Finances are such a sticky subject and many of us don’t share with others. Whilst I don’t share exact numbers, I do like to talk about money with people in my life. It’s a topic that I’m passionate about and I’d love to incorporate it more into my content. That’s why I’m dipping my toes in with a blog post all about how I’ve learned to spend less money.
I’ll start by saying I’m not a financial advisor. These are merely just tips and tricks I’ve learned in life! Anyway, here’s my guide on how I’ve learned to spend less money.
Identify if it’s a need or just a want
This was probably the biggest game-changer for me. Whenever I think about buying something (obvs not groceries or necessities), I sit on it for at least a week. I’ll save the page as a bookmark on my laptop or snap a picture of it if it’s in store. If I’m still thinking about it after that, I’ll consider buying it.
For most ‘fun’ spending, you can probably live without that item. Whilst it always feels good to spend money on fun stuff, often we regret it and wish we’d spent it elsewhere.
For example, my FitBit broke in mid-October and I waited a couple of weeks to replace it. I thought about buying the same one again (about £120) but then I thought about what I use it for. Mainly, I track my exercise and sleep. With that in mind, I downgraded and chose the cheaper Inspire 2 at £44. I’ve had it a week now and can barely even tell the difference!
Unsubscribe from emails and delete shopping apps
One thing I did at the start of my revamped money journey was to unsubscribe from most of my shopping emails. Even now, there’s only a handful that I subscribe to. It’s less tempting to buy something if you’re not seeing it in your inbox day after day.
When I was a student, I spent way beyond my means so when I moved to Sheffield to do my Masters, I was determined to live more sustainably. I actually unsubscribed from every single shop email and had zero apps on my phone for them either. Going cold turkey meant I only browsed when I actually needed something, such as stocking up on toiletries or replacing an old clothing item.
In fact, the only emails and apps I have are for the shops that I have loyalty cards for and use on a regular basis. Currently, I only have four: Boots, Superdrug, Matalan, and M&S as well as the chain coffee shops. This also applies to following companies on social media!
Try to get cashback or use a coupon/offer
Unless it’s on Amazon, it’s very rare that I buy something without getting cashback or using a coupon! I’ve also got a Chase debit card so get cashback via that as well as TopCashback or Quidco. If I’m eating out, I’ll try to find a coupon. The only category I tend not to is coffee shops. However, most have loyalty schemes and I try to take in a reusable mug more often than not.
Sometimes to get offers, you have to sign up for newsletters. My tip is either to set up a separate email account just for shopping/restaurants or to sign up and just unsubscribe after you’ve used the vouchers. Be aware that some places will send you another voucher after you’ve visited so give it a few days before you unsubscribe.
Always make a list
If you’ve followed me for a while, you’ll know that I love a list. However, when it comes to shopping, I just have two: a food shopping list and a general shopping list. My food shop list is on a magnetic notepad on the fridge. All I do is add items to it during the week as and when I’m running out of them. Some places do offers for loyalty scheme customers so I’ll make a note of them before a food shop too.
My running shopping list is literally just a categorised note on my phone. I’d say my main categories are clothes, beauty/toiletries, and miscellaneous. I’ll jot down items that I think I want as well as where to buy them from. Ideally, I shop quarterly for my toiletries and do a big shop in Superdrug and Boots to stock up. For clothing, it’s more of an ‘as and when’ for me. I try to check Vinted first because I’m addicted before buying from the shops.
Try a shopping ban challenge
I regularly do no-spend months (other than essentials or pre-planned purchases) where I set myself a number of no-spend days (I track my monthly no-spend days in my monthly goals posts). It’s a great way to ensure you do most of your spending on the same few days of the month. In fact, I’ll often try to run errands out of the house on the same day and do some online shopping when I get home.
If you need to be stricter, ban yourself from buying clothes, make-up, takeaway coffee, or whatever your spending vices are. Ban yourself completely for the month or restrict your budget significantly. It’s meant to be a challenge so be tough. You can always edit it next month.
Track your finances
If there’s one thing in this guide to how I’ve learned to spend less money that everyone should do, it’s this. Get yourself a spreadsheet or make one yourself. Break down every spend into categories and track every single penny you spend. You might be ashamed of how much you spend in some categories compared to others. This year, my biggest spends were beauty and one-off spends (mostly the dentist and my tax bill).
If there’s one thing I love, it’s colour-coordination. Every category has a different colour to make it easier to navigate at first glance. At the end of every month, I total each category as well as the overall spend. Then, I’ll reflect on what I’m happy with, what I’m not happy with, and what I need to adjust. I’ve also incorporated a money routine into my weekly reset because I am obsessed with my finances!
