How to Keep Your Personal Spending Under Control?

What will happen if you spend $3,000 per month while your salary is $2,500? The extravagance habits make our monthly income fly away quickly. Not only do we save nothing for the future, but also we will be left with debt. Unfortunately, spending above income is very common, especially among the youth. The main reason is their lack of money management skills and spending extravagantly without calculating. So, how to keep your personal spending under control? Check out these following 9 tips to know the answer.

How to Keep Your Personal Spending Under Control?

Think carefully before spending

Do you need that item? What are its benefits, and where to put it after buying? You may want to purchase many items from the first sight, but think carefully before making a decision, and make sure that buying it will not burn you out. You should not buy what you want, buy what you need only.

Note down your spending

Write your spending down to take better control of it based on your monthly expenses. What are fixed expenditures, and how much are they? What are derived costs, and how much should you spend on them per month? Make a clear note to make sure that you do not overspend on something unnecessary.

You can also use an online app to manage your money and financial situation.

Rent what you can rent, buy what you can afford

You can temporarily rent what you rarely use, such as sports equipment, magazines, repairing tools, etc. Renting or borrowing will help you to save money and reduce the cost for maintenance or repairs if you do not use it regularly.

However, do not hire everything. Buy what you need in the long run as the renting cost is equivalent to the buying one if you have to use it many times.

Limit credit card usage

If you don’t think that you can curb your shopping temptation, you should conceal or even lock your credit card. Many people use the credit card as a tool to help them spend unlimitedly without considering the interest rate. Undoubtedly, we need the credit card’s overdraft function sometimes; however, to avoid extravagant spending, you should refrain from using it.

Think of family responsibilities

Family is important to all of us. Your family members and relatives can have financial troubles at any time. Therefore, when you are going to pay for something useless, think of your responsibilities, especially your children. The excessive amount of money you spend on it may be used for your children’s tuition fee, medical care services, etc. Hence, think of the consequence it may cause to your family before spending!

Save as soon as possible

Make saving your top priority. Even if your monthly income is not high, try to save at least 10% of your salary. The sooner you save; the more money you have when getting older. Moreover, if you invest wisely, your saving money will be increased considerably.

Change your mind on finance and money

Life pressure makes people feel stressed when thinking about money. You may feel worried and afraid of the thought that you will not have enough money for your essentials. Though, if you want to change the situation, change your mind first. The author of the book “The Graduate’s Guide to Money” once advised people to clarify their thought of money, how to earn, and how to spend it if they want to control their private spending well.

Prioritize spending

Depending on the circumstances, you can decide which financial issues should be your priority. If you travel and go on business trips regularly, you don’t need to spend too much money on buying expensive furniture, do you?

Invest wisely

Don’t put all your eggs in one basket. Be wise when you want to invest in something, and diversify your investment to minimize risks. If possible, you can invest in different areas to generate profits and support your long-term spending.

There is the fact that the richer you are, the better your money management skills. It is the key factor in deciding your success and prosperity. Therefore, if you want to be rich and live a comfortable life after retiring, start learning how to keep your personal spending under control, and practice these tips from now on.


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