and a brand is not always an indicator of quality). Expensive products from reputable brands can hit your budget.

How can you save money? On items of personal hygiene, food, home clothes, products for pets. Think about what is really important to you and what you are willing to sacrifice.

12. Buy less meat

Less meat means less receipts at the store. Instead, try adding beans or vegetables to your favorite meals for a delicious meal. No, we are not encouraging you to go to extremes and go vegan. If you are a big meat lover, have one fast day a week. Even such a small step will save you money.

13. Enter a day without spending

Challenge yourself and try to spend one day a week without spending a single dollar. This will teach you to be more mindful of money and will help you understand that without spending money, you can feel quite comfortable. Instead of a crowded public transport - a walk, instead of lunch in an expensive cafe - a self-prepared dish.

Of course, it will not work at all without spending (you somehow pay rent or cook from products purchased in advance). But we will not take these expenses into account. Just spend the day without opening your wallet. This is quite within your power.

14. Shop for seasonal produce

The time of purchase is often much more important than the location. Seasonal fruits and vegetables are not only cheaper, but tastier in and of themselves. For example, in winter, cucumbers and tomatoes cost astronomical money, and in summer the price tag becomes much nicer. So try to make a schedule for yourself at what time to buy what.

15. Give up fast food

You only harm yourself (and your wallet) if you constantly snack in eateries. Alternatively, we advise you to start cooking yourself and take homemade meals to work. It will turn out not only cheaper, but also more useful.

16. Connect with people who admire you

To become rich, you don't have to worry about every penny. Here's a better idea: surround yourself with talented people who share your views and inspire you to take action. As they say, one head is good, but two are better. You will reach out for those who surpass you in some way, and you yourself will become better.

17. Disconnect all electronics when not in use

The family owns an average of 24 household appliances and gadgets. You waste electricity when they're just plugged in (even if you're not using them). The overpayment for the year comes out decent. How not to forget to turn everything off? Just connect all chargers to the surge protector and turn it off before bed.

18. Do not stuff the closet with unnecessary things

Looking for new clothes? Part with the old without regret: donate, donate to charity, just take the unusable one to the trash heap. So you can get rid of the tendency to collect unnecessary things in stores that you no longer like after the first publication.

19. Chat with your neighbors

Neighbors can become your soul mates in matters of economy. Lend each other things, let them rent, organize joint purchases. Not only can you save some money this way, but you can also build relationships. Believe me, living in a house with friendly neighbors is much more enjoyable.

20. Pay now to save later

Miser pays twice. In some matters, saving is harmful. For example, you have old wind-blown windows and therefore have huge heating bills during the colder months. Make it a rule not to skimp on important things.