How Making One Change Can Help You Switch Between Being A Spender And Saver.
A leading consumer expert has shared her tips on how to switch from being a spender to a saver..and says one change is the key.
Speaking as part of Talk Money Week, Jane Hawkes said: “For half my life I was a spendaholic. If you could buy it, I bought it – spend it, I spent it and borrow it, I borrowed it.
“In the days before budgeting apps and laptops, I started religiously recording my incomings and outgoings in a little notebook to try and reign in my spending.
“It helped me see exactly what was going in and out- and what I was paying for that I shouldn’t be.
“Now I have a spreadsheet workbook for all my accounts, which means that every penny is accounted for, and because all direct debits and standing orders are deducted at the beginning of the month regardless of when they go out of my account, then I always know how much I have left to play with.
“Being able to easily view and track my finances means that I am a lot more financially disciplined in terms of what I spend my money on. I haven’t used my overdraft in years and I now even have savings accounts with more than £1 in them!
“Using credit cards in a savvy manner has been another good way to end the profligacy. I can now spend and get money for spending.
“Admittedly it’s not thousands of pounds of cash back, otherwise that would be defeating the object, as would be spending more to get more, but it certainly adds a nice little bit of glitter to my purchases.
“In addition I use the card as a debit card by ensuring I record all purchases into my beloved spreadsheets when they are made so that they do not come as a shock when the bill comes in!
“With an inclusion of categories, I am also able to see at a glance what I’m spending my money on and can reduce this expenditure accordingly if necessary.
“Identifying why you spend is a really important stage in the process of changing your ways. For me it was pleasing others, like my boyfriend at the time who loved to spend and always splashed the cash with extravagant gifts and gestures.
“I also spent when I felt a bit down or worried about money. A bit of retail therapy always helped. Finding alternative ways to distract yourself when you feel like that is important.
“I take the dogs for a walk now, or try to do something constructive like plan a zero-spend week and channel that desire to spend elsewhere.
Outlining the key change which helped her most she continued: “I’ve also tried to adopt a 30 day spending rule. If I spot something that is a ‘must have’, I make a mental note of it or even add it to the basket but don’t buy it yet. Wait 30 days (or at least 14 or 7) and if I still want and can afford it then I can get it.
“In the meantime, I think of how I can make money before I spend it. For example, if a new dress is on the cards priced £30, how can I raise that amount? This also helps payday splurges become a thing of the past.
“If you are looking to curb your spending, set realistic, achievable goals. Remember, Rome was not built in a day, and the tortoise wins the race.
“I couldn’t have paid it all off in one go however hard I tried, but bit by bit I chipped away at the debt and now am firmly out of the red and determined to stay there. Having a budget buddy in a new partner really helped me stick to the plan and hold self to account for spending too.
“I have to admit it was really hard work and I couldn’t have done it without the help of others but, yes it was well worth it.
“I’m very proud to be a reformed spendaholic with a new love of saving and able to use my experience to help others as a consumer and personal finance expert.
In summary, Jane’s advice for holding on to more of your cash is:
- Keep accounts – use spreadsheets and basic bookkeeping
- Using credit cards savvily, get cash back
- Identify triggers that make your spend
- Avoid impulse purchases, have a 30 day spending rule
- Set realistic goals and be accountable for them
Image Source: Unsplash
