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5 Tips to Overcome Bad Spending Habits

Do you think you have bad spending habits? Yes? Don’t worry. We all have some bad spending habits, which are not good for our financial situation. However, we can overcome them.

A locked wallet

Here are 5 tips, which you can follow to reduce your bad spending habits.

  1. Change the way you spend your money – The way you spend your money makes a lot of difference. For example, if you use your credit cards to shop, it’s difficult to put a hard stop. However, it becomes easier to restrict yourself if you buy with cash. Another way of approach is to use envelope budgeting. It requires no mention that you need to plan a budget to manage your finances effectively; while budgeting, divide your money, put them into separate envelopes and mark them. Make it a point to sustain within the amount allocated for each item.
  2. Track where you are spending your dollars– This is important to change your bad spending habits. If you don’t analyze where you’re spending more, you won’t be able to manage your finances efficiently. So, get a receipt of every item you’re purchasing and maintain a list of date, amount, and description; at the end of the month, you can analyze where you had spent more.
  3. Know what triggers you to spend – In relation to the last tip, analyze what makes you spend. For example, if it has become your habit to buy a Starbucks coffee everyday around 4 pm, write down how you feel when you sip your coffee; the reason may be, you want to relax, you don’t have other work to do, or you want to take a walk to bring your coffee. So, finding out the reason can help you avoid spending on that item. It may happen, spending that time in the gym will help you avoid buying coffee from Starbucks.
  4. Find out your weaknesses – You also need to find out your weaknesses. For example, do you often end up buying something when you visit a mall? If yes, then avoid visiting malls without a list of what you need to purchase. If you have to meet a friend, you can meet him/her at a park or call him/her at your home. It can help you avoid your bad spending habit. Do not hesitate to disclose this to your friend; he/she will surely help you in overcoming your overspending nature.
  5. Find out alternate activities – One of the best ways to reduce impulse buying is to engage yourself in something which you like to do. For example, if you go to shopping when you feel stressed out, then look for activities that can help you ease out stress. For example, you can go for swimming, join a gym or start a hobby that makes you feel good.

Start rewarding yourself to overcome your bad spending habits. How can you reward yourself? If you’ve been able to deposit the required amount in the emergency fund along with managing your other expenses within your budget, and have been able to avoid committing money mistakes, then next month, allocate an amount which you’d like to spend as you want to. It will motivate you to overcome your bad spending habits and spend as you have planned.

Another thing – It is not easy to change your habits overnight. So, stay motivated and never give up. You will be able to change your bad spending habits within few months along with building a secure financial future.


Good Nelly
, primarily a financial writer, has started a blog of her own My Way of Viewing a few months back. Here she pens down her thoughts and tips on leading a better lifestyle. She has written for several websites on personal financial issues and other aspects of lifestyle. 

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