“Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need,” said Tyler Durden in one of my favorite movies Fight Club. This is not far from the truth.
With budgets of billions of dollars spend annually, advertisers try to convince us that if we buy their products we will be more successful, attract the opposite sex and be happier.
With so big budgets and so carefully crafted and targeted ads backed up by polls, research, psychologists, it’s not difficult to understand why we turned to emotional spenders.
Emotional spending is when you buy something you don’t need and in many cases you don’t even want but eventually you buy it under the pressure of emotions like unhappiness, boredom, and under appreciation just to mention a few.
While it is not realistic to completely cut emotional spending we have gathered some tips below that will help you considerably decrease it.
Ways to Avoid Impulse Purchases and Emotional Spending
1. Decrease your exposure to advertisement
The ad men and women know how to get us spend. They are experts at understanding behavior and psychology. When you see advertisements frequently, the odds are stacked against you. Even when you know exactly what is going on, you will still have the impulse to spend.
This impulse is strong and can hurt you in many ways you might not think about. Even if you fight off the urge to spend, you may hurt yourself in other ways. Making tough decisions will always give a little depletion of our willpower reserves. This is called ego depletion. So you may make the tough call to “not buy” but later on you may not be able to resist eating that big slice of cake.
The best way to avoid emotional buying is to be less aware of what’s available. If you could stick your head in the sand like an ostrich and never see another ad, you would be a lot better for it. Unfortunately, you can’t completely cut yourself off from advertisements. All you can do is significantly reduce your exposure to ads.
Online: Use an adblock software that will prevent advertisements from popping up when you visit your favorite blogs. Unsubscribe from the products catalogs that are flooding your email with new products and offers.
Offline: When you are recording a show it is really easy to skip advertising. When you are listening to radio better switch to a public station or listen to a CD or mp3 you have recorder. Watching TV on NETFLIX, Hulu and other similar services are also ways to never see ads.
2. Don’t make impulse buys
When you are at a store or an e-shop online and you find yourself ready to buy something that you wasn’t planning to buy before just don’t buy it.
Make a rule that every time you find yourself in this situation you will get 24 hours to think if you really need what you are about to buy. You will see that the majority of the times when you leave the website or store you will forget about that item.
Now if after 24 hours you are still thinking about it but you know that you can’t really afford it, just wait for a week. Make a bit of market research, and try to find a better time to buy it as a reward to yourself (if you close a deal to your work etc.).
3. Be accountable
Reach out your friends and family and let them know that you are trying to spend less and tell them to give you a hard time, when they see you buying stuff you really don’t need.
You can also make a list with your financial priorities and post it in a visible place where you can see it every day, like your refrigerator.
If you want to take this a step further, write these priorities to a post it and put it on your credit card so you can see them every time you are about to buy something unnecessary.
4. Find other activities
If you are find yourself shopping as a form of entertainment or distraction, identify what you are your feelings when you have an urge of going shopping and try to find an alternative activity that will help you deal with these emotions.
If you are going shopping when you feel stressed try some exercising to blow some steam. Rather than going shopping, why not go for a nice long walk. Walking helps you to burn calories and feel better, rather than give you a quick endorphin high followed by the bad feeling of mounting debt.
If physical activity isn’t the thing for you, why not simply meeting up with some friends and socializing, rather than going out and spending.
Hi! My name is Benjamin Warren and I am the owner and webmaster of MightyAdvice.com. Running a site that has a lot of product reviews has given me a big experience when it comes to shopping. So I decided to write this article to help you become more efficient and save money when you do so.
Some are made spontaneously… while others require a great deal of thought.
Common decisions we all face include:
Which college to attend, if at all
Which job to take
Which person to marry
Whether or not to have children
Where to live
Which car to buy
How to pay off our debt
How to pay off our debt.
We’ve all been there.
Debt, by definition, is “the state of owing money”.
Even if you have a credit card that you pay in full every month, you are in debt for that month.
Mortgages are debt.
Car payments are debt.
Debt is debt.
Maybe you’re in good standing, but it’s still there.
We can’t escape it… well, unless you pay cash upfront for everything.
And if you do that… well, then you have my congratulations and permission to stop reading now!
Seriously, stop.
But if you’re like most of us, debt is a part of your life.
And how you go about paying it off will dictate your lifestyle.
Enter “Debt Snowball vs. Debt Avalanche”.
In this article, I will:
Guide you through getting started
Explain the difference between these repayment methods
Provide examples of how to apply them to your financial situation
Ultimately help you decide which method is best for you
Debt Repayment: Where do I begin?
Before we get into the specifics of debt snowball vs. debt avalanche… you will need to review the total amount of monthly income you have available to pay down any debts.
This amount should exclude any money that you’ve allocated for living expenses, such as:
Mortgage
Food
Childcare
School
Transportation (gas, bus or train fair, etc…)
Now…
Once all of your living expenses are taken care of, how much do you have left each month?
This amount is what you should be drawing from to pay down your debt…
I like to call it the “free cash” figure.
Here’s an example:
7500.00
total net household monthly income
– 5300.00
total monthly living expenses
2200.00
your free cash figure
Ok.
Now that we’ve established your debt repayment allowance, we can get down to business.
What is Debt Snowball?
Debt Snowball is a term coined by Dave Ramsey, the man behind the cash envelope budgeting system.
It is a debt repayment strategy.
With this method, you choose to pay off your accounts starting with the smallest balances first… while paying the minimum payment on larger debts.
Once the smallest debt is paid in full, you would proceed to the next slightly larger “small debt” above that…
And so on and so forth, gradually proceeding to the larger debts last.
Payments usually apply to minimum payments due, except for the first (smallest) debt.
The interest rate is not a factor.
Sound confusing?
It can be.
Don’t worry.
Student loans, credit cards, car payments or other types of debt probably keeps you up at night and causes you a lot of extra stress.
Take a deep breath and start with listing out all of your non-mortgage/rent debts.
Start with the debt carrying the smallest balance, working up to the largest
If two debts have similar balances, the one with the higher interest rate goes first.
Then:
Decide to pay the minimum balance on each debt.
Determine how much extra can be applied towards the smallest debt.
Pay the minimum payment, plus any extra money you could muster, on the smallest debt until it is paid off.
Once a debt is paid in full, add the old minimum payment (plus any extra amount available) from the first debt to the minimum payment on the second smallest debt, and apply the new sum to repaying the second smallest debt.
Repeat until all debts are paid in full.
It’s not all that difficult, but I’m a visual person.
So here’s a graphic example of the debt snowball repayment method:
Debt
Total Balance Due
Minimum Payment
Adjusted Payment
Amazon Visa
(225.00)
(15.00)
* Assume this is paid off
American Express
6,500.00
90.00
90+15.00 (105.00) until paid off
Auto
10,300.00
285.00
285.00 + 105.00 (390.00) until paid off
Discover
19,900.00
325.00
325.00 + 390.00 (715.00) until paid off
NOTE: If this debt is paid in full, and you find yourself in a position to put the entire balance (225.00 in this case) plus the minimum payment towards the next debt… you will accelerate your debt repayment schedule.
Once each debt is paid off in ascending order, adding the prior minimum payment will escalate the rate at which you pay the next debt.
Get it?
You will.
Debt snowball is great for those of us who need a little extra motivation.
Those of us who like to “check things off our list”, so to speak.
If you pay debt down to “zero”, regardless of how big… it can give you a sense of accomplishment you need to pay off the next one quickly.
And the one after that…
And the one after that…
And so on.
Debt snowball is great for those of us who like to “check things off our list” and who need a little extra motivation.
Hopefully, as you approach the finish line (or final debts owed)… any extra money being put towards the larger debts should grow more quickly, akin to a snowball rolling downhill gathering more snow.
