NT $$$ Gurus, Help Me To Stop Spending! Vol. Money-Saving Tactics

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Sup all,
I'm sure some of you have this problem of spending(luxuries, not necessities) too much month to month. 

I work a 9-5 M-F.

I live with my folks (I give them a cut of each of my paychecks).

I pay car payments, insurance, cellphone...etc.

I also take a sum of my paycheck and stash it into my savings 

BUT I always find myself having a monthly balance on my credit cards...and as I prepare myself to move out and begin living on my own, I'm sure this isn't a good habit to have.

What habits have you guys/gals implemented to curb your spending?
 
Cut back on fast food.Make your own lunch and take it to work with you.It is healthier and you save money. Hold off on some of your purchases. Wait till the next week or so and see if you still want it. If so get it but if not you just saved yourself some money.Rinse and repeat
 
Set a goal for yourself for a major expense (car, house etc.) and you'll see how quick you'll cut back and notice how some luxuries that were a must for you before are non existent now. I was the type that spent my checks on all the luxuries on stuff I dont need. Now I set a limit after my bill expenses on what I will put in my savings and if I have a couple scraps after that I will treat myself to something small like a tee or something like that. Half the time I just end up saving those scraps anyway.
Also pay off your CC's in your sock drawer or somewhere safe at home till they are paid off. Only use them for necessary emergencies. Spend what you have in physical cash or bank account. By leaving your CC's somewhere safe at home you will kill all temptation of using money you dont have on unnecessary things.
 
Originally Posted by RufioRufioRufio

lol shady stop lurking the dressing better thread and fall/winter coat thread. i see you famb

Real talk, all of my splurges are on clothing...
I really need to stop visiting that thread haha.
 
1. Keep a monthly money plan (budget).  Without a plan, you won't have any goals for your money
2. Cut up the credit cards.  You already identified it as a problem.
3. Use cash.  Sounds old school but since I started paying with cash I have spent a LOT less and I was already pretty frugal anyways.
4. Sit on any purchases for at least 2-3 days before making it.  In most cases you will change your mind between the impulse and the decision deadline.
5. Keep your savings account in an online bank and give it a name.  I label mine for the goal that money is for (i.e. car, laptop, etc.) and it helps keep me focused on what that money is supposed to be used for.
 
Originally Posted by crcballer55

1. Keep a monthly money plan (budget).  Without a plan, you won't have any goals for your money
2. Cut up the credit cards.  You already identified it as a problem.
3. Use cash.  Sounds old school but since I started paying with cash I have spent a LOT less and I was already pretty frugal anyways.
4. Sit on any purchases for at least 2-3 days before making it.  In most cases you will change your mind between the impulse and the decision deadline.
5. Keep your savings account in an online bank and give it a name.  I label mine for the goal that money is for (i.e. car, laptop, etc.) and it helps keep me focused on what that money is supposed to be used for.


great advice
pimp.gif
 
When you suggest paying with cash...do you just withdraw a certain amount at the beginning of the month according to your MONEY PLAN and just bring a certain amount with you anytime you go out?
 
Originally Posted by ShadyKay NT

When you suggest paying with cash...do you just withdraw a certain amount at the beginning of the month according to your MONEY PLAN and just bring a certain amount with you anytime you go out?
Yes, only withdraw the money you're going to spend that month at the beginning of the month.  Keep your money separated by categories in separate envelopes.  It's might not be as cool than swiping, but being broke is even less cool.

If you want more details I highly suggest you read The Total Money Makeover.  It's probably one of the best personal finance books you can read on basic strategies to getting out of debt, spending less, and building wealth.
 
Two very small things will help, and have helped me:

1) As mentioned, avoid eating out as often, especially during the week for lunch - this adds up quickly. Also, dont pay for things you can get for free. This sounds stupid and obvious, but things like bottled water are costs you have no reason to incur

2) If you have a smartphone, download a free finance app like Piggie (iPhone) for example and everytime you spend money, record it. seeing what you spend, as soon as you spend it, and having a summary available at all times, will really wake you up as to how to fix your spending habits and how to make changes in your lifestyle (and also allow you to see what you spend too much on)
 
THE BIGGEST INSIGHT MY MENTOR GAVE ME WAS THAT I SHOULD STOP SPENDING OR SEVERELY CUT BACK ON THINGS THAT DON'T APPRECIATE IN VALUE.

FOR EXAMPLE YOU SAID YOU SPEND A LOT OF MONEY ON CLOTHES. YOU COULD END UP SPENDING $100 ON A JACKET AND WEAR IT A FEW TIMES THEN THE STYLE CHANGES. YOU JUST LOST OUT ON $100. NOT TO MENTION THE RESALE VALUE OF CLOTHES IS ALMOST NON-EXISTANT. I JUST STICK TO THE CLASSIC BASICS.

DO THIS TEST NEXT TIME YOU WANT TO BUY SOMETHING: TAKE THE CASH OUT FOR THE ITEM, SAY IT COST $100, AND HOLD THE ITEM SIDE BY SIDE TO THE CASH. THINK ABOUT ALL YOU HAD TO DO OR WORK TO GET THAT $100 AND THEN LOOK AT THE ITEM AGAIN. SURE MAKES THE ITEM NOT WORTH IT HUH? THIS TACTIC HAS SAVED COUNTLESS TIMES FROM BUYING THINGS I DON'T NEED.

