Here is some advice on how to stop spending money. Whether you are having trouble paying your bills or simply want to save some money for a rainy day or a vacation, these tips will help you to get your spending under control and allow you to keep more money in the bank.
The first step to stop spending money is to work from a budget. Obviously you have to spend some money, but you need to plan for the necessities of life and stick within the framework of the budget. The extra money that you have is what you need to stop spending in order to save. I suggest that you divide the extra money into a few simple areas.
The first area to divide your money is into a category known as spending. Few people are as cheap as me and can actually go for a week or two without spending a dime on anything and be perfectly happy. American’s are spenders at heart it seems and think that spending money at the mall is a necessity of life. If you (or your spouse) are like this then put aside a small amount of money for this purpose. Many people actually have fun going to the mall with $20 or so and take all day to decide how to spend it. Personally I would just by a book from the bargain bin and hit the exit with the change, but I’m weird that way I guess.
The next area to consider for your extra money is short term savings which means your savings account. Things will come up that aren’t in the budget and aren’t big enough or important enough to dip into your emergency fund (you do have one right?). Something like a television blows up other small appliance kicks the bucket. And by having that extra money in your savings account it will make it a little easier to stop spending it.
The third area for the extra money that will keep you from spending it is to place it into a investment or a hard to access savings account. My wife and I have a savings account at a little Credit Union with one office on the other side of town. Why? Because we are unlikely to access that money for dumb spending purposes as it is difficult to get (we don’t have ATM access to it on purpose as well). The money is secure and out of our hands so we won’t spend it.
The most important thing is self control. If the recent economy problems teach else nothing else, at least we should learn to stop spending our money foolishly and save more for future need. If many of those in a tough spot now had saved or invested half the money they blew on nonsense they would probably be enjoying the time off of work.