Thus, the name for this method.
There are a plethora of debt snowball calculators to choose from online… I liked the one from Nerdwallet the best.
But it’s a personal choice.
Dave Ramsey also offers an online packet that you can print out to help you get your started.
There is always help to be found.
What is Debt Avalanche?
Debt Avalanche focuses on paying off the debts with the highest interest rates first.
The total balance is irrelevant.
The idea here is to get rid of those high-interest debts faster, so as to pay less interest over time and pay off the principal.
Believers of this method believe that getting rid of interest will save them the most money in the end.
Debt avalanche works like this:
Identify the debts with the highest interest rates.
Make a list of those debts in descending order (high to low).
If you haven’t already done so, subtract your living expenses from the monthly budget to come up with your “free cash” amount
Apply your “free cash” amount to your debt repayment schedule, using that money to pay off your minimum balances first…
Whatever is leftover should be applied to the highest interest debt.
Huh?
It’s not that complicated.
Look!
Another chart…
Debt
Total Balance Due
Interest Rate
Minimum Payment Due
American Express
6,500.00
18.35%
90.00
Amazon Visa
225.00
15.89%
15.00
Discover
19,900.00
13.62%
325.00
Auto
10,300.00
3.25%
285.00
Unlike the debt snowball chart we provided early, this chart lists the same debts… but in descending order based on highest interest rate.
Now, say you’re free cash amount is 1050.00 per month.
Your monthly minimum payment total is 715.00.
That leaves you with 335.00 in free cash to apply towards the highest interest bearing debt.
In this case, the American Express.
So you would pay the minimum amounts due on the Amazon Visa, Discover and Auto… and 425.00 to American Express (90.00 + 335.00).
You will continue to do this each month until the American Express is paid off.
Then you’ll move on to the Amazon Visa.
Then Discover.
Finally, the car.
Debt Avalanche focuses on paying off the debts with the highest interest rates first to get rid of those high interest debts faster and pay less interest over time and pay off the principal.
Debt Snowball vs. Debt Avalanche: Finding a Common Ground
There are distinct differences to these methods, but their end game is the same.
They are designed to help you get out of debt.
On paper, the debt snowball and debt avalanche methods are nearly identical in their initial setup… with the lists and determining your “free cash” budget.
And both provide ways to pay down debt faster.
In fact, some financial gurus even suggest using the methods together.
This involves sorting the debts by the highest interest rate… but then choosing to start by repaying the debt that annoys you the most.
Ignoring both the interest and total balance.
Think of it as a kind of a debt repayment smorgasbord.
Tasty sounding, right?
Final Thoughts on Debt Snowball vs. Debt Avalanche
Choosing how to repay your debt is a personal choice.
And, quite frankly, the greatest chance of success will come from a plan you can stick to.
You have to feel motivated to kick debt to the curb!
So in my humble opinion, if you are a “check items off the list” type of person… the debt snowball plan of attack will likely keep you the most motivated.
And staying on track is more important than a few extra bucks you’ll save in interest over the next few years using the debt avalanche repayment method.
Conversely, if you are mathematically wired…
If you can see the big picture…
If you are sickened by the thought of giving creditors even 1-cent more than you have to…
Then you’re likely to be seduced by the debt avalanche.
And that’s fine.
Both work if you want them to.
Don’t cheat the system… pay your due diligence… and you will succeed.
Snowballs.
Avalanches.
They are both about gaining ground.
Gaining momentum.
So pick the debt repayment strategy that works for your lifestyle and personality, and take hold of it!
By re-paying one debt at a time, no matter how small, you are moving one step closer to financial freedom.
And that, my friend, is something to be proud of… no matter which road you took to get there.
Nicole Krause has been writing both personally and professionally for over 20 years. She holds a dual B.A. in English and Film Studies. Her work has appeared in some of the country’s top publications, major news outlets, online publications, and blogs. As a happily married (and extremely busy) mother of four… her articles primarily focus on parenting, marriage, family, finance, organization, and product reviews.
If you’re like the 50% of Americans in this 2017 report, then you might be living paycheck to paycheck.
Even though the economy has seen significant improvement and people are earning more, there are still those who can barely make ends meet every month. This is something that makes you stop and think.
The biggest cause of this disparity is the fact that most people are neck-deep in debt.
Whether it’s because they want their lifestyle to reflect their earnings or they are afraid of missing the latest trends in fashion and technology, many Americans spend more than they can afford.
Having financial problems can take a toll on a person’s health and damage relationships.
But there are ways to correct the issue. In this article, we’ll talk about how to stop spending money on unnecessary things in order to achieve true happiness and freedom.
First, let’s discuss the reasons for our overspending.
7 Reasons Why We Overspend
1. We overspend because it is now too easy to swipe a card or click the “buy” button.
To be honest, plastic just doesn’t feel the same as holding onto paper cash.
It is easy to use credit and overspend more than you would if you had cash because you may not even look to see how high your credit card balance is, or how small your checking account balance is.
When you count out your dollar bills when you’re buying something, you’re aware of the amount of money that you are giving up. Researchers have even named this behavior “the pain of payment.”
But this doesn’t happen when you pay with a card or buy something online. You don’t have to look at the total before signing for the purchase, which is why this can easily lead to overspending.
2. We believe that it’s socially acceptable to incur debts.
If you have a balance on your credit card every month, or are swimming in endless student loan debt, adding some more debt may not feel like a big deal.
It may even seem to be the “norm” among the people you know. Incurring debt may even feel like a valuable investment.
In fact, one study found that among people between the ages of 18 and 27, credit card and other loan debt was directly correlated with a higher level of self-esteem and a feeling of more control over one’s life.
However, this feeling fades with age, likely as people start realizing how long it will take to pay off the debt that they have incurred.
3. We do not track our expenses, nor have a budget.
A recent survey found that only 41% of Americans use a budget and actually track their expenses against that budget each month.
This suggests that most people have no idea how much money they should be spending every month in different areas of their lives, such as food, living expenses, car payments, entertainment, and clothing.
Without having a budget for these expenses, it is easy to go overboard without realizing it.
4. We use retail therapy as a way to numb or momentarily escape pain.
A recent study found that over half of Americans admit to turning to “retail therapy” during times of stress. Additionally, 62% of shoppers have made purchases to cheer themselves up, and 28% have made purchases to celebrate something.
When people think of retail therapy, escape, entertainment, and excitement usually come to mind. Online shopping is increasingly noted as being a type of “mini mental vacation.”
Shopping is a pretty mindless, relaxing activity—especially if you’re not buying anything. However, sometimes, when you come across just the right thing, you feel like you have to buy it.
5. We have no clear idea how much our net income is (after paying our bills, taxes, and other deductibles every month).
Sure, you know what your salary is, but have you ever broken that down into your expenses? Even if you believe your salary is relatively high, bills and expenses add up quickly, and the numbers may be shocking once you add them up.
Don’t just think about your mortgage and cell phone bill—take into account your car insurance, personal property taxes, and the money you spend on the weekends for entertainment.
Create a spreadsheet that has your income and expenses on it to see how much money you have left at the end of the month. Chances are, it isn’t quite as high as you may think.
6. We are in denial about our own spending habits.
If you refuse to track your spending or create a budget, or you convince yourself that you can’t afford to save money, you’re probably in denial about your overspending.
Overspending doesn’t just mean that you are spending too much money on things that you don’t need, it also means that you could be spending too much money on things that you try to convince yourself that you need.
Most people are neck-deep in debt, spending more than they can afford because they are afraid of missing the latest trends in fashion and technology.
When you’re not in denial, you are able to limit your purchases to just the things that you need, not the things that you want in the moment—which is a good sign that you have control over your finances.
