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Glen Starr, CFP®

Quit Saying “I’m Broke”: How to Stop Unnecessary Spending

Saving money can be hard. It often feels like your paycheck goes in your bank account and a minute later it’s gone. Between bills and unexpected life moments, it always seems you’re left saying “I’m broke.” 

 Let’s fix that.  

  1. Use cash, not a card. Using a credit or debit card can be a convenient alternative to paying with cash. However, it also makes it easier to make impulse purchases. Strive to use cash where you can to help limit purchases, as it ensures you’re only spending what you have on hand.
  2. Limit your credit card. Often, we have more than one credit card. Try to limit how many credit cards you have down to one or two, if possible. It will help control your spending and be one less bill to pay each month. Also be aware of what you are putting on the credit card – only put on it what you can pay off! 
  3. Cancel subscriptions and memberships you don’t need. Consider cutting back on everything from the gym membership you barely use to the several subscription bundles you pay for monthly to dwindle down unnecessary expenses.
  4. Eat at home. Going to restaurants and stopping for coffee is fun, but those shouldn’t be daily occurrences. Plan your meals ahead of time and stick to your grocery list!
  5. Walk when you can. Try not to use your car if you can walk to your destination. You will save money by not using gas as well as only purchasing what you can carry home.  
  6. Set savings goals. And stick to it. Let friends and family know you’re trying to save and download a budgeting app to track your progress. Put bonuses in your savings account. Collect receipts and put them in market research apps such as Coin Out and Receipt Hog.  
  7. Borrow, don’t buy. If your neighbor has a snowblower, ask to use it if you need to. Instead of going out to purchase a big item that will only take up space or is a seasonal need, learn to share. Offer to share something you have that they don’t in return.  
  8. Clean out your closet. Instead of throwing out what you don’t need, try selling your clothes and other items on websites like Poshmark and ThredUp. It‘s another source of income, and you can also purchase clothes for a less expensive price. 
  9. Retail therapy. When you feel anxious or worried, don’t run to the mall and buy products you don’t need. You won’t feel better, you’ll just be left with less money and more things taking up space in your home. 
  10. Look for bargains. If you really want a new pair of shoes or a new tech accessory, be patient. Sign up for reward programs from brands you shop from so you’re in the know about deals and receive coupons when they’re available.
  11. Rewards apps. Download the app for the stores and restaurants you frequent. The rewards will add up quickly and allow you to reap the benefits of free items and other perks that put money in your pocket.  
  12. Avoid social media promotions. It’s easy to scroll through Instagram and see all the wonderful products being promoted. But falling victim to these targeted ads can quickly become problematic for your wallet. 

This article was prepared by ReminderMedia.

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