At the beginning of the year, we all want to save money, especially when we think of what we spent on gifts, food and Christmas vacations. However, in general, these good resolutions are quickly forgotten, and we end the year dry.
Here are five tips for spending less that can help you get your finances in order over the next 12 months.
Set a budget
This is a good place to start when you want to start spending less and is one of our basic money saving tips. Setting a budget allows you to know what you’re going to spend over a period of time and to focus on the essentials. That doesn’t mean you can’t indulge yourself. You can even plan to spend money on it, but limit it and try not to exceed a certain limit each month. This will allow you to start putting money aside.
Avoid using credit cards
Another essential tip. Using credit cards can sometimes create the illusion that you’re not really spending any money, or very little. Especially when it comes to small daily expenses, such as a coffee, that add up quickly. As a general rule, it’s best to use money that’s actually in your account, without deferred debits, so that you can live on your income and not on assumed future income.
Avoid big expenses at the beginning of the year
One of the reasons for the infamous “January blues” is the impact of your holiday shopping on your personal finances. If you spent a lot at the end of the year, it’s best to try to avoid any splurges at the beginning of the year, at least until you get your finances in order and back in balance (especially with respect to monthly fixed costs). Otherwise, you’ll start the year with weak finances, which guarantees a complicated next step.
Organize your savings
You can allocate a certain amount of money to save each month in your budget, but if you want to save more, for example to buy a car or a house, the best thing to do is to open an account dedicated to your savings and fund it monthly through an automatic transfer.
Focus on the essentials
One way to reduce your expenses is to think in terms of what you need rather than what you want. Is this potential expense really necessary? This question applies to subscriptions to streaming platforms as well as purchases of actual items. If you plan to spend less, you can still indulge, but more occasionally.
In the end, it’s important to be consistent and limit your spending a bit by refocusing on the essentials: hopefully these tips will help you think twice before overspending.