7. Ads compel us to buy stuff we don’t need. We have a fear of missing out, and overspend to keep up with the rest of society.
Everyone wants to keep up with the people around them, and acquire all of the new material items that are popping up. Social media has added to this problem for two reasons.
First, you see people that you know in pictures wearing the coolest new clothes or having the hottest new bags.
Second, companies are able to advertise on social media—especially the more expensive items that are probably outside of your budget. In fact, your browsing activity can help companies send you very targeted adds to try to pique your interest.
But research shows that 39% of people have spent money they didn’t have in order to keep up with their friends, and 36% of people don’t think that they can keep up with their friends for one more year without going into debt.
So while there are a lot of reasons that people overspend, there are also several reasons why you should focus on saving money.
Hopefully, you will find these reasons to be compelling, and realize that the things that cause people to overspend are not worth it in the long run.
Why You Should Focus on Saving Money
It makes you feel more in control of your life.
When you are secure in the knowledge that you have some money saved, you can feel that you have a better grip on things.
You don’t have to feel like you always have to depend on other people to help you get out of a bind because you have the money put aside for emergencies when you need it.
You also know your spending limits. If you stick to them, you will be able to control exactly where your money goes, and live in line with your priorities and values by spending more money in certain areas and less money in others.
It improves your health.
Knowing that you have some funds set aside helps you feel less stressed about making ends meet. And the truth is, a lot of people cite finances as being their biggest source of stress. This peace of mind helps reduce your risk of hypertension and other diseases.
As a result of financial stress, people often lose sleep, have anxiety, obsess over past financial decisions, and even fight with their spouses.
What’s more, money stress can feel like it will last forever when you’re in the thick of it, which may make it feel even worse.
It helps your weight loss goals.
There is a positive correlation between saving money and losing weight. Most people spend their income by eating out, and eating fast-food fare is the main reason for the rise of obesity in the United States.
Eliminating this unhealthy eating habit not only helps you save money, but also allows you to have healthier meal options and the opportunity to slim down.
In fact, some of the healthiest foods in the world are actually the least expensive. Buying produce that is in season, along with whole grains and beans, will provide your body with all of the nutrition that it needs to stay healthy.
If you stop spending money on restaurant food, you will save more money than you could imagine, and you will start to drop weight quickly.
When you are secure in the knowledge that you have some money saved, you can feel that you have a better grip on things.
It is good for the environment.
If you are conscious about your use of electricity and water, then you reduce the amount on your monthly utility bills. By deciding to live more thriftily, you can maximize the 3 R’s: reducing, reusing, and recycling.
Even if you are spending a little bit more money up front for an eco-friendly car, you will be saving money in the long run on gas, while also helping to save the environment. The same goes with upgrades to your home, such as insulated windows or efficient appliances.
While these things cost a bit more in the beginning, they will greatly reduce your monthly bills and therefore pay for themselves in no time. Also, they help save electricity and keep the environment clean.
It helps you become more independent financially.
Being financially independent means having the freedom to make choices that are not dependent on your monthly paycheck. Everyone defines “wealth” differently, but one thing that most people agree on is that wealth equates to financial independence and a savings account to depend on.
This means that you have the freedom to make decisions in your life independently from earning your paycheck.
This may mean that you can help out family members financially, take vacations every year, or choose personal satisfaction over salary when considering what type of job you want.
Financial independence doesn’t necessarily mean that you’re rich—it simply means that you don’t have to depend on your paycheck or other people if something comes up.
You have something to use in case of emergencies.
Unforeseen circumstances could include being injured and unable to work, needing a major auto or home repair, losing a job, or having to fly out to another state for a close relative’s funeral.
These examples all require you to spend money, and having set aside some in savings can help prevent you from going into debt.
When these unexpected things occur, you will be relieved to be able to turn to your savings account rather than having to take out a loan or incur debt. It is best to have about six months’ worth of savings set aside to pay all of your living expenses in case you lose your job.
In this eight-minute video, Matt D’Avella talks about money and the overspending issues we face, gives reasons why we might not manage money properly, and provides tips on how to manage personal finance through a minimalist approach.
11 Tips on How to Stop Spending Money
1. Understand what psychological triggers compel you to spend.
In many cases, figuring out how to stop spending money relates to identifying the emotional and psychological triggers that lead to your spending.
By removing your habit triggers, you will no longer have the opportunity or the temptation to spend money that you don’t have.
It could be that you’re unhappy (emotional), with shopaholics (peer pressure), in a Christmas crafts fair or your favorite dollar store (environment), or trying to keep up with a luxurious way of life (lifestyle).
When you know these triggers are going to be present, make sure to just carry a little bit of cash with you instead of hanging on to your credit card. This will help limit your spending.
The important thing is that you surround yourself with people and environments that will not tempt you to go overboard with your spending.
When you pay for things with cash, you see how much money you have and how much you’re giving away. Paying in cash forces you to only spend what you have.
Cut up any credit cards that are specific to one store, and try to only keep one main credit card open, if any. Make sure you pay off the entire balance each month so you don’t incur interest.
3. Spend only the money actually available to you.
The cash envelope system is a good way to stick to your budget and use only the money that is actually available to you.
Based on your budget, put the amount of cash that you can spend in every category (such as food, clothing, and entertainment) into an envelope every month. Once the cash is gone, it’s gone for the month. This will force you to budget properly and not overspend.
By paying with cash, you will not rely on credit, and you won’t spend money that you don’t have. The cash envelope trick will encourage you to get creative and resourceful with your spending.
If you overspend one month and don’t have any money left to go to the movies with your friends, you will have to come up with new ways to save money, or think of less expensive ways to hang out with your friends.
4. If you think you need to buy an item, ask yourself a couple of questions:
a. What value will it add to my life? If the item brings happiness or serves a purpose, then the purchase is worth it. But look at your motives.
Do you want to buy the item because it will truly add to your life, or are you trying to impress someone else? Before you purchase something, give it some serious consideration.
b. Do I need this item to get through the day? If you answered no, then the purchase can wait, and perhaps you’ll realize that you don’t need the item at all.
c. How often will I use this item? If this is something that you will probably use once and then leave in a closet to gather dust, pass on it. Also, is this item something that you could borrow from a friend if you only intend to use it a few times?
The infographic below shows examples of items you should not be spending your money on if you want to live a happier life.
5. “Shop” in your closet for clothes.
The average American throws away about 80 pounds of clothes every year. If you feel the urge to buy new clothes, try looking into your closet first for something that you may have only worn once.
You might be able to put together an outfit that you had never thought of, or put together some of your existing clothes to meet a current trend that you hadn’t thought of before.
First, you need to get your closet organized and fix any clothes that have holes or are missing buttons. Then take out some jewelry cleaner and get all of the tarnish off of your old jewelry to make it look new again.
If you can get your basics looking great, you will have enough clothes to last you through the whole season.
6. Develop good money habits.
Becoming financially savvy is a way of increasing your savings and adding value to your life. Good money habits are all about small changes and critical adjustments in your mindset.
For example, you can create rules for yourself, such as waiting one month before buying something that you see to give yourself time to really consider it (or forget about it). Or, you can tell yourself that you have to get rid of two items that you own for every one item that you purchase.
It is also important to examine your frugal habits to make sure that they are indeed worth it. For example, if you are driving 10 minutes out of your way to save a few dollars on gas, it probably isn’t worth your time or the extra mileage on your car.
The best thing you can do is to keep things simple and create a budget that you can stick to. Don’t let your finances get too complicated by using multiple apps and creating several spreadsheets. This will increase your chances of giving up your good spending habits. Just keep it simple.
