7 Habits That Will Help You Stop Wasting Money

If there’s one thing you can do to quickly simplify your life, it’s to stop wasting money!!

You see unnecessary spending complicates life at a rapid pace.  In fact, according to a recent article from CBS News, finances are the number one cause of stress. So when our finances are out of control everything feels out of control.

On the other hand, when we minimize the money we spend, we actually simplify our lives.  We have more resources for what matters most to us.

It’s important to realize that everything you spend money on is a choice.  You are trading your time and resources for the purchase you are making.  When you stop wasting money on unnecessary spending, suddenly, you have the means to spend, both time and money, on the things you truly enjoy.

Minimizing your spending habits gives you greater opportunities for things like, vacations, time with family or even being debt-free.

If you are a spender by nature and desire to stop wasting money and enjoy a simpler life, it starts with changing your spending habits.  Now, there are no quick fixes to getting rid of habits that have been formed over a lifetime.  Learning to control your spending habits takes time and discipline.

However, with these practical steps, you can quickly stop wasting money and begin to take ownership of your spending.  When you take control of your spending, you will have more time and resources to enjoy what matters most to you! This is what simplicity is all about.

Ready to get started?  Here are the seven habits that will help you stop wasting money and simplify your life.

This post may contain affiliate links, which means I may receive a small commission if you purchase something mentioned in this post. See more details here.

1. Reward Yourself

Yes, this is a strange way to start off a list of habits that will help to stop wasting money, but I promise you it works. Having something to look forward to helps us stick to a habit.  In Charles Duhigg’s best–selling book, “The Power of Habit”, he identifies “reward” as an essential element of any habit.

Basically, every time you resist a cue to spend money such as a trip to the mall with a routine stop at your favorite store just to look.  Take that money you didn’t spend and reward yourself by placing it in a piggy bank or separate savings account.  Continue to save that money, with the purpose of saving for something really important to you.

If you are trying to pay down debt, when you reach a certain savings amount apply that to your debt. Or if taking a nice family vacation is what matters most, save that money until you have enough for that special vacation.

Whatever you are saving for, you will be motivated to continue to save as you watch that savings grow.  As your savings grow, you will get closer to being able to have what is really important to you.

2. Stop Wasting Money By Removing Temptation

Learning to change bad spending habits, is no different than breaking any other habit. If someone is on a diet, they know that they need to stay away from bakeries and ice cream shops.  If you’re trying to curtail your drinking you’re not gonna hang out at the local bar and expect not to drink.

It is no different if you’re a spender. You need to stay out of the stores, plain and simple. Every time you walk into a store there’s going to be a temptation to spend money.  The best way to stop wasting money is to avoid unnecessary trips to places like Target or the mall period.

The same can be true of online browsing or mail-order catalogs.  It’s quite easy to convince ourselves that we really need something when we are browsing a catalog or the internet. Remove the temptation and unsubscribe from all catalogs.  Also, stop following that favorite clothing or home furnishing store on social media.

When you do have to shop, make a list and stick to it.

3. Wait 24 Hours Before You Make a Purchase

If you do need to go to the store, and you find an item that you hadn’t previously planned to purchase, wait 24 hours before you buy the item.  By waiting to make that purchase, you are instantly stopping impulse buys. Force yourself to go home and really think about the item.  If after 24 hours you’re still thinking about it, then you can go back and make that purchase.

4. Ask Questions Before You Buy

Habit # 3 can be tricky if you find yourself at the store on the last day of a special sale or find a great clearance item. When this happens you can’t always wait 24 hours before you have to purchase the item.  In this case, learn to ask your self some good questions before you make that purchase.

• Is this item really worth purchasing or am I just purchasing this because it is on sale?
• Would I buy this if it were not on sale?
• Do I need this item or is it an unnecessary purchase?
• Is this a quality item?
• Can I afford this?
• What am I sacrificing in exchange for this purchase?

You can get more details behind these questions in this post on How to Shop Like a Minimalist.

For now, know that if you make a purchase just because an item is on sale, you’re not really saving.  Spending is not saving. If you wouldn’t buy the item if it were not on sale, you shouldn’t buy it just because it is on sale.

5. Develop a Cash Only Policy

Let’s be real when you shop with a credit card you’re not actually paying for the item.  What you are doing is borrowing money.

It’s so easy to hand over a credit card.  But it’s not nearly as easy to part with cash.  The reason is that when you pay with cash, you physically see the cash dwindling down.  This will make you far more selective in your purchases.

After all when the cash is gone, so is your purchasing power.  By leaving your credit cards at home, you will stop wasting money on things you don’t need.

6. One in One out Rule

I personally believe this is one of the best habits I ever developed to help me stop wasting money.

If you’re not familiar with the one on one out rule, it’s simple.  For every new purchase, you must get rid of something you already own in that category. In other words, when you bring something in, something must go out.

Here’s an example:  You purchase this adorable couch pillow that matches your curtains perfectly.  Now when you get home, you need to get rid of one of the pillows or other decorative items you already own.

If you know that you have to get rid of an item you already own in order to purchase a new item, you are far more likely to reconsider your purchase.

Plus, there is an added benefit, this rule will help you keep your home organized and clutter free!

7. Love What You Own

You work hard, so why are you wasting your money on things you don’t love?

The truth is you deserve to love everything that you own.  For this reason, stop wasting money by buying things unless you really love it.  If the item is not 100% making you love it, wait until you find something that you do really love.

When you practice these simple and practical solutions to help you stop wasting money, you’ll be amazed at both the time and money you now have for what matters most!  So take control of your spending habits and live the life you’ve always wanted!!