Know Your Triggers
Spending money thoughtlessly is what gets too many people into trouble and in financial positions they do not want to be in. It’s important to know why your spending, but also what triggers you to overspend.
These are common triggers for other overindulgent habits:
- Time of Day – Let’s say you frequently shop for groceries after work. You may want to consider shopping when you have more energy to make wise purchase decisions instead of buying at the end of the day when your energy is low and you make rash decisions.
- Mood – Think about the last time you spent money unnecessarily. How were you feeling? Know the moods that trigger you to overspend and stay far away from the temptation at those times.
- Environment – What’s going to a mall or a favorite department store going to do for you? Likely, it will make you want to shop or tempt you into spending money you don’t have. Only take cash with you next time so you stay within your limit.
- Lifestyle & Social Media – While there are great benefits to social media, it can cause what is known as FOMO or the fear of missing out. If you see others living a certain lifestyle, it may trigger you to purchase items to have a similar life, so you feel a sense of belonging. Remember, you never know if they are living beyond their means.
Do any of these sound familiar to you? Create a game plan for avoiding these triggers or an alternative option when you feel the urge to spend because of these scenarios.
Think About Your Company
Change how you spend time with your friends. Certain friends tend to cause you to spend more money based on the activities they choose to do. Instead of a night out, ask them to come over for dinner instead and have them bring the drinks or snacks. You will be surprised at how much money you can save and still have a great evening.
Track Your Progress
Keep track of what’s going out of your account and into your savings each week. Knowing you are doing well can be motivating!
Budget, Budget, Budget
Create your budget and do your best to stick to it. You may need to adjust the budget depending on what new bills, payments or plans come up, but you will have a better idea of what you can afford, as those things present themselves.
If you’re ready to get serious about saving money, we can help you. Talk with a Personal Banker today on what Savings Account is right for you!