How to stop spending money

This article will help explain why you can’t stop spending followed by advice on how to get out of debt and stop spending.

hand full of cash
Share this article

When it comes to learning how to stop spending money, it can be helpful to create a budget and track your expenses.

You can also try setting specific financial goals and finding alternative activities that don’t involve spending money. It sounds easy, doesn’t it? But there is more to it than meets the eye and, as with most things, it helps to create a plan to set you off on the right track and to keep you there.

Understanding what contributes to excessive spending whether it is social pressure, lack of tracking spending, or emotional spending – is crucial. Once you understand that, learning how to stop spending soon becomes second nature and will help you to get out of debt.

Why can’t you stop spending?

Knowing that you need to stop spending money and successfully doing so are two separate things altogether. So, what are the main issues that prevent you from overspending.

1. Social pressure

Social pressure can lead to spending too much money because we may feel the need to keep up with others or meet societal expectations. It’s important to be aware of this influence and make conscious decisions based on your own financial goals and priorities.

2. Not tracking spending

If you don’t track your spending, it can be easy to lose sight of where your money is going. This can lead to overspending, financial stress, and difficulty reaching your financial goals. Tracking your expenses helps you make informed decisions and stay on top of your finances.

3. Lack of awareness

If you’re not aware of what you spend money on, it can be challenging to manage your finances effectively. You might end up overspending, accumulating debt, or not saving enough for your goals. Tracking your expenses helps you gain awareness and make smarter financial decisions.

4. Emotional spending

Emotional spending refers to the act of making purchases based on our emotions rather than practical needs. It can happen when we’re feeling stressed, sad, or even happy, and we use shopping as a way to cope or seek temporary happiness.

How to stop spending

1. Track your spending

To track your spending, you can use various methods such as:

  • Pen and paper

Write down your expenses in a notebook or a spending journal.

  • Spreadsheet

Create a simple spreadsheet to record your expenses and categorize them.

  • Budgeting apps

Use mobile apps like Mint, YNAB, or PocketGuard to automatically track your spending.

  • Bank statements

Review your bank statements regularly to see where your money is going.

  • Receipts

Keep your receipts and organize them by category for easy tracking.

Choose a method that works best for you and make it a habit to track your expenses regularly.

2. Set realistic budgets

To set realistic budgets, start by analysing your income and expenses. Determine your fixed expenses (such as rent, bills) and variable expenses (such as groceries, entertainment).

Set realistic spending limits for each category based on your financial goals. Regularly review and adjust your budget as needed.

All this can appear daunting at first – so if you’re unsure to go about it think about a good friend or family member who might be able to help you work it all out.

Don’t be embarrassed – they’ll be super-supportive when they find out that you’re trying to sort your life out.

3. Understand your triggers

It’s important to be mindful of our emotions and develop healthy coping mechanisms instead of relying on impulsive spending.

Firstly, we know that spending money in response to emotions doesn’t make us happier or less upset.

In fact, it is like pouring gasoline onto a fire and the eventual outcome is always negative and full of regret and worry. Work out what your triggers have been over the years.

Once you’ve identified them you can plan strategies to prevent them leading to you spending too much money.

4. Avoid debt

Sick of being in debt? To avoid debt, it’s important to practice mindful spending and financial discipline.

Create a budget, track your expenses, and prioritize your needs over wants.

Save for emergencies and set aside money for future goals.

Avoid relying too heavily on credit cards and only borrow what you can comfortably repay.

5. Shop with goals in mind

When you shop with goals in mind, you have a clear purpose for your purchases.

This helps you stay focused, avoid impulse buying, and make more intentional choices.

Shopping with goals can also help you prioritize your spending and make progress towards your financial objectives.

Even with grocery shopping – having a shopping list and sticking to it no matter what makes a huge difference.

6. Find your why

It’s common to spend too much money when we’re not mindful of our spending habits.

Impulse buying, emotional spending, and not having a budget can contribute to overspending.

It’s important to track your expenses, set financial goals, and practice self-discipline to avoid spending more than necessary.

Once you’ve found your “why” everything becomes so much easier to control.

How do I train myself to stop spending money?

Practise makes perfect and the first essential to train yourself to spend less money is creating a budget.

Start by tracking your expenses and categorizing them.

Set realistic spending limits for each category and stick to them.

Prioritize your needs over wants and avoid impulse buying.

It takes practice, but with time and discipline, you can develop healthier spending habits.

Why can’t I stop spending money?

It can be challenging to stop spending money when we have certain habits or emotional triggers that drive us to make purchases.

It might be helpful to reflect on why you feel the need to spend and identify any underlying reasons.

Creating a budget, setting financial goals, and practicing self-discipline can also help curb excessive spending.

Remember, it’s a process, and it takes time to change habits.

What is the 50 30 20 rule?

The 50/30/20 rule is a budgeting guideline that suggests allocating 50% of your income to needs, 30% to wants, and 20% to savings.

It helps you balance your expenses and prioritize saving for the future while still allowing some room for discretionary spending.

What is money dysmorphia?

Money Dysmorphia is a complicated mental disorder related to money and wealth.

It impacts a person’s perception of their financial situation.

Most sufferers convince themselves that their financial situation is much worse than it really is.

In many cases there is no need for them to have feelings of inadequacy, anxiety, and distress because they have more than enough money.

What is compulsive buying disorder or oniomania?

The opposite of money dysmorphia is compulsive buying disorder, also known as oniomania.

It is a mental health condition characterized by an uncontrollable urge to shop and spend money, often resulting in financial difficulties.

Get help

Getting help to curb your spending and learning how to stop spending money – especially money you do not have or cannot really afford is important.

Remember, you are not alone and there are plenty of resources out there on which you can rely.

Never, ever let money worries have you consider ending your life – there are so many options available to you – once you choose one the world suddenly becomes a far less worrying place.

Read more about how to get out of debt

FREE Videos & Information!

Please confirm that you would like us to provide you with free of charge support, advice, and guidance as well as information about free books and special offers for Allen Carr’s Easyway self-help programmes.(Required)
This field is for validation purposes and should be left unchanged.