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7 Ways To Cut Spending But Still Get The Good Stuff

7 Ways To Cut Spending But Still Get The Good Stuff

It’s no secret, money is hard to come by. Saving money has become the mantra for many households across the United States, with more and more families choosing to forgo quality for cost savings. However, this doesn’t necessarily always have to be the case. You can cut back your spending and still buy and do the cool stuff, you just have to find creative ways to stretch your dollars further. Here are 7 tips to help you get started down the path of cutting spending, saving money and still buying the things you want.

1. Practice self-control.

This is probably the most important piece of advice anyone could ever get. Have you ever wondered why there are shelves of stuff to buy located at the end of shopping aisles and at the cash registers? They are designed to entice you to make impulse buys, purchases you make just because something caught your eye. Impulse buys are true budget busters, and can derail even the most detailed spending plans in a matter of seconds. To avoid making impulse buys:

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  • Create a shopping list of the things you need before you leave home and stick to it no matter what.
  • Set aside a spending limit, no more than $10, specifically for impulse buys. This can give you a little leeway, but keeps your spending under control. If you find that you are tempted to spend more than your limit, choose to walk away and “think about it”. If you still want it, then you can go back and purchase it later.
  • Refrain from carrying large amounts of cash. Not only is carrying cash dangerous from a theft or lost wallet perspective, many people tend to spend more indiscriminately if they use cash rather than debit cards or checks.

2. Do your research before you spend.

While this generally applies to larger purchases, you should practice researching your purchases for all things. This means comparison shopping groceries, shoes, and even gas. This will help you get the most bang for your buck. When researching potential purchases, read reviews on well-respected websites and talk to people you know who have made similar purchases. Make sure that you check both retail and online stores for the best prices. Many stores will price match, even if the item was found online, so if you don’t want to wait or pay for shipping, take the advertised price into your local retail outlet and ask for a price match. This practice even works when certain groceries are on sale at one store and not your normal grocery outlet. Lastly, don’t forget to take advantage of coupons and mail-in rebates.

3. Keep a spending journal.

As you go throughout your day, jot down the things you spend money on. This includes all cash, debit and credit purchases. This will help you understand your spending habits and lets you know where your money goes. Add these purchases into your monthly budget so that you can see how this spending impacts your cash flow and reserves.

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4. Buy used and borrow if you can.

Borrow things from the library, from friends, and even from work. Buy used when you can’t borrow and leave purchasing new as a last resort. By buying used, you stand to save a substantial amount over buying new and you can usually upgrade to a better quality item. This is a great way to buy designer clothing and consumer electronics.

5. Take good care of what you buy.

Replacing items you have previously purchased is just a waste of money. Take care of the items that you buy and save your cash for something new.

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6. Disconnect extraneous services. 

Do you still have a landline phone? Do you also have a cell phone and a work phone? If so, odds are you are paying out too much money a month on services you don’t really need. Choose one line of communication and disconnect the other. Are you paying for premium cable in order to get one specific channel? If so, you can probably scale back your monthly cable bill and get the same programming for less using an online streaming service such as Hulu Plus or Amazon Prime.

7. Utilize your employer’s flexible spending accounts. 

Odds are, if you are employed by a large organization, you have benefits that you know nothing about. Flexible spending accounts give you an opportunity to allocate money, most of the time on a pre-tax basis, to pay for things such as medical expenses, child care expenses, transportation costs and more. Look into whether your employer offers such benefits and begin to spend on a pre-tax basis. This puts more spendable cash in your pocket every month thanks to a lower tax burden on your paycheck.

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

More About Thinking Smart

Featured photo credit: Austin Distel via unsplash.com

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