The money you spend is money that can’t be used to pay off debt or increase savings, so it
stands to reason that spending less is one of the most important steps you can take to
improve your overall financial situation. Here are five simple changes you can make to help
reduce your spending in 2016.
1. No more impulse purchases: Those last-minute, unnecessary impulse purchases
should come to an end in 2016. Stick only to essential items and deliberate
purchases that you’ve given a lot of thought to and really want.
2. Limit your dinners and lunches out: Food can be a huge money waster, especially
when you’re buying highly marked-up restaurant foods for meals that you could
easily—and cheaply—prepare yourself.
3. Give yourself a waiting period for all nonessential purchases: When you decide you
want to buy something that’s not essential (in other words, you don’t need it to
survive and it isn’t replacing something that is unusable), you shouldn’t just
immediately allow yourself to get it. Instead, you should put a waiting period in
place that gives you time to cool off and really evaluate the necessity of the
4. No more gadget upgrades: There’s no need to upgrade your gadgets every time a
new generation is released. Instead, upgrade your gadgets only when they
legitimately need to be replaced because they are no longer functional in the ways
you need them to be.
5. Pay extra on your mortgage, auto loan or other debts. One great way to reduce your
overall spending is to minimize the amount you spend on interest for your various
loans, credit cards and mortgages. While this will increase your outflow in the short
term, it can make a significant difference in overall lifetime spending.
Your financial situation can’t improve unless you change what you’re doing. Stop settling for
less and make 2016 the year that you finally implement those changes so you can become
more independent, secure and financially successful.