How to Curb Your Spending

• Also try: How to Save Money

Introduction

• More and more, people are finding it harder to curb their spending. Whether it's the rising cost of food, housing and other essentials or the temptation to spend money on products and services that we don't need, consumers often end up spending more than they earn (which can lead to a number of financial pitfalls). In order to be more frugal and keep themselves from going into debt, it is a good idea for people to analyze their spending habits and see if there are ways that they can cut back on their expenses. Of course you don't need to eat Top Ramen every night and turn off your electricity. But with a little ingenuity (and a few helpful suggestions), there's no reason that you can't find ways to cut back on your expenses. Here are a few tips to get you started:

Make a Budget

Less Spending: Mo' Money! (Creative Commons photo by Gregg O'Connell)

• One of the best ways that you can figure out how much you're spending on various expenses is to make a budget. By writing down and figuring out how much you spend and what you spend it on, you can begin to analyze your spending habits and figuring out ways in which to cut back. Besides helping you find ways to cut back on your spending, an accurate budget can also be a great way to start a savings plan.
  • For more information and tips on how to make a budget, see Mahalo's guide to How to Make a Budget.

Assess Your Spending Habits

• Once you've completed your budget, you can begin to identify the areas in which you spend the most money. While some expenses cannot be trimmed down, others may be ripe for an overhaul.

• 1. Identify expenses that you think you might be able to trim down.
  2. Brainstorm and write down various ways that you can cut down on those expenses.
  3. Track your spending on these expenses for an extended period of time to see if you were able to lower them.

Tips for Spending Less

1. Eat Out Less: While eating out can be fun and delicious, it can also take a serious bite out of your wallet. Try eating in more often and packing yourself a lunch for eating at work or at school. Besides saving money, making your own food can often be healthier too.
   

   Save money by making your own coffee. (Creative Commons photo by Paul Downey)
2. Eliminate Expensive Coffee Drinks: If you stopped yourself from buying a $3.50 Latte every day from Starbucks, you would have about $100 a month extra to put into your savings account. Buy yourself a simple coffee maker and some ground coffee beans at the supermarket and you'll be able to get your caffeine fix without spending a fortune.
3. Buy Used or Non-Brand Name Products: While the temptation to purchase the latest product from the top manufacturer on the market can be strong, the money that you can save by buying used and non-brand name products can be substantial. Refurbished or "Like-New" products are often just as reliable as new ones and can cost significantly less.
4. Eliminate Unnecessary Expenses: No matter how frugal you think you are, there are always ways more ways that you can cut the fat. That subscription to Angler's Weekly that you never read? Those 500 cable channels that you never watch? That 5,000 minute-a-month phone plan that you never come close to reaching? All of those can go.
5. Buy Energy Efficient Light-Bulbs: Although it may cost slightly more in the short term, installing energy efficient light-bulbs throughout your house can greatly reduce your electricity bill (not to mention being better for the environment).
6. Cut Down on Driving: With the rising cost of gas, driving has become a pretty expensive luxury. While being able to drive yourself everywhere is certainly convenient, it is far from necessary. Try researching the various carpool and public transportation options that your area offers and you'll end up saving a bundle. Besides saving money, driving less can also help the environment.

Conclusion

• While cutting back on your spending is never fun, the money that you can save by cutting back on your expenses can help bring you a level of financial stability and responsibility that far outweighs any sacrifices that you may have made. And with all the money you're saving, you can start to save up for something you really want. So the next time you whip out your credit card to buy something you could do without, stop and think about whether it's worth it or not.

Resources for How to Curb Your Spending

• eHow: How to Save Money
• WikiHow: How to Save Money
• Zen Habits: How I Save Money
• MSN Money: 7 Radical Ways to Save Money
• Lending Tree: 5 Tips to Save Money Every Day
• Consumerism Commentary: 10 Easy Ways to Save Money Without Much Effort

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