For most people, at least a portion of their hard-earned money gets spent on a daily basis. While you have to pay your bills and make other necessary payments or purchases, there is probably a decent amount of your money that you spend on discretionary items throughout your day. The thing with these small and seemingly insignificant purchases is that they truly add up in the long run. While spending $3.00 on a coffee each morning might not seem like a big expense, that ends up being over $1,000 a year you’re spending on just this one daily item.
While many small daily purchases are harmless, getting into a habit of spending money each and every day could turn into an addiction that you may need to seek help with. So to keep this from happening and to also help you maintain better control over your finances, here are three ways you can begin spending less money throughout your day.
Track Your Money With Mobile Apps
The simple act of seeing exactly where your money is being spent can help you with spending less money. Once you see just how much you’re spending on that $3.00 coffee every morning and how that money adds up, you may be less inclined to spend that much in the future.
Kimberly Palmer, a contributor to U.S. News and World Report, shares that some of the best apps for keeping track of your finances are Moven, Prism and Level Money. These apps make it easy for you to see where your money is being spent and will help you create a budget in order to allow you more control over your money in the future.
Differentiate Between Wants and Needs
One of the biggest reasons for overspending is not being able to differentiate between wants and needs. While many of the items you want on a daily basis may seem like a need, the truth is that you could very well survive without them. Basic human needs consist of things like food, shelter, clothing, transportation and more.
To spend less money, Erik Folgate, a contributor to Money Crashers, states that you should begin a habit of building your wealth and waiting to buy something you want until you can truly afford it. While you may have the $3.00 you need for coffee in your pocket, you now have $3.00 less to spend on the actual necessities like your utilities or gas.
A lack of planning ahead is likely the reason you spend a lot of the money that you do on a daily basis. You forgot to pack a lunch or your overslept and now you have to make a quick purchase decision that actually costs you more than if you’d planned ahead. To help with this, Trent Hamm, a contributor to TheSimpleDollar.com, explains that by planning ahead, especially when it comes to food, you can save yourself a ton of money in the long run. By using coupons when you grocery shop and sticking to a list, you can eliminate the need to spend excess money throughout the week or on items you don’t truly need.
If you’re able to make the goal of spending less of your money on small items throughout the week, you will be able to see just how much more financially secure you can be. Use the tips mentioned above to help get you there today.