7 Ways to Cut Down on Unnecessary Spending

Last updated: March 14, 2017

Unnecessary spending is one of the biggest contributing factors to bad credit and financial crisis. If you are seeking to better your credit score and become more financially capable, there are some things that you can do to cut down that unnecessary spending.

1. Make Shopping Lists

Impulse purchases and not tracking the cost of purchases while shopping can lead to unnecessary spending. To avoid this, make shopping lists before you leave the house and make sure to stick to them!

2. Trim the Fat

Look over your regular monthly expenses and identify where you can trim the fat. Many of our monthly expenses turn out to be “wants” rather than “needs” and can easily be cut from the budget. For example, many of us pay for larger cable packages or internet data packages than we need.

3. Consolidate Shopping Trips

Shopping once a week for all the items that you need for the week will save on unnecessary spending. When you aren’t going to the grocery store every day you will find that you are spending less money both on transportation and saving money by purchasing larger quantities of ingredients at one time.

4. Shop with Coupons, Circulars, and Sales

Cut down on spending in all areas by shopping with coupons, shopping from circulars, and making note of store sales. So many people overspend on items simply because they are too lazy to clip a coupon or lookup what stores are offering the best sales for the week. Take an hour or two every Sunday to clip coupons from the local paper, scan through weekly sales offers, and plan shopping trips using circulars.

5. Analyze Your Spending Habits

Take a moment to look over your spending for the week and identify your spending habits. This will help you to identify where you are overspending the most and where you can cut back. For example, you may think that you only stop to grab a cup of coffee twice a week when in actuality you are stopping four times a week for that $4 cup of coffee! The only way that you can change these habits is to identify them first.

6. Know Your Budget

Being mindful of your budget will help you to identify how much money you can spend per week without overstretching your finances. If you always know how much you have available as “spending money” you will be less tempted to order takeout or splurge at the mall when you don’t have the money to spend.

7. Manage Your Recreational Time

If you have a group of friends who like to spend more money than they make or who make money that allows for excessive spending, manage your recreational time so that you spend less time with this group of friends. It can be easy to fall in to overspending when you are in bad company or when you are trying to “keep up with the Jones’s”.