ALSO, FINANCING A NEW CAR IS ONE OF THE WORST FINANCIAL INVESTMENTS A PERSON CAN MAKE. LITERALLY. IF I DON'T GOT THE CASH I DON'T NEED. PLAIN AND SIMPLE. I WILL NEVER FINANCE ANYTHING ELSE AGAIN IN MY LIFETIME BESIDES MY HOUSE.

AFTER PAYING YOUR BILLS, IMMEDIATELY TRANSFER A SET AMOUNT INTO SAVINGS THAT IS UNTOUCHABLE AND GIVE YOURSELF A SET AMOUNT TO LIVE OFF OF UNTIL YOUR NEXT CHECK. YOU WILL BE SURPRISED ABOUT HOW MUCH YOU CAN LIVE OFF OF BETWEEN CHECKS IF YOU REALLY TRY. AFTER MY BILLS ARE PAID I PUT AROUND $800-$900 IN MY SAVINGS AND GIVE MYSELF $300 TO LIVE OFF OF UNTIL MY NEXT CHECK IN 2 WEEKS THEN REPEAT. WHEN I FIRST STARTED DOING THIS, I THOUGHT IT WOULD BE IMPOSSIBLE, NOW I CAN MAKE IT TO MY NEXT CHECK OFF $200 ALONE. THIS IS WITH GROCERIES, GAS, ETC. IN BETWEEN THAT TIME AND I CAN STILL GO OUT ONCE OR TWICE A WEEK WITH MY GIRL.

SOME MIGHT CALL IT BEING CHEAP BUT I HAVEN'T RAN INTO A GIRL YET WHO DOESN'T RESPECT A MAN WITH HIS FINANCIAL SITUATION IN CHECK.

JUST SOME TIPS FOR THOUGHT.
 
Originally Posted by crcballer55

1. Keep a monthly money plan (budget).  Without a plan, you won't have any goals for your money
2. Cut up the credit cards.  You already identified it as a problem.
3. Use cash.  Sounds old school but since I started paying with cash I have spent a LOT less and I was already pretty frugal anyways.
Came in here to say this....
I've started doing these 3 things in my own life and seen a HUGE difference.

Especially #3. It's so easy to swipe a card because you never SEE the money change hands. But when you actually have

to PHYSICALLY hand over the money to the cashier, it's a lot harder to see it go and you begin to re-think purchases and ask yourself

"do i really need this?"... this has helped me a lot.
 
i think the biggest thing i see with 9-5 working people is lunch.  lunch is real expensive.
if you eat out mon-friday for lunch you spend about 10 a day:
10$*5days= 50$
50*4weeks= $200 that could of been saved.

Getting stuff from costco and using that for lunch can save lot and like someone mentioned earlier, it is healthier.........
 
Originally Posted by ShadyKay NT

Originally Posted by RufioRufioRufio

lol shady stop lurking the dressing better thread and fall/winter coat thread. i see you famb

Real talk, all of my splurges are on clothing...
I really need to stop visiting that thread haha.
In the same boat.  My money used to go to bar tabs now its going to clothing.

I've been using OT pay to purchase the "wants" in my life.  I like nice stuff just as much the other NTer but I tend to curb my luxury expenses by selling my older stuff on ebay and setting a bill aside from every paycheck for those items.  My paypal debit card is linked to my banking account so I use like a bank card and receive 1% cashback on my everyday purchases.  It doesn't seem like a lot in the short run but it adds up in the long run.
 
if you spend a lot on clothes, you can also sell your unwanted stuff on ebay.........
 
Thanks for the advice all.
Something to note, I regularly set aside a chunk of my paycheck every time I get paid...I also put $$$ into my 401k and Roth IRA. So I am saving...

But every time I spend (albeit money that I have set aside for personal spending) I STILL feel guilty.  Should I set aside MORE for savings if that's the case?
 
i save 15% of every check i get no matter where it comes from. i honestly thinks i need to drop it to 10%
 
Originally Posted by thenewjs23

i save 15% of every check i get no matter where it comes from. i honestly thinks i need to drop it to 10%
10 is the minimum according to "The Richest Man In Babylon" (Good read by the way) Good post Memph. I live by that same philosophy, If I can't pay for it with cash I don't need it. 
 
Originally Posted by memphissfinest


DO THIS TEST NEXT TIME YOU WANT TO BUY SOMETHING: TAKE THE CASH OUT FOR THE ITEM, SAY IT COST $100, AND HOLD THE ITEM SIDE BY SIDE TO THE CASH. THINK ABOUT ALL YOU HAD TO DO OR WORK TO GET THAT $100 AND THEN LOOK AT THE ITEM AGAIN. SURE MAKES THE ITEM NOT WORTH IT HUH? THIS TACTIC HAS SAVED COUNTLESS TIMES FROM BUYING THINGS I DON'T NEED.

I feel you on this one. When you really think about the hours put in to get that money its like 
eek.gif
. I have been cutting back as of recently too. I hate when I get to a certain point money wise and see it fall under that amount. Even though I don't need that money yet, I have to have it as a comfort. 
 
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