Spending Hack #3: Cut Back Gradually
Spending Hack #3: Cut Back Gradually
Spending Hack #3: Cut Back Gradually
Does the thought of cutting your spending make you anxious? You are not alone. Some find gradually spending cuts a lot easier than huge spending changes at once. Here are some tips and tricks to gradually slow spending.
Gradual Spending Cut Tip #1: Look for areas to cut spending that in the short term. Like reducing grocery or dining expenses or putting a cap on your Target visits. Long term cuts like refinancing your car for a more manageable payment, or downsizing to a less expensive home take a bit more time and planning.
Gradual Spending Cut Tip #2: Pick a couple of high-dollar areas from step one to focus on this month – areas that make a noticeable impact on your bottom line.
Gradual Spending Cut Tip #3: Make a 30-day plan to trim spending in those areas by 10%. For example, if you typically spend $120 in restaurants, reduce that by $12 in the coming month. The idea is to make the cut relatively easy to achieve without feeling much pain.
Gradual Spending Cut Tip #4: The next month, think about how you can cut your new monthly spending amount by another 10%. You may begin to enjoy finding new ways to creatively stretch your dollars each month, and feel a lot less deprived as a result.
Durham Tech Community, for more personal finance advice or tips, email me at chapmanl@durhamtech.edu
Larry is the Financial Coach at Durham Tech, providing individual coaching services and information to the students and employees of the Durham Tech community.