Changing Spending Habits?

boo80

I know that so many of you have managed to totally change your attitude to money and your spending habits, how have you done it?

I don't really know anymore how I am with money as it's been so long since I've had any, but I used to spend it as soon as I had it, it was like I couldn't just have money, it needed to be spent! I still seem to spend it all, but I'm not sure if this is because I'm on a tight budget (and have 2 under 5 yr olds who always need shoes, or clothes, new uniform etc) or because I'm still c**p at holding onto cash.

So, does anyone have any tips on not spending every last penny? Are there any reformed shopaholics out there wishing to share some advice?

climbgirl

Set yourself a challenge and turn it into a little game - you're only going to spend £x this week on food or coffees or whatever it is you choose. If you make it a challenge for yourself it becomes fun as you look for ways to make your target. Much less of a chore.

Work out how much money you're wasting on things you don't need - clothes, snacks, coffees, whatever you're spending on. Work out roughly how much it is each year. Then work out what you could do with that money instead - go on holiday, buy a car, save for a house deposit, whatever. Cut out pictures of a beach/car/house and keep them in your wallet, on your desk, anywhere you can see them. Whenever you want to spend on something you don't need, remember what you could have if you saved the money instead.

If you find yourself shopping out of boredom, get a new hobby! A free one of course. Volunteer, start reading, go for walks, watch a film, whatever floats your boat. Pick something that distracts you so you're not tempted to spend.

It's all about finding what works for you. At the end of the day it's about self-discipline - all the good advice and will in the world means nothing unless you can find a way that works for you.

Hermia

My advice would be to first think about why you spend? I think a lot of people make the mistake of dealing with the practical side of debt, but not the emotional side. Is there a reason why you can't hold on to money? Have you been like this from young?

I find that there are a couple of things that work for me. Firstly, I always think whether I really want something. If I see something I like I either go away and come back another day. If it's something on sale that there is only one of, I walk around the shop with it. I often find that the desire for the item soon wears off. The other thing I do is think what that money could buy. If I fancy a magazine I think about the fact that that £3 could go towards something I really want.

One thing I have found useful is surrounding myself with people who are good with money and hate a lot of consumerist culture. Being with people who don't care about brand names and don't take any notice of advertising has made me examine my behaviour more.

elaine12022

Have you done a budget for yourself? I find if I don't write things down and check my account regularly it all goes to pot - checked today and I have less money than i thought :eek: so have to be (even more!) careful for the next 3 weeks. I work out how much (after bills) I've got and divide it into weeks/days so I don't spend it all in the first week! (some weeks I do spend more than others though)

How do you pay for things? One of the best bits of advice I got was to pay for things in cash as much as possible.

I've never had to budget for children, it must be really hard. I am still working at budgeting for me & a husband

Mumof4

This is how we have changed our spending habits and plan to pay all our debts off:

We bought 3 purses
1) we put our grocery shopping in it for a fortnight
2) we put our petrol money in it for a fortnight
3) we put our 'spends' in it for a fortnight

If there's anything left in any of the purses by the end of the fortnight we either buy something we need or put it in the 'spends' purse for emergencies.

We have found this a really good way of managing our money and not spending it on rubbish
We are trying not to use our debit cards at all, this way I can keep track of what's going in and out of our account. I also use a spreadsheet to list everything financial.

glimmerofhope

I agree with Hermia - if you think that you want something is it impulse or genuine. With clothes I also pick them up and walk round with them before I make a choice or leave it and sleep on it. I work in procurement so I also think also what is the real value of something before margins and tax have been added and is it really worth that - only then will I buy it.
Its hard to change but once you do everything revolves around it - there is a previous post about the use of spreadsheets and this is a really good tip for managing your money as not only does it show everything going out sometimes just sometimes it shows some money left over:j that can go towards a treat

boo80

They are some really great tips, thank you. Climbgirl; I don't get to spend money on anything like that! Last time I bought myself clothes was over a year ago, and don't waste money on coffee etc.. I think most of my spare money goes on the house. In the last year or so I've saved up for a tumble dryer (most expensive thing I've ever bought at nearly £600!!:eek:), carpets for the childrens bedrooms (they had bare floorboards), concreate for a patio and grass seed so the children could use the garden, and 2 new radiators as we only had 1 in the whole downstairs. I only bought my children and my nephew Xmas presents, and told everyone else not to buy for us as we weren't buying for them (bah humbug!) I think I do spend too much in the supermarket, but I'm tracking it all now in Eagerlearners spreadsheet, so that should help (hopefully!)

I can't deal with cash at all, it seems to go down a lot quicker than if I use a card! I think because if I don't have any cash, when my little girl asks for sweets etc I can honestly say 'sorry darling, I don't have any money today' thus saving myself some money. I think that's my problem though - when I do have cash it seems to dissappear rather quickly!

anxious_mum

I know what you mean about having cash, Boo80. If I have any in my purse it tends to disappear really quickly, usually in the direction of my 17 year old son! If I haven't got any he can't scam it, can he!!!!!

elaine12022

Hi again

Just wondered if you had a freecycle/freegle in your area, you may be able to get things through there for free (you are meant to offer things too). I got a tumble dryer a couple of years ago that I would never have been able to afford otherwise.

boo80

Hi Elaine, yes, thanks, I'm actually a freecycle moderator! It's brilliant, I've had lots for my children off there as well as a washing machine, sofa, and carpet cleaner! x x

nextyeartina

hi

i'm managing my money so much better since the beginning of january. the three best tips i can give you are:

1. keep a spending diary. i've found this so useful http://www.spendingdiary.com/
2. spreadsheets - keep track of everything
3. visit this site daily - amazing encouragement

good luck, tina x