Be picky with the subscriptions you have
Many people have every single streaming service under the tree yet watch the same one or two. In fact, I don’t have any anymore, purely because I sponge off others but also watch actual TV and DVDs more. The only subscriptions I have are Duolingo, Spotify, and my phone bill. However, I’m thinking about getting YouTube Premium because I watch something most days and the adverts are driving me crazy.
I’d definitely look into what you use the most. Unless you’re on a yearly plan, you can always resubscribe if you really miss one of them. I used to get the free trials, watch as much as possible on one platform for a couple of months, and then switch to another service. Then again, I’m the person who starts a TV show about 4 years after it’s finished so maybe I’m not one to talk!
Make a budget
The more you’re strapped for cash, the more you need to set up a budget. Like I said earlier, they’re meant to be strict but not completely restrictive. I try to set my budget monthly by looking at my plans for the month first before deciding how much I need in each category. It’s something you’ll need to edit every month because there’s always something to change.
Don’t forget about those bigger, planned spends. Spreading them across multiple months makes it easier in the long run. It just means you need to include them in every monthly budget. Whatever you do, make sure it’s a budget that works for you. It’ll probably take a few months to get used to it but stick with it!
Declutter
When I started my minimalism journey, I could only use the money I made on Vinted/eBay to buy new clothes. I’d say I got rid of about 30% of my wardrobe and have slowly got rid of more every year. It’s a great way to get extra cash, especially if you have some big spending coming up. You can pretty much declutter anything and people will buy it!
My tip is to do it in stages though. It can get quite overwhelming if you decide to do it all in one day/week! Declutter room by room, sell what you need to (or donate it), and then move on to the next room. Don’t buy anything new until you’ve finished your decluttering! Try to live in the minimal space for a while and then add new items in.
Try a capsule wardrobe
One of the best ways I saved money in the first place was by trying out capsule wardrobes. I did a tonne of research, decluttered my wardrobes, and selected around 50 pieces to wear for that season. It’s meant that I’ve gradually been able to replace my favourite but well-worn pieces with quality, rather than the sheer quantity that I used to have.
There are lots of places that say you should only have 33 pieces per capsule but I say it depends. It might depend on your lifestyle, such as workwear and regular clothing. For this, I’d say have two separate capsules, one for work, and one for the rest of the week. Capsule wardrobes are definitely trial and error though so don’t feel disheartened if you don’t get it right the first time.
Find cheaper alternatives for social events
Especially with Christmas coming up, hanging out with friends and family can be an expensive ordeal. In my twenties, I’d buy presents for my friends at Christmas and we’d exchange them over a meal and drinks. That shit got expensive very quickly. Instead, you could skip the presents and just go out for the meal. Go to a chain restaurant, grab a voucher, and it can be a cheap night out.
Alternatively, if you have a large friendship group, Secret Santa is a great way to save cash. Set a budget, pick out a name, and have fun with it. I’d say no more than £20 is a good budget because it’s enough for a great present but you can get creative. The other alternative to how I’ve learned to spend less money is to cut down on the number of friends I have. It’s a simple solution!
Create saving pots
Mini saving goals are much easier than saying you’ll save £500 a month. That’s why I love sinking funds! My main ones tend to be for travel and my tax bill. They’re designed to be for short-term funding. For 2024, why not set up a Christmas saving pot?
Some ideas of how to do it are rounding up your transactions, the 1p challenge, saving £5 a week, and zero-budgeting. There are tons of ways to do it but I’d say the general rule is to save small amounts often, rather than plonking a lump sum in every so often (unless you get a work bonus or win the lottery).
Buy second-hand
It might seem obvious but it’s definitely something I’ve done more of since lockdown. In fact, I got a little addicted to Vinted in 2020! Growing up, I’ll be honest. the thought of buying second-hand clothing was disgusting. I understand that’s a very privileged position to have (even if we weren’t an affluent family) and I often took bin bags full of clothes to the charity shop.
However, the older I’ve got, the more I appreciate sustainability and value. In fact, I search on Vinted for clothes before I even think about buying directly from the retailer. However, I always check prices because some people think they can flog a £35 item for £50 on these second-hand apps!
Phew, that’s everything for my ‘how I’ve learned to spend less money’ blog post. And if you got to the end, well done, and go get a drink! Now, give me a follow on Twitter and Instagram, where I hope to share more content over the next few months.
Please let me know if you enjoyed my guide on how I’ve learned to spend less money, comment below. I do have the domain for a personal finance blog but I’m debating whether or not to just include personal finance content on this blog instead.
