Nothing annoys me more than people who excessively waste money then cry poor. If you want to learn how to stop spending money then I have one very simple rule for you to follow. It isn’t hard, but if you have been frivolously spending money for years then it might be a little more difficult for you.
Drum roll… My number one tip on how to stop spending money is – STOP SPENDING MONEY!
Genius isn’t it?
Seriously though, it isn’t that hard – it all comes down to your mindset. Let me show you a few classic examples of ways people waste money on things they don’t need.
Personalized Number Plates
I know someone that decided to give a personalized number plate as a birthday present, then decided that they were cool and also wanted one. So this person then went on to purchase one just for the hell of it. This particular person who I don’t really speak to all that often any more, used to always complain about having no money, but it was easy enough to go out and spend around $350 on this…
I have no problems with people who have tattoos (I even did an entire post about it here), I think that if you want to have a tattoo, fine, go get one. What I can’t stand is people who complain about have no money, but have no issues going out and spending a couple of hundred dollars on their latest tattoo. It is hardly a necessary purchase and you certainly can’t pay for groceries with ink on your arm… On top of that, there is a thriving market for tattoo removals (over 40,000 google searches a month), so obviously not everyone who gets a tattoo is all that happy with the decision later in life.
I have no major issues with new cars, but what I do have an issue with is people who finally start to get ahead financially who then go and decide to get into debt for a new car. The minute you buy a new car it loses 10% of its value. Not only that, but it depreciates for the next 10 years until it has lost about 80-90% of the original purchase price. If you are struggling to pay your rent, or complaining about not being able to pay for your kids sporting activities, then you don’t need the burden of a car loan for a new car!
The few examples above are but a few of the ways people waste money. If you are serious about stopping spending money then try to follow these simple tips:
- Create a budget and stick to it – Everyone should have a budget, if you are having money problems then you REALLY need a budget.
- Track your spending – No excuses – just do it.
- Stop impulse purchases – Sit back and think about it. Wait a few days and then if you still want it, wait some more…
- Ditch the credit card – only buy stuff when you have the money. Credit is only going to get you into trouble.
- Take pride in your savings and stick with a savings mentality.