For more on these habits, take a few minutes to check out the video below:
7. Avoid eating out.
In addition to spending less money by cooking your own meals, not eating out also means you’re in control of how healthy your meals are. Yes, eating out is easy and it saves time. But if you’re spending $8 on a fast-food lunch every day, that’s $240 per month.
The key is to create a plan to avoid eating out. Start by meal planning and prepping food on Sundays to last you through the week.
A lot of people don’t feel like cooking when they get home from work, so avoid that by doing it all ahead of time. And you don’t even have to make everything from scratch. Using frozen vegetables is both cheap and healthy.
8. Embrace minimalism.
Minimalism is intentionally living with just the things you really need. It allows you to see and appreciate the value of what you have in life. It also discourages you from buying more stuff.
Minimalism is becoming increasingly popular for several reasons. Not only does it save money because it forces you to differentiate between essential items and non-essential items, but it also is environmentally friendly because it reduces waste.
Minimalism also offers a life with a reduced amount of stress, fewer distractions, and an increased amount of freedom
Finally, while consumerism is alive and well, there is a growing number of people who are starting to see through the fiction of the claim that every new product will actually make your life more fulfilling. While people often try to find happiness in new possessions, they are typically left unfulfilled.
In this 15-minute TEDx video, Ryan Nicodemus and Joshua Fields Millburn, known to their readers as The Minimalists, share their thoughts on what makes people truly rich, the definition of minimalism, and finding happiness and value in their lives.
9. Be aware of financial pitfalls as you become successful.
When you begin to earn a significant amount of money, it is tempting to buy stuff that reflects your current lifestyle. Learn to avoid lifestyle creep to keep your spending at bay.
If you start making more money or your bills decrease, boost your savings rather than making your lifestyle more lavish.
Don’t make former luxuries into your new everyday rituals—those things will no longer be special, and you will be back in the financial situation that you were in before your net income increased.
10. Get stuff for free.
If you need some items, why not try getting them secondhand through an online community whose members give stuff away for free in their areas, such as Freecycle?
You can also ask around to friends and family if you need something specific. Whether you want to borrow it or keep it, most people are holding onto all kinds of things that they have no use for anymore.
11. Use your free time for hobbies.
When you are busy doing things you love, not only will you keep life interesting, but you’ll also have less time for shopping.
Spending your time doing hobbies is fulfilling and can be as inexpensive as you want it to be. Find your passion and put your time and energy into cultivating your talents or knowledge in that area.
Find a friend who shares your hobby and team up to do it together. Adding the element of a human connection to any activity you are doing makes it all the more fulfilling.
Final Thoughts on How to Stop Spending Money
Today we’ve learned that most Americans have difficulty managing their finances, despite the fact that they’re earning more in recent years.
We’ve also discussed the solutions to financial issues, with the primary action being making a change in your spending habits.
We hope that the suggestions listed here on how to stop spending money on unnecessary stuff will lead you to a life full of true and lasting happiness and financial freedom.
If you are interested to learn more about positive financial habits, head over the following posts for helpful tips on how to achieve financial stability and success.
There might be affiliate links on this page, which means we get a small commission of anything you buy. As an Amazon Associate we earn from qualifying purchases. Please do your own research before making any online purchase.
Living frugally simply means that you’re intentional with how you spend your money.
You’re aware of your priorities and values and what you need to do to obtain those things in life. You can identify the things that are less important to you and therefore reduce your spending in those areas.
So while one person may think another is
“missing out” because they don’t have the newest or most upgraded smartphone,
the other person may not value extensive smartphone features the way that they
value the idea of having money to travel in the future.
I recently had a lesson in frugality when my expensive, popular name brand dryer needed a second repair within the three years that I’ve owned it. The first repair had cost me about a third of what I had initially paid for the dryer.
When the second repairman was finished looking at the most recent issue, he told me it would be less expensive to buy a new dryer than it would be to fix the problem.
I couldn’t believe that to be true, but
the repairman went on to ask me how many of the 17 settings on my dryer I use.
…I think…two?
He then made the extremely valid point
that there’s no use in spending excess money on features that I never
use–especially because all that does is
increase the number of things that could possibly go wrong with the machine.
He quickly convinced me to buy a durable,
affordable, and dependable option that I have found provides me with the exact
same outcome that the last product did. It
dries my clothes.
This is just a personal example of
figuring out what your priorities are and cutting costs where you can so you
can use that money in the future in ways that will benefit you more.
In this article, I will share some frugal living tips that you can incorporate into your life. Of course you don’t need to adopt them all, but hopefully you will learn some pointers here that can help you move closer toward your financial goals.
Planning what your family will eat for the week ahead of time lets you use your current pantry inventory, keep track of your family’s favorite meals, and stick to a budget-friendly grocery list of items you actually need to make your meals.
2. Walk to Work
Save money on gas by walking to work (or
biking) if your commute makes it possible to do so. If not, ask your employer
if you can work remotely from home one or two days a week to save on travel
expenses.
3. Program Your Thermostat
According to the U.S. Energy Information Administration, heating and cooling account for just under half (42%) of home energy costs–and a lot of these costs occur when you’re heating or cooling unused spaces (such as when you’re not home or asleep).
Program your HVAC system to keep your house at
the best temperature only at times when
you’re home and need the temperature
to feel comfortable. This way, when you’re at work for the better half of
the day, you’re not wasting money on utility bills by maintaining a certain
temperature in your home.
4. Plan Your Errands
When you have errands to run, plan your route in a way that keeps your stops all in the same area, allowing you to drive the fewest miles possible.
It’s also a good idea to set aside just one day to run your errands rather than making a lot of smaller trips during the week.
5. Wait Before Buying
If you come across something that you want but don’t need, wait 24-48 hours before committing to buying it. Impulse buying can be a big source of money down the drain, and more often than not, you will decide against making the purchase anyway.
Waiting also helps you prevent lifestyle creep. The video below talks about why lifestyle creep happens and a few examples and gives 7 simple habits to avoid the temptation of this mindset.
6. Get Rid of Cable
It took me a while to take this leap, but what I considered to be a “leap” at first was hardly a small step.
With Netflix, Amazon, YouTube, and all of the other streaming options, I realized I really was never watching regular television anyway. And, even so, there are better things to do with your time.
7. Buy Produce that’s in Season
Buying produce that’s in season will save you money simply due to supply and demand. Out-of-season produce requires more travel, time, and unnecessary expenses to grow in a greenhouse, and those extra costs get passed on to the consumer (you).
8. Use Cashback or Money Saving
Apps
Apps such as Honey, Ibotta and Rakuten can help you get some money back on your everyday purchases. When you couple this with store coupons and plan wisely, you can end up saving a lot of money.
Using cashback or money savings apps can help you get some money back on your everyday purchases.
I use Ibotta, and here are my monthly earnings
thus far. I’m only shopping for myself and one young child, so these numbers could be much higher for
those of you with more people living in your home.
9. Buy “Previously Loved” Items
Most (all?) cities have Facebook “buy, sell,
and trade” groups where you can buy things at a small fraction of the retail
price. This is a great place to look if you’re in the market for furniture,
kids’ toys and books, and even services (such as gutter cleaning or
lawnmowing).
10. For Large Expenses, Aim for
“Mid-Range” Items
This goes back to my whole dryer fiasco. When
you’re shopping for cars, appliances, or anything that you know you will be
using on a regular basis, there is a
difference between being cheap and
being frugal.
Being cheap is buying the least expensive item you can find, however, this often leads to costly repairs due to the low quality of the item, or it becomes a complete waste of money because the item breaks soon after you buy it, putting you back in the position of shopping for it all over again.
