1. Get to know your spending triggers
Ask yourself what’s going on when you spend money on things you don’t really need. A ‘spending trigger’ is a feeling or situation that makes it easy for you to break your spending rules. For some people, it can be feeling stressed or bored, while others want to buy things their friends have got. Make a list to help you understand what triggers your impulse to spend.
Small purchases add up to big costs
It’s easy to dismiss spending on the small stuff, especially with contactless payments. Adding up the purchases you don’t usually worry about can reveal how they take a big bite out of your budget. Check your bank account transactions at the end of a month and add up all your spending on stuff like drinks, snacks and taxis. Then see how much you could save with cheaper alternatives, like packed lunches and public transport.
Beware of impulse purchases
Make a checklist to help you work out whether something you want is just an impulse buy. Why do you need it? Could you get a cheaper alternative if you wait or go elsewhere? How much use will you get out of it? Have you bought things like this before and regretted it later? These simple questions can help you keep your cool when faced with the temptation to splurge.