It’s easy to say that you’re going to write a budget and stick to it, but for many, spending is much more emotional than it is mental. This is why simply budgeting isn’t always the best, or should we say the only, solution to curbing your spending habits. In many cases, you’ll need to rearrange your whole life and make some tough decisions to turn your financial situation around. Here are a few tips you can follow to keep your shopping under control.
Use the PERK Method
One blogger found a great way to budget without actually budgeting. One of the many reasons people don’t budget is simply because it’s too complicated. With the PERK method, all you have to do is compile your monthly expenses, and assign a P to expenses that can be postponed, E for those you can eliminate, R for those you can reduce, and K for those you have no choice but to keep. Just by doing this, you could easily save hundreds of pounds per month.
Create a Shopping Buffer Zone
If you want to buy something that isn’t essential right now, see if you can wait 30 days and still want it. In many cases, this will give you a clearer idea of whether you actually wanted it in the first place. Take a photo of the item, and put it on a “buyer’s board” of everything you want to buy. Make sure that you note the date you put it there as well. This way, you’ll be able to organise your purchases better and take things down whenever you don’t feel like buying them anymore.
Keep Debt Under Control
Consider cutting up some of your credit cards, and only keep one or two of them in case of emergency. If you don’t have a credit card at the moment and need money for an important expense or an emergency, consider getting a bad credit loan instead of applying for a credit card you may not be accepted for. Payday loans, for instance, don’t require a credit check and won’t hurt your credit rating in the process.
Supplement Your Income
Many times, personal finance advice concentrates too much on cutting expenses, but there are tons of ways that you can maximise your income instead.
Ironically, shopping could be the solution here. Just working as a mystery shopper could allow you to get cash back on some of your expenses, or even eat for free at certain establishments. There are tons of other ways that you can get more money in your spare time. One thing you could do is learn a trade that will allow you to be self-employed and complement your income that way. Or, join the gig economy and trade your services if you have a particular skill or talent.
Keeping your spending under control can be a challenge. But with the right amount of discipline, a clear plan of action, and by being dedicated, it’s one anyone can surmount.