Products that are in the mid-range in price
usually have the durability that you’re looking for, but lack the extra
features that you a) don’t need and b) increase the likelihood of something
breaking.
11. Stick to Your Shopping Lists
Whether you’re going to the grocery store or a store like Target or Walmart, stick to the list that you’ve made.
You can use the Cozi app for making lists–it’s free and you can share it with the whole family so you don’t end up buying two of something because more than one person in your family stops by the store.
12. Grow a Garden
Check out what fruits and vegetables can be grown at home and start your own garden where you can literally hand-pick your meals. This is something that you can do that will keep saving you money over a long period of time.
13. Don’t Get FOMO from Sales
I’m actually currently dealing with a great example of this. Several weeks ago, I was in a thrift shop and came across a designer dress for sale with its original price tag still attached.
I tried it on, it didn’t really fit, I personally considered it to be ugly, but I’m also aware that I don’t really understand some of these extremely high-end designers.
Realistically, seeing as it was 98% off on the
thrift store rack, I couldn’t just let it
sit there for someone else to discover.
But I’m
starting to feel like those seven spent dollars…were a waste.
If you see something on sale–whether it’s a major discount or only a little bit–consider first if you would want the item if it were free to begin with before jumping at the opportunity to “save” money.
You might not realize how quickly you go through paper towels until you get down to your last roll and you know you won’t make it to the store for a few more days.
Make initial investments in things like microfiber cleaning cloths, wool dryer balls, and glass food containers to save money in the future on the disposable items that you’re used to buying.
When it comes to the staples in your pantry–flour, sugar, salt–buy the store brand.
Even for over-the-counter medications, just look at the active ingredient in the generic version vs. the brand name and you will likely see that they’re exactly the same, but have a huge price difference.
16. Cut Up Your Credit Cards
Yes, it’s simple to charge things to a credit card today and worry about paying for them later. But when “later” comes around, you’ll realize how much all of those little things added up.
Then, if you don’t have the cash to cover all the small things you purchased–most of which are probably long gone–you’ll end up paying interest.
Avoid using your credit card on a daily basis, stick to using cash to avoid spending money that you don’t have.
If you’re already in debt due to past credit card use, check out Unbury Me, which is a loan calculator that will help you pay off your debts. And, in the future, stick to using cash from the start to avoid spending money that you don’t have.
Implementing a spending freeze every once in a
while can help you make huge progress toward your frugal lifestyle goals. Here is a guide to imposing a spending freeze that will give you a better
understanding of how much money you needlessly spend on a regular basis.
By not spending any money (aside from
necessary bills and food) for a predetermined amount of time, you will be able
to get an idea of just how much you could be saving.
19. Auto-Draft Your Payments
Having your bills automatically come out of
your bank account will help you avoid
late fees if you accidentally miss a deadline. It will also help you save on the convenience fees that are
often charged if you use a debit or credit card to pay a bill.
20. Avoid ATM Fees
Some banks offer a benefit of waiving any charges from using a different bank’s ATM, but not all banks do this.
If you’re not offered this benefit, stick to the ATMs that are directly linked to your bank if you need to make a cash withdrawal. Otherwise, you may end up paying up to $6 in convenience fees for both banks combined.
21. Upcycle
Before getting rid of something that you don’t use anymore, see if you can upcycle it in some way.Here is a gallery of various ways you can upcycle items that you’re no longer using and make them into something both useful and beautiful.
22. Use Online Coupon Codes
Always search for online coupon codes before making an online purchase. If you can’t find one, see if there is a mailing list you can join for the company that will offer you a certain percentage off of your first purchase after entering your email address into their system.
23. Buy a Membership
If there is a museum that you frequent or a
zoo in your area, go ahead and buy a
yearly membership. Even if it seems expensive up front, it will likely
quickly pay for itself if you know you will be visiting the place often.
This will also give you and your family
something “free” to do on days that you don’t have anything planned.
24. Hang Your Clothes to Dry
Whenever possible, use a clothes line or a drying rack to hang dry your clothes. This will help save you money on energy expenses–plus, it is more gentle on your clothes and will help them last longer.
25. Buy Your Own Modem
While this is an up-front expense, buying your own modem instead of leasing it from your internet provider will save you money in the long-run.
26. Check Out YouTube Videos
If something in your house breaks, check out some YouTube videos to see if it’s an easy DIY fix.
I recently saved (what I assume to be) a ton of money by following the instructions of a short YouTube video that walked me through removing a complicated drain stopper on a tub in order to de-clog it. This saves money and–let’s be honest–will make you feel completely capable.
27. Wash Your Clothes in Cold
Water
Using the cold water cycle will save energy (and money) and it isn’t as harsh on your clothes.
Due to advances in detergent formulas and the designs of washing machines, almost all clothes can now be washed in cold water.
Using the cold water cycle has two benefits: It will save energy (and money) and it isn’t as harsh on your clothes as hot water is, so it can extend the life of just about everything you wash.
And then once you started reading it to them, they were less than impressed–and, despite the excitement in your voice when offering to read it in the future, they constantly turn it down in favor of their same. old. favorite?
Aside from giving you free access to what can only be considered to be endless
resources, going to the library also lets you “try before you buy” when it
comes to any book (not just kids’
books) which can definitely save you money in the end.
29. Ask for Samples
If your doctor prescribes you with a
medication that you expect will come with a high cost, ask if their office has any samples that you can try. Sometimes,
they will give you enough samples to last you quite some times before you will
have to fill the prescription.
Not only will this save you money, it will also save you time and effort on those nights you don’t want to cook and are tempted to grab something “to go” at a restaurant. To get started, here is a 8-step process on how to meal plan.
31. Use Less
You probably don’t need to use as much laundry
detergent/shampoo/dish soap as you do. A little bit really does go a long way, so look at the label and see what they
recommend and compare that to how much
you’re used to using.
32. Stock Up
When something is on sale (or especially on clearance), buy as much of it as you can so you won’t have to buy it again for a while in the future.
Often at my grocery store, they will have a “Spend $40, Save $10” deal on paper products, and I always stock up during those sales. That makes the entire purchase 25% off!
33. Don’t Buy Portioned Foods
I know it’s so much easier to buy pre-cut fruits and vegetables and snack-sized bags of chips, but doing so is a lot more expensive than taking the time to portion these things out yourself.
I think we have all realized the cumulative
costs of eating at restaurants on a regular basis. Pack your lunch and snacks for work instead of grabbing something while
you’re out. This will help you improve your health as well as your
finances.
35. Shop Alone
Shopping alone will prevent you from spending extra money.
The more people you bring shopping with you
(mainly children), the more likely you are to spend extra money. They will inevitably see something that
they want that they wouldn’t have otherwise known about–and half the time,
you may give in.
36. Shop Your Pantry
What can you make out of what you already have at home? Use Supercook.com to enter the ingredients that you have on hand and find recipes online that you could prepare right now.
37. Watch Your Oven Use
This is actually a personal pet peeve of
mine–if you have something small that you want to reheat (or even cook for the
first time), don’t use the energy to
heat up your entire oven to do so. If you have a toaster oven that can fit
the item, it will serve the same purpose.
38. Save Your Baby Essentials
After having your first baby, don’t rush to get rid of all of the items taking up space in your house once your baby outgrows them.
Keep toys, clothes, rockers, and your crib for a little while, even if you aren’t planning to have a second child any time soon. You never know what you may decide in the future, and rebuying all of those items is expensive.
39. Only Use What You Need
Turn off the lights when you leave the room, don’t let your water run while you’re brushing your teeth, don’t leave things plugged in that you’re not using. All of these things add up in expenses. (Use an expense tracker to help you budget more efficiently.)
I know
you probably don’t want to worry about preparing your own food when you’re on a
trip, but do your best to eat “in” as much as you can.
