How To Limit "Extra" Spending
This is where most people are splurging in their lives. Entertainment, eating out, shopping, online shopping and more - does this sound familiar? You can find yourself spending hundreds by the end of the month to these things and you can’t even remember what they are.
This is where I’ve learned to cut back in my lifestyle and how you can save hundreds in a given week or month by doing so. Let’s dive into if you’re spending too much on the fun things in life - given we all deserve a little fun but let’s not get carried away every month.
What is “fun” spending?
This is probably the biggest key to saving your money and I promise this isn’t as bad as it sounds. It’s similar to my “No Buy No Spending Month” post you can read here. This is where you set boundaries for yourself. Where are you excess spending in your life? Think, shopping, online shopping, eating out, going out and more.
You don’t need to be eating out 6x/week so why don’t you set a boundary for yourself to only eat out 1x/week. I promise your continuous online shopping deliveries aren’t going to make you happier in life, they’re giving you short-term satisfaction.
How to set limits on “fun” spending?
Look at your monthly or weekly budget and see how much on average you’re spending. Everyone’s amounts will be different based on your lifestyle, income, savings, debt, preference and what you enjoy and prioritize.
My Limits:
Eating Out - $100/Month or 1x/Week
Clothes - 1 item/per month and under $100
Workout Classes/Gym Memberships/etc. - Under $60/Month
Home Decor - $0
Amazon Purchases - Only books or needed hygiene items - $40/month
Travel - Under $200/Month - This is a priority and spend that I enjoy and save to be able to do!
Who should do it?
I may be biased but I think this is a plan that everyone can benefit from. Whether you give it a try for a week or month it’s very eye opening to see where excess spending or all your money is going. When I first began I saw a very large increase in online purchases or home decor, both things I don’t necessarily need.
For someone who is enjoying life and spending as they please this could be something for you!
Why should I do it?
You can save hundreds or even thousands a month. Not kidding. In our lives we are excess spending to where we don’t even realize it. You may have a Hulu, Netflix and Amazon membership, all doing the same thing but totaling to $30/month. This is $30 that could be in your savings account and grow to $50.
If you feel like you have excess stuff, material items, bills or credit card charges then this is a big enough reason alone for you to try this.
Does it work?
YES! This is the biggest way I can save in my monthly budget. It’s where excess money was going every month and I didn’t even realize it.
Tip: All Extra Cash Goes to Savings
This is a big one! After you limit your “fun” spending I can guarantee you’ll begin finding extra money in your account at the end of the month. Simply put, put every extra dollar you’re not spending anymore into your savings account. When you become budgeting, track your expenses and put some boundaries to yourself you should see that you may have $100 to multiple thousands extra in your account at the end of the month. At the end of the month and all your bills, rent, etc. has been paid but all of your extra cash into your savings and watch it grow!
Tip: I do have a friend who deposits whatever is left in her account on the last day of the month into her savings. She does this because she’s paid the 1st and knows another check is coming. So if she has $40 or $400 left on the last day of the month a majority if not all is going into her savings. (Personally I would leave a safe amount in your account to feel comfortable such as $50 or $100).