How to Stop Spending Money {Unnecessarily} | Money Mentors (2024)

How to Stop Spending Money {Unnecessarily} | Money Mentors (1)

If you are looking for advice on how to stop spending money, you’ve come to the right place. These eight tried-and-true tips will help you not spend money on the extras. There are different ways to set a budget and stick to it but one of our favourites for its simplicity and success is the Cash-Only Budget. You can choose to include “wants” in your budget but we recommend that the first time you try this you remove all wants and focus only on essential needs.

Overall, some of the takeaways and tips we’ve gained from using cash envelopes to stay on a budget made this challenge worthwhile in more ways than one. Combine a cash-only budget with any of the eight tips below or pick your favourite tip to try to stop spending money on unnecessary purchases.

1. Meal plan to save money

How to Stop Spending Money {Unnecessarily} | Money Mentors (2)

Meal planning is a great way to save money. Avoid overspending on groceries by only buying what you need for weekly meals. Use any gift cards you have on your essentials as opposed to buying things you do not need, and use all of your change from the jars around your house to pay for this weeks’ groceries. You never know how much is lying around.

2. Fun and frugal activities

How to Stop Spending Money {Unnecessarily} | Money Mentors (3)

Boredom can be one of the biggest reasons people tend to overspend or live outside of their means. To keep your mind off of spending money, try to find free or inexpensive activities within your local community. Did you know that you can now borrow passes from some libraries to visit popular attractions like museums? Visit your nearby “Little Free Library” or have a picnic in a nearby park to put things in perspective. Besides, some of the best things in life are free.

3. Educate yourself

How to Stop Spending Money {Unnecessarily} | Money Mentors (4)

When you are struggling to find best practices for saving money, it never hurts to educate yourself on new ones. Take a free online course or try reading a blog post (like this one). You never know what kind of information is out there until you try. The best part about it? There are lots of free financial education options available.

4. Cleaning saves money and sanity

How to Stop Spending Money {Unnecessarily} | Money Mentors (5)

When weekends come around, we are always looking for things to do. More often than not, these activities end up becoming costly. Cleaning your house may not sound fun, but it can be oddly enjoyable and a great way to burn off energy and stress. Borrow Marie Kondo’s book on decluttering and tidying up, or binge-watch her show and get inspired to go through your home room by room.You might actually have things to sell, in turn, making you money! Cleaning up old stuff can also make you realize how often we buy things and then forget we have them. Perspective is important.

5. Accountability buddy

How to Stop Spending Money {Unnecessarily} | Money Mentors (6)

One of the best ways to save money for goals or stick to a budget is to find a financial accountability buddy. Check-in with one another once a week, or contact them whenever you are about to make an impulse purchase. They’ll ask you the right questions and remind you why saving that money was so important to you in the first place.

6. Visualize your saving goals

How to Stop Spending Money {Unnecessarily} | Money Mentors (7)

Try creating a progress bar to make sure your savings goals stay on track. Seeing those numbers every day can be great motivation! This can also become a fun and frugal activity that you and your family can try together.

7. Price comparison

How to Stop Spending Money {Unnecessarily} | Money Mentors (8)

If you do have to buy something new that is going to be costly or affect your budget, the first thing you should do is compare price tags at various stores across your community. Are groceries cheaper elsewhere? Are there coupons or flyers? Always double-check for savings before making a large purchase.

8. Build good spending habits

How to Stop Spending Money {Unnecessarily} | Money Mentors (9)

Habits are one of the most challenging parts of life. We have to learn how to make them and, even tougher, how to break them. Ask yourself what the hardest parts of avoiding spending are for you. From there, try to adjust your days to change any bad habits or slip-ups that may have occurred previously.

How to Stop Spending Money {Unnecessarily} | Money Mentors (2024)

FAQs

How do I stop spending money on unnecessary things? ›

How to Stop Spending Money
  1. Know what you're spending money on. ...
  2. Make your budget work for you. ...
  3. Shop with a goal in mind. ...
  4. Stop spending money at restaurants. ...
  5. Resist sales. ...
  6. Swear off debt. ...
  7. Delay gratification. ...
  8. Challenge yourself to reach your new goals.
Apr 5, 2024

What is the psychology behind overspending? ›

Overspending can happen for different reasons, such as: You might spend to make yourself feel better. Some people describe this as feeling like a temporary high. If you experience symptoms like mania or hypomania, you might spend more money or make impulsive financial decisions.

What is a person who is wasteful in spending called? ›

Answer. The word closest in meaning to what you want is spendthrift. Spendthrift is a noun that means "a person who spends money in a careless or wasteful way."

How do you help someone who can't stop spending money? ›

Nine ways to tackle compulsive spending
  1. Get to know your spending triggers. ...
  2. Track your spending. ...
  3. Work out your reasons for buying something. ...
  4. Control how you use your card. ...
  5. Avoid temptation. ...
  6. Get your retail highs another way. ...
  7. Set a realistic budget. ...
  8. Get help from a friend.

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.

How to live on 2000 a month? ›

Housing and Utilities

Housing is likely your biggest expense, so downsize or relocate somewhere with a lower cost of living. Opt for a small space or rental apartment rather than homeownership. Shoot for $700 or less in rent/mortgage. Utilities should run you no more than $200 in a small space if you conserve energy.

What's it called when you hate spending money? ›

Chrometophobia is an irrational fear that can make it hard for you to spend money or pay your bills, even if you can afford to do so. Being too scared to spend money can affect your health, relationships, overall well-being, and daily life.

What is reckless spending? ›

“Reckless spending”: It's a symptom of mania or hypomania, characterized by excessive behaviors involving money. One might picture a whirlwind trip to the mall, heaps of designer clothes and maxed out credit cards. Or perhaps a large and risky investment into an uncertain business venture.

What is a person obsessed with money called? ›

Someone who is avaricious is greedy or grasping, concerned with gaining wealth. The suggestion is that an avaricious person will do anything to achieve material gain, and it is, in general, not a pleasant attribute.

What is money dysmorphia? ›

Money dysmorphia is when your perception of your financial situation doesn't represent reality. It's a distorted view of your finances. For example, you might believe you're not doing well financially even though your finances are in great shape.

Is overspending a mental disorder? ›

For some, overspending becomes buying-shopping disorder, or compulsive shopping disorder (CSD), which is characterized by repetitive, uncontrollable spending that causes serious life difficulties.

Why do I have a compulsion to spend money? ›

Many people develop an addiction as a way to cope with their emotions. This is the same for people with a shopping addiction. Compulsive shopping and spending may be a way for you to avoid or mask negative and uncomfortable feelings, such as sadness, boredom, stress and anxiety.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Arline Emard IV

Last Updated:

Views: 5569

Rating: 4.1 / 5 (52 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Arline Emard IV

Birthday: 1996-07-10

Address: 8912 Hintz Shore, West Louie, AZ 69363-0747

Phone: +13454700762376

Job: Administration Technician

Hobby: Paintball, Horseback riding, Cycling, Running, Macrame, Playing musical instruments, Soapmaking

Introduction: My name is Arline Emard IV, I am a cheerful, gorgeous, colorful, joyous, excited, super, inquisitive person who loves writing and wants to share my knowledge and understanding with you.