Bring snacks with you from home to have for your trip and check out the local
grocery stores wherever your destination is.
…and stick to it. Sites like Mint.com can help you track any money that comes in and goes out.
As of 2016, only 41% of Americans used a budget to manage their finances–and it’s hard to stay on track with your money goals if you don’t know where you stand at any point.
44. Declutter and Downsize
If you got rid of everything that you own but don’t use, would you need to have such a large living space?
Studies show that houses have drastically increased in size since the 1970s–but the number of people living in each of these large houses has decreased. Having a smaller house will result in a lower mortgage payment, as well as lower utility and maintenance costs.
This is something that you don’t want to be
cheap with, but you certainly can shop around for competitive rates. Get several quotes each year for things
like car insurance and homeowner’s insurance.
46. Don’t Buy a New Car
The single worst financial decision” you can make is buying a new car.
Buying a brand new car has been referred to as the “single worst financial decision” you can make. Your car’s value will go down 20-30% during its first year of life. Instead, go for the “barely used” car and save a ton of money.
47. Shop with Gift Cards
You can buy store gift cards at a discounted
rate on sites such as Cardpool.com. The card codes are often emailed
to you right away, so you can use them
the same day you find them.
48. Literally ASK for Discounts
I recently agreed to have a company come out and spray for mosquitos and other pesky bugs every other month.
The price they charge for this service is about $50 per month and I essentially told the person on the phone that I didn’t want to pay that much. So she gave me the service for $35/month. It can’t hurt to ask.
49. Use a Discount Prescription
Program
If you pay a lot for your prescriptions, look into programs such as GoodRx, RxAssist, or Cost Plus Drugs. These resources can help save you a ton of money on expensive prescription drugs.
50. Travel at Odd Times
Try heading out for your vacation mid-week on a Tuesday or Wednesday, as it’s cheaper to fly during the week. Also, look for flights with discount airlines so you can pay less to travel and have more spending money for your trip.
Final Thoughts on Frugal Living
You may think that frugal living will make you
feel like you’re depriving yourself, or it won’t really make that big of a difference.
However, by implementing some of these tips
and creating financial goals and priorities, you will be more likely to start
making even bigger changes. Be intentional with your spending, and then sit
back and watch your money grow.
By taking control of your money and your future, you’ll be able to stay focused and make progress toward living the future that you want. Start with a few of these tips, and once you see how easy they are to adopt, you’ll be likely to start using more.
And if you’re looking for more resources to help you stay frugal, read these articles:
Connie Mathers is a professional editor and freelance writer. She holds a Bachelor’s Degree in Marketing and a Master’s Degree in Social Work. When she is not writing, Connie is either spending time with her daughter and two dogs, running, or working at her full-time job as a social worker in Richmond, VA.
There might be affiliate links on this page, which means we get a small commission of anything you buy. As an Amazon Associate we earn from qualifying purchases. Please do your own research before making any online purchase.
Do you have bad money habits?
Are you constantly broke? Needing to borrow money to make ends meet? Spending far more than you should. Impulse buying? Have no idea what a balanced budget looks like? (much less how to make one.)
If any of the above bad money habits sound familiar, you need to take better control of your finances. Or at least learn some lessons to not fall into the major money bad habit traps.
Micromanaging every aspect of our lives is an impossible task.
We just can’t do everything that needs to be done, or we would have no time to do everything.
I am not a CPA and I do not expect you want to become one either. You do not need to become a financial expert by any means. This post will not teach you that level of financial mastery.
What this post will teach you is how to avoid a few very common mistakes people make with regards to their money. Simple things we all face that waste our money along with realistic (meaning: achievable) plan of action to address these issues
Let’s get to it…
5 Bad Money Habits You May Be Guilty of
There is no judgment in these bad financial habits. They are on this list because they are bad money habits that many people do.
These are not the actions of outliers, like spending money on cocaine and loose women. They are ways that 90% of the people, all of us, basically, could use to tighten up our finances.
By no means am I perfect? I fall in these money traps from time-to-time myself. Even though I realize they are not good habits. The important part is to realize these bad habits and try to avoid them most of the time.
Your wallet will love it if you are able to keep away from these bad money habits 90% of the time
1. Running Out of Household Supplies and Kitchen Staples
Do you wait until you’ve run out of a household, personal care or kitchen items before you replace them? If so, you’re losing money.
When you wait until you deplete a consumer product, you have to pay whatever your local store happens to charge for it. If you plan ahead, however, and buy products when you can get a discount via sales and coupons, you can save 20% or more on things like batteries, toilet paper, pet food, and cleaning supplies.
You may have heard about “extreme couponing,” a practice of collecting as many coupons as possible and then tracking stores for sales.
When the “couponer” can get a good deal by combining one or more coupons with a discounted price, he or she heads to the store and buys that product, often in large amounts.
Some extreme couponers have rooms in their homes dedicated to their “inventory” of products that they’ve acquired for pennies on the dollar through couponing.
While you don’t have to go to such extremes to save money, there is some wisdom in buying household goods when the price is right, rather than when you need the product.
Keep an eye out for coupons and sales online, in stores, and in newspaper circulars. When you find a good price on an item, head to the store, preferably with coupons in hand for additional savings.
2. Using Credit and Debit Cards for Everyday Purchases
Debit and credit cards have their advantages: You don’t have to worry about your cash being lost or stolen, and sometimes, you can get great perks (like airline miles or cash back) on your purchases.
The trouble is that using plastic instead of cash can make it harder for you to track how much money you’re spending.
If you’re not sure whether using plastic negatively impacts your spending, consider taking a month off from using debit and credit cards. Pay larger bills with online bill payment through your bank and carry small amounts of cash for other purchases.
Once you’ve given cash a try, you’re better able to determine whether always using plastic is hurting your ability to budget effectively. If using cash isn’t an option, consider using a personal finance app that categorizes and tracks your card-based spending, giving you an idea of where your money is going.
Some chatbots even exist nowadays that offer you as thorough and insistent tracking (read: guilt-inducing) of your expenses as you want.
3. Frequently Eating Out
There’s nothing wrong with the occasional coffee at Starbucks or lunch with colleagues.
But if you have a habit of always buying your morning coffee from a shop, buying your lunch from a food truck, or ordering takeout for dinner, you’re likely spending a lot of money that could be saved or used for better purposes.
As with many bad habits, eating out frequently often stems from a failure to plan ahead. For example, many people buy their morning coffee or lunch at a place near work because they didn’t take the time to pack a lunch or pour a travel mug full of coffee or tea before leaving for work.
If packing a lunch is more than you can handle, consider spending a few hours each week preparing and freezing lunch items (such as wraps, frittatas, casseroles, and soups) that you can take with you to work each day.
Another option is to buy a sealed container, put your name on it, and then pack it with sandwich fixings (bread, lunch meat, cheeses, condiment packets) at the beginning of each week. Put it in your office refrigerator and make yourself sandwiches for lunch.
To avoid excessive coffee spending, consider buying an automatic drip machine. These machines make coffee quickly. Many also have a timer feature that lets you add coffee and water before you go to bed, providing freshly brewed coffee as you wake up. Have a cup at home, pour the rest into your travel mug, and away you go.
Avoid excessive spending by finding money-draining habits and replacing them with good ones.
If you go to restaurants often or have food delivered multiple times a week, chances are that you don’t have much food in the house or, even if you do have food at home, you don’t have any idea of what you’re going to do with it. You can address these tendencies with weekly meal planning.
Before going grocery shopping, sit down and plan your meals for the rest of the week. If you don’t have the time to cook every evening, prepare meals ahead of time.
