Cutting back on spending is hard if you’re a spender or free-spirit. Since committing to turning my financial situation around I had to also remove barriers and old habits to help with my progress. Here are 3 things that I do:#1 Create a budget monthly – the first thing I realized when I decided to take this journey was I had to understand my incoming and outgoing. A lot changed for me financially since I started my monthly budgets. Now I know what I can and cannot afford in any month or what I can plan for months in advance. The budget is now my go to tool for planning how I manage spending and saving.
#2 Downsize my wardrobe/closet – believe it or not, the more “stuff” you have the more you want to acquire. The reason is simple – when it’s difficult to decide what to wear because there’s too much to choose from you simply go out and get something new because it’s easier to do so than spending hours trying to decide. Since downsizing my closet including clothing, shoes and accessories, I spend less time deciding what to wear. I’ll do a separate post on my 3 step process for down-sizing closets and living on minimum.
#3 Pay for purchases with cash or debit card – for frequent, everyday purchases, I keep two envelops in my purse – one envelop for gas money and another for groceries. These two are the most active on my monthly budget. The amount in each envelop is initially equal to the total of what is budgeted for the current month. If you are trying to pay off credit card debt the last thing you want to do is to continue to use credit cards to purchase everyday items like groceries and gas. It easy to rack up the balance on credit cards for frequent purchases.