Financial experts distinguish between two types of people: savers and spenders. I fall into the latter category. I have a habit of spending on things I want rather than what I need. Aware of the negative impact on my finances, I decided to track my spending for the last month to address my impulsive buying behavior. Here’s what I discovered about my unnecessary spending habits and how you can adopt the saving strategies I applied to make your money work more effectively for you.
1. Eliminating Daily Coffee Purchases
Being a coffee enthusiast, I used to spend a considerable amount on coffee from cafes every day. The cumulative cost of these visits was substantial, ranging from $2-6 each day. Over a year, this totaled to $500-1500. To change this, I challenged myself to refrain from buying coffee for a month. The transition was tough initially, but I saved these purchases for special occasions, leading to benefits like reduced caffeine consumption, increased savings, and a deeper appreciation for indulging occasionally rather than daily.
Monthly savings: $60-180
2. Reducing Dining Out Frequency
I used to dine out regularly due to convenience and a busy schedule. To cut costs, I limited dining out to special occasions for a month. This adjustment didn’t feel drastic, and I enjoyed the benefits of better health, more energy, and improved meal planning.
Monthly savings: $32-60 (lunch) and $80-300 (dinner for two)
3. Following a Shopping List
By adhering to a specific list when shopping, I avoided unnecessary purchases and saved time. Despite feeling restricted initially, this approach helped me stay within budget and avoid impulse buys.
Monthly savings: $10-100
4. Rediscovering Low-Cost Fun
I explored cost-effective ways to have fun, such as engaging in free activities like visiting museums or watching movies at home. Initially different, this shift allowed me to appreciate simple pleasures and quality time with loved ones over expensive outings.
Monthly savings: $15-200
This exercise taught me to be more creative, more present,and more appreciative of people instead of things.
5. Monitoring Phone Usage
To reduce excessive data costs, I restricted my phone usage to Wi-Fi zones. This change not only saved money but also increased my mindfulness and reduced unnecessary distractions from social media.
Monthly savings: $5-20
Key Lessons Learned
By cutting these expenses for a month, I learned valuable financial lessons and saved a significant amount. This experience reinforced the importance of making deliberate financial decisions, prioritizing savings for future goals, and enjoying occasional indulgences as treats rather than regular expenses.