There are tons of recipe sites online that feature affordable “freeze-ahead” or “make-ahead” meals. Invest in some decent food storage containers and get cooking. You’ll not only save money but since you control both ingredients and portion sizes, you may end up losing a few pounds if that’s what you want to do.
4. Impulse Purchases
Every day you are surrounded by opportunities to buy things online and in physical stores. It’s so easy to hit that 1-Click button on Amazon or pick up a cheap pair of sunglasses when you run into the drugstore to fill a prescription.
But as you probably already know, these little purchases add up to some serious numbers. You can end up spending hundreds, possibly thousands, of dollars each year on stuff that you don’t need because you have a habit of buying things that just happened to catch your eye.
Again, advance planning is your best defense against impulse shopping. Get out of the habit of buying things that you may not need by turning off the 1-Click button and writing up a shopping list before you go into a store.
If you end up having to make an emergency purchase for something you truly need, buy that item and that item only. The product that caught your eye will very likely still be there tomorrow.
5. Spending Everything You Make
If you are a person who lives paycheck to paycheck, even though you earn enough to cover your needs and put some money into a savings account, you’ve developed a habit that likely stems from when you were making less money.
If you spent a couple of years earning a very low, entry-level wage, it may have been difficult to save money. Unfortunately, this means that you may have become comfortable with having no money at the end of a pay period.
For many people, when they start to make more money they experience lifestyle creep and still spend all their money. Watch the video below to learn how to avoid it.
Now is the time to get uncomfortable with the situation and start a savings and investment plan.
If you have never had to stick to a budget before, speak with a financial counselor who can offer a plan for paying down debt and setting up investment accounts. They can also assist in developing a budget that takes your wants and needs into account.
Final Thoughts on Bad Money Habits
The trouble with bad money habits is that they can sometimes be difficult to identify. This is because you’ve become so used to them, it’s hard to understand the negative impact they have on your life.
Once you do identify them, however, you’ve taken the first step toward eliminating these bad habits and creating new, positive behaviors.
And if you’re ready to improve your financial situation, start with by reading these articles:
Eileen Fowler climbed her way out of the hole of debt she once lived in, and is now devoted to helping other people avoid making the same mistakes as her by being preemptively smart about their financial habits.
There might be affiliate links on this page, which means we get a small commission of anything you buy. As an Amazon Associate we earn from qualifying purchases. Please do your own research before making any online purchase.
Books on budgeting all seem the same. For the most part, these books cover the budgeting basics and beyond…
These books discuss the basics of finance:
Creating a financial plan.
How to make a budget.
Becoming debt-free.
Savings and investment.
All of this is really important stuff. no doubt about that.
But people who struggle to just get by every single week may find it difficult to make the money they have coming in meet their budget requirements.
That is where these books on saving money and budgeting come into play.
The point of the books on this list is to give PRACTICAL ADVICE on saving money.
Every one of these books will not give you the same old advice on how to make the budget. These money saving and budgeting books will show you how to make your limited cash flow stretch to reach your budget needs.
These are as much books on frugal living as they are personal budgeting and debt relief books. They discuss specifics on “how to save money” not just give you platitudes on spending less money but to give actionable advice on how to get by on a shoestring budget and still pay down any debt.
That is what makes this collection of books on saving money a bit unique, and very practical.
Even if you have already read some of the best introductory finance books available, these books still have a lot to teach you. If not about the science of budgeting and saving at least about the art of making your income meet your budgetary needs.
If you want to learn how to budget, debt proof living, investing and the 7 money rules for life read the complete money makeover by Dave Ramsey. But if you want to make your dollar stretch further, then read any of these books on frugal living, budgeting, saving money and climbing out of debt.
This account of how Hamm was successful in doing this and the positive changes it brought to his life helps readers use his ideas to achieve his same success.
This book helps to unclutter people’s financial situations and results in a more rewarding life. Going from debt to wealth himself, Hamm is able to prepare the reader for both the expected and the unexpected complexities of personal budgeting in today’s economic world.
This book is full of practical tips and tools that the reader can apply to their own life. Its ability to be motivating and empowering helps the reader to proactively create healthier relationships with both money and people.
Using personal anecdotes, Hamm is able to engage the reader throughout the book and keep them focused. He also gets right to the point without adding in a lot of fluff material, so you never feel like you are wasting your time reading through things that are not important.
While a lot of the points in this book are already made on his blog, this is still a great place to put his message together to help readers achieve the financial success that he has.
365 Ways to Live Cheap: Your Everyday Guide to Saving Money is certainly a frugal living book. But it also discusses ways to save long-term money. For example, using cold water while washing your clothes can save almost $65 a year, while investing in a deep freezer and buying food in bulk can save on groceries.
Hamm encourages his readers to take a look at their own lives and to realize that there are many ways to live on less. Offering a multitude of ways to cut costs, this book on saving money still makes sure that you are living a lifestyle that is satisfying for you.
While some of the tips in this book have been around for a long time, this is a great place to brush up on some money-saving tricks and see what new things you can learn that might help you save.
This book does a great job in pointing out some of the needless everyday spending that people tend to do. It helps readers identify the extra expenses in their own lives that can be cut for the long-term good.
3. Couponing for the Rest of Us by Kasey Knight Trenum
Trenum is well aware of the fact that people do not want to spend time clipping coupons, but also knows how much money coupons can save families in this tight economy.
This book helps people find coupons for what their family eats, ways to cut down on Internet bills, how to determine sale cycles, and how to make shopping less stressful.
The author shows the reader how easy it is to save money on everyday things so that they can have a bit more financial freedom.
One of the best things about this book is that it is not about extreme couponing—it is about manageable things that people can do while they are shopping to help save money.
These habits have been used for generations and can help make cash last longer and accumulate wealth.
This book is fun to read in the sense that the author provides catchy phrases to live by, such as “use it up, wear it out, make do, or do without” and “repurpose, recycle, and reuse.” The smart money-saving ideas illustrated are practical even for those who do not live a life as sensible as the Amish.
This book on saving is both touching and humorous while providing an eye-opening account of how the Amish make ends meet. The stories talk about trading for goods and services, bargaining, living with less, staying out of debt, and even stopping the habit of trying to impress others.
This book isn’t so much about making money as it is about discipline, family, and redefining what it means to be wealthy. It encourages the reader to see more clearly what is really valuable in life, and helps to inspire people to change their views on life.
This is an easy read that will help anyone minimize their consumerism. While there is not a lot of new advice in here for people who already live frugally, it provides a great look into the lives of a different culture that has been able to be financially successful while others have not.
5. The Budgeting Habit by SJ Scott and Rebecca Livermore
Budgeting is the key to success in personal finance. If you do not have a good grasp of your finances through a budget it is hard to manage your money.
Let’s face it. Budgets are boring. This is not a flashy topic, like making money, investing or starting a side hustle. It is drab and boring. Like brushing your teeth.
But what brushing your teeth is to personal hygiene, budgeting is to finance. It may be boring but doing it right is the lynchpin on top of which all financial success rests.
In this book, we tried to make budgeting as interesting as it possibly could be. But more importantly, we strive to give a practical guide to create a simple, but effective budget. More importantly, this book teaches you how to make a habit out of following your budget, making a budget that much more effective.
6. Cut Your Grocery Bill in Half With America’s Cheapest Family by Steve Economides and Annette Economides
The authors offer tips that can cut down on your shopping trips to once-a-week or less while eating healthier and saving money. Written by a husband and wife who practice what they preach, this is a relatable book with a lot of realistic tips.
Known as “America’s Cheapest Family,” the authors present strategies and tricks to save money annually by cutting down on grocery bills. One of the best things about this book is that the tips provided are useful whether you live by yourself or have a family of seven.
