Reduce spending

Reduce your spending, Reduce your debt

Before you can start to save money, you need to change the way you think about your shopping needs. When you enter the store do you have a list of needs that you are there for? While shopping, do you buy things you don’t need? What is the true cost of buying that extra item? If you paid that amount toward a credit card bill would you be better off? How much would you save in interest on that card if you put that amount there rather than to own that new item? Buying stuff we don’t need is what gets most of us into debt and is one of the reasons that saving money is so difficult.

The next time you have the urge to spend on something, ask yourself these questions:

  1. Do I want it?
  2. Do I need it?
  3. What is the true cost of this item?

If you’re looking at a gallon of milk and there’s no milk in the house, then it’s almost certain that you need it; However, if you’re looking at canned goods similar to those you already have at home, you might want it, but you certainly don’t need it. Are you “stock piling” because the cost is a huge bargain and that will save you plenty of money down the road? If so then you may be able to justify buying those items. If it is a new piece of clothing, then you most likely have other clothes that you can wear rather than to own something new.