As a nation, we just love a bargains. So much so, in fact, that according to research conducted by Share to Buy, Brits make up to nine impulsive buys a month, often just to snag a ‘good deal’. That’s £9,000 a splurged on items that we don’t even need and very rarely use, which could be spent on something much bigger and better. There must be a better way. So, with the help of Share to Buy, here are 7 IDEAL ways to spend less and boost your savings.
LEARN HOW TO BUDGET
To learn how to stop spending money, you first need to identify exactly where your money is going each month. Better documentation of your spending habits can help shine a light on those unnecessary purchases. So, keep a list of outgoings on your phone or go old school and on paper to monitor things. Mobile banking apps such as Monzo offer dedicated features which help you to categorise every purchase as soon as it’s made, with a ‘spending pot’ helping you save a little extra each month too. Certainly worth considering a switch for, we think.
STICK TO A LIST
One of the simplest money saving, impulse buy avoiding tips is to do a strict inventory of your kitchen cupboards or wardrobe, and make a shopping list prior to going to the supermarket or high street, sticking to it rigidly. This enables you to only buy what you genuinely need. What’s more, dedicated online grocery shopping sites, such as Ocado or Amazon Panty, enable you to do weekly or monthly shops with more focus and less frivolity.
PRIORITISE SPENDING
From health and beauty to takeaways and tech, there are so many directions your purse is intent on pulling you in. Don’t respond spontaneously. Instead, prioritise spending habits from highest to lowest across each major category, and see where you can cut down without losing out. Try to spend money across just one of the categories each month, and watch those savings strengthen.
CREATE A WAITING LIST
Time is a great healer. Help to reduce impulse spending and increase disposable income savings by creating a two-week waiting list for bigger purchases, checking in after a fortnight to see if you really do still need them or if there’s a better deal to be found elsewhere. A little reflection in that intervening period can often result in less haste with your purchases.
USE TECHNOLOGY
Though we’ve already mentioned mobile banking apps, there are also dedicated finance apps like Money Dashboard and Tandem which can help you stay one step ahead of your finances by tracking how much you save and spend.
These may provide an eye opening analysis. For instance, most mobile users waste around 2GB of data a month, and 71% of mobile customers are overpaying for data they don’t use, at a total cost of £800 million per year, outgoings which could be easily addressed once identified.
RECHECK ALL YOUR SUBSCRIPTIONS
Around half the country has been caught out by free trial subscriptions according to YouGov, either by forgetting to cancel or being unable to, and it cost us around £800 million in the last 12 months.
What’s more, one in eight people has continued paying for an unwanted subscription for over four months before cancelling, with 23% paying for up to three months. Blimey. So, stop wasting your disposable income on unused gym memberships, magazines, TV platform subscriptions and more. Do an audit of every group or service you belong to and cut everything you no longer engage with; this can be done efficiently on money management app Emma.
SET SHORT TERM GOALS
Alter your spending habits by creating specific goals you can work towards, like slashing your entertainment budget from £300 a month to £200, cutting your Friday night trips to the local from weekly to monthly, and reducing your takeaways to a more manageable habit. So many of these short term targets also benefit your health; a double win, we think!