This frugal living book is an easy and light read that inspires people to make small changes that can result in large pay-offs. While it may be hard to believe that a family can cut their grocery bill in half, the authors provide step-by-step instructions to do so.
This page-turner has something to learn in each chapter. The reader does not have to finish the entire book before beginning to save money. The money-saving ideas start right away, and the book is easy to jump around in if you want to skip chapters or go back to reread something.
Some of the tips in this book are likely repeats for a lot of people, but they are solid pieces of advice that are worth revisiting. Unlike some other books, this one includes recipes and meal suggestions that are great for people living on a budget.
One of the best frugal living books out there. This book has so many ways to save, and provides a ton of actionable advice to help families meet their budget needs.
7. You Are a Badass at Making Money by Jen Sincero
Jen Sincero had a blockbuster hit with her debut book, You are a Badass. This book helped people to come to terms with the things that were holding them back in life and keeping them from reaching their potential.
She helps people to understand the things that are holding them back financially. She helps people reach their money making potential, and shows us the proper mindset to achieve financial success. And she does all this with a unique style and sass that made people love the first book.
I love simple things. Far too often books on finance are overly complex. It is more efficient to have short, quick but practical advice. That is what I feel this collection of three budgeting books gives.
Each “book” is fairly short, but they are all quick and easy reads thoroughly covering different aspects of proper budgeting.
However, although I liked them because they are easy to follow and logical, I would also have liked more practical examples.
This step-by-step book may be helpful for you if you feel like your budget has gone off track and you can’t make it to the end of the month without counting your pennies. The author provides advice on how to do a month of no spending to reset your spending habits and get you back on your feet.
There are innovative tips on how to gain confidence in planning meals, organizing the home, and becoming more creative without spending money.
With the instant changes that the author provides, readers are motivated to live a month of zero spending while still finding joy in it. There are new ideas on what to do with old food, and even some budget-friendly ways to repurpose things you already have.
With anecdotes from people who have successfully completed this challenge, this book offers encouragement and inspiration to its readers. It includes easy tricks for selling things you own and cutting down on your grocery bill.
It helps change the reader’s attitude about the things that matter the most in life, and that will bring a new level of joy and togetherness to the household.
This book may not be for you if you live alone and are looking for ways to cut costs, but it is great for families with houses and children who want to save money but don’t think they can.
Through her account, the author tells personal stories and provides practical action plans to inspire the reader to make lasting changes to personal finances and goals.
This may be a great savings book for you if you are looking for encouragement during an overwhelming or stressful time trying to meet tight budget requirements. It is aimed towards mothers who are trying to juggle life’s demands with society’s pressure to keep up with everyone else.
It is a practical and relatable guide for women who want to get their lives organized but don’t know where to start. It provides an inspiring and practical lesson on how to spend money wisely without compromising a great life.
While this book does have a largely autobiographic feel to it, some may find this helpful because the author’s personal stories relate to her overall message.
11. The Year Without a Purchase by Scott Dannemiller
It was written by a former missionary who served in Guatemala, and whose family found itself deep in a life of consumption with a never-ending cycle of wanting more but never being satisfied. The family made the drastic change of deciding to not purchase any nonessential items for a whole year.
Readers may begin this book doubting that they could go an entire year without buying clothes or books, but through the humorous wit and poignant conclusions from the author, this book helps readers see their spending in a new light.
Full of interesting research, the book looks at modern America’s spending habits, along with the authors’ own experience of highs and lows while dropping out of the consumer culture.
The book does a great job of revealing what is truly important in life—which has nothing to do with gift-giving or keeping up with the neighbors. The family discovers and shares truths about human nature and what the secret is to finding joy.
This may be a valuable book for anyone who has ever wanted to reduce the stress in their life by focusing less on material items and living more.
12. The One Week Budget by “The Budgetnista” Tiffany Aliche
This book helps to debunk some common misconceptions about things, such as consolidating credit cards and paying off debt. It presents a clear and simple system for cutting expenses and maximizing savings to meet financial goals.
The methods used in this budgeting book are for people of any age, but the book is geared more towards young adults who are climbing out of debt trying to get on their feet.
13. How to Stop Living Paycheck to Paycheck (2nd Edition) by Avery Breyer
This timeless bestseller offers the motivation and knowledge that is needed in order to build up a security net of emergency cash, get out of debt, and avoid the 11 most common but worst budget traps.
Breyer offers her readers some of the most important things that need to be done to take control of finances and pay off debt. Unlike some of the other books on saving money that you find in this post.
Avery’s saving moneyThis book teaches a complete budget system that is even appropriate for young adults who are just getting started—and the methods only take 15 minutes each week to maintain.
This straightforward budget-planning tool helps transform finances to eliminate financial stress. To improve upon the first bestselling book, this edition adds a chapter on money and happiness, which is one of the most important factors when it comes to needless spending.
It talks the reader through a no-nonsense look at the realities of today’s economy and provides an easy path to follow toward financial stability.
Also, unlike other financial authors, Wecks hasn’t struck it rich. He is able to offer a first-hand account of living on the money you have during rough times. Instead of teaching people how to create wealth, this book urges readers to do the best they can with the income they already have, no matter its size.
With jargon-free writing, this book saving and budgeting is easy for anyone to pick up, no matter what the financial background. It is opinionated, which may not resonate with all readers, but it also has its moments of humor.
This is a quick read that is relevant to readers, as it is full of current, everyday references. This is an ideal book for the average reader who is just trying to make ends meet.
15. Living a Beautiful Life on Less by Danielle Wagasky
It includes realistic tips and real-life examples to help the reader relate to what the author has been through, and learn from her experiences.
This book on budgeting is easy to read, as it is written in a casual and conversational tone. It is a funny book while also being encouraging for anyone who needs help navigating their finances and maintaining their budget.
This book is clearly geared more towards women and mothers who are managing the budgets for their households. It can provide hope to a lot of people who are just starting out on their financial journey.
16. The Everything Budgeting Book by Tere Stouffer
However, the book was written over 5 years ago and the age has begun to show a little bit. There is still a ton of good info here, just some that is dated. If you know little about budgeting this could be a great book for you.
This book gives step-by-step instructions on how to handle the most important aspects of personal finance. Such as: How to spend less money. Ways to decrease your common expenses.
How to keep you finances in order. The importance of planning for the unexpected. Setting financial goals. And of course creating a budget.
17. The Latte Factor by David Bach and John David Mann
They do this by telling a parable of a young barista struggling to make ends meet as she is drowning in a sea of debt. As the story evolves she discovers the secrets of wealth and learns the few changes she can make to secure her financial future and live a better life.
I love books like this that blend entertainment and practical knowledge into an enjoyable book. Based on Bach’s other books I am sure that this will be an entertaining and educational book. Find out more in the link(s) below.
Final Thoughts on Books on Budgeting
I hope you enjoyed this list of the 17 best books on budgeting, saving money, frugal living. Hopefully, these books will help you stop living paycheck to paycheck and help you climb out of debt.
I see these books as a practical means to help you heed the advice from many of the best financial books for beginners. You may even find one of these books to be complete enough that it is the only budgeting book you’ll ever need.
If you are interested in general investing, you may be interested in the best investing books of all time. This is a collection 16 books “must-read” books, investment books that should, frankly, be required reading for any aspiring investor before they make any moves with investing their own money.
If you are struggling to meet your day to day living expenses. Real estate investment may seem like a dream from your far, far future. But it may not be as far as you think.
Some of the 16 books below tell you how to start creating an income from real estate investment with little upfront money of your own. Books on budgeting, savings and getting debt free should be first, but real estate investment books may be next on you list.
And if you’re looking for more resources on books to read, be sure to check out these blog posts:
