Spending Management

How To Get Started, Creative Ways to Manage Your Spending

Ways to Get Started with a spending management plan:

Begin where your spending is most impacted and figure out what is preventing you from reaching your financial goals.

• Make a commitment, and truly have the desire to change and succeed.
• Take a look at where you are right now and work on ways to improve
• Spend less than you make.
• Every month, Plan, Track, Compare and adjust. This is the heart of spending management.

Creative Ways to Manage Your spending:

Establish self-discipline. It's important to think about what drives you to spend money in the first place.  When shopping, avoid over-spending by putting yourself on a time limit. Know what you need, make a list and stick to it.  

Determine how much money needs to be spent each month in every area of your budget. Since the basic idea behind budgeting is to save money there must be a commitment to stick to the budget.

If your income does not cover your expenses each month then you need to reduce the money you are spending.  Make a realistic budget and see where you can start trimming. 

Shopping when hungry. Never shop for groceries when hungry.  If you are hungry, you will buy it.  Always eat first, it will make sticking to your grocery list much easier.

Shopping when depressed. Depression mean sadness and shopping can be pick-me-up, however it's a dangerous time for over-spending.  If you're feeling depressed, find another pleasure to take it's place.

Credit Cards.  Keeping a credit card for emergencies is an excellent idea, but keep it to emergencies only. Buying non-budgeted items should be avoided, especially if those non-budgeted items end up on your credit card. Until your spending is under control, discontinue the use of your credit cards. Use cash or checks. 

Shop around before buying and learn to say no. Keep a record of spending and purchases and share these with your household partner.

Learn to 'Pay Cash'. Don't use your credit cards.  If you don't have the funds, don't make the purchase.

Create a wish list. Whenever you feel the need to buy something that is not budgeted,  put it on the list, then wait seven days and find two additional prices for the same item, to be sure you are getting the best price.

Keep your family involved. Have a weekly family meetings and review your weekly spending. Of course you and your spouse must work together but, why not educate the kids about spending management too?

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