There are so many temptations we come across every day, with more reasons to spend our hard earned cash. It can be difficult to avoid these temptations, especially when with colleagues or friends and when peer pressure begins to set in. Not just that, but the usual ‘early morning Starbucks’ or ‘lunchtime treat’ can become a routine, and you stop questioning your spending behaviour and take it as the norm. There are many spending pitfalls to avoid on a daily basis. Here, we look at just a few and how to avoid them!

Spending on credit cards

Because it is so easy to spend money on a credit or debit card, we can forget we are actually exchanging cash when we make a purchase. With the rise of ‘contactless payments’ we simply swipe our cards and it doesn’t feel like any damage has been done. This is unfortunate, because all this spending soon stacks up. So, a good idea is to physically write down everything you have spent that day. Keep a little book with you, if it helps. Then, as you write down the purchases, you can see the extent of your spending. All those little buys add up. You might also want to draw out cash and say that this will last you the week – only pay with this cash so you can physically see what you’re parting with.

Impulsive spending and predictable patterns

There’s probably a behaviour pattern to your spending. Wonga’s post on millennial spending says that payday spending splurges are a top habit for younger people (born between 1980 and 2000). So, for instance, if you find that as soon as your salary hits your account you go on a spending spree with a colleague, this can seriously impact your finances for the rest of the month. Consider these patterns and try and cut down on the temptations to behave this way. If you know you’ll always buy something when you pass a certain shop, avoid going past that shop altogether. Go the long way round to avoid it, if you have to!

Feeling the need to say yes to everything

No one wants to let anyone down, so if you’re invited out for a meal out, or a trip to the cinema, or a drink down the pub, you’re likely to want to say yes. It’s important that you think carefully before you say yes to everything, though. You may discover that by saying no to a few things, you’ll be able to cut down on your monthly spending. Psyche Central talks about how to say no effectively. They say that you should be simple with your responses. Use phrases such as “Thanks for coming to me but I’m afraid it’s not convenient right now” or “I’m sorry but I can’t help this evening.” Also, try and compromise if you can. Suggest ways forward to suit both of you. Avoid compromising if you really want or need to say no. You should also avoid feeling guilty for saying no.

Never questioning quote renewals

Energy bills, insurances, new rental agreements – whatever it is, don’t just accept the price. Always question it, compare the price if you can with other providers for a like for like service, and call the company to speak to them about it. You never know, you might reduce your price and save some money.