How to Stop Bad Spending Habits: 7 Tips for Breaking the Cycle

Inside: Use these tips to stop bad spending habits so you can save more money.

In a world where we’re constantly bombarded with advertisements for restaurants, clothes, vacations, cars, and virtually everything else we could possibly buy, it’s easy to fall into bad spending habits.

Whether you struggle with impulse shopping, love a little retail therapy after a bad day, or simply don’t keep track of how much you’re actually spending, bad spending habits can chip away at your financial security – and your peace of mind. 

The good news? You can change. By taking steps to break the cycle, you can stop bad spending habits and improve your financial well-being. 

7 Tips to Stop Bad Spending Habits

Ready to stop bad spending habits so you can save more money? Here are seven tips to help.

Tip #1: Create a budget – and stick to it.

It might sound basic, but it’s true. The biggest issue most overspenders struggle with is not creating a budget that they stick to.

A budget is essentially a plan – a roadmap that tells you how you can (and more importantly, how you can’t) spend your money. 

If you take a look at your monthly expenses, there are some things, like your rent, that you probably don’t have much flexibility on. Some expenses, like streaming services or dinners at restaurants, can be curbed or canceled altogether.

You may have some areas where you can simplify and save, like your car insurance or your cell phone bill, that can be lowered by shopping around. 

By auditing your expenses, understanding where you’re overspending, cutting back on the areas where you can make a meaningful difference, and setting specific limits to keep your habits in check, you can significantly cut down on the amount of cash you’re spending each month.

And once that budget has been established? Consider it unchangeable. If you’ve given yourself a $150 weekly grocery budget, that’s what you’re working with.

If you want to grab dinner with friends but you’ve already spent your monthly restaurant allocation, suggest getting together at someone’s house for a potluck-style meal instead. 

Tip #2: Set a savings goal that actually motivates you.

A great way to curb spending and start saving is to give yourself something to save toward – a meaningful goal that you can realistically achieve. 

Instead of just stashing your extra cash away in a miscellaneous savings account, get intentional about what you’re saving for and why. It’s a good idea to first focus on saving enough to cover three months of your family’s expenses for a sense of security.

Then maybe you’d like to save up for a dream vacation to Paris or Rome so you can make unforgettable memories. Or maybe you’re dying to replace your couch because you just can’t stand the one you have – and the one you’re looking at would be perfect for your space.

Keep your specific financial goals top of mind. Print off a picture of your savings goal and tape it to the front of your credit or debit card. Or, put it on your mirror so that you see it every time you get ready in the morning. 

Once you know what you’re saving for and why, curbing bad spending habits becomes easier because you’ve got something you truly want to work toward.

Every dollar you spend outside of your budget is a dollar that could’ve gone toward helping you achieve your goals a little bit faster – and for many, that’s the motivation they need to keep spending under control.

Tip #3: Don’t step into a store without a list.

For many of us, it’s all too easy to wander into the grocery store or Target and walk out with all kinds of things we don’t need.

Even if you limit yourself to one or two impulse buys, you’re still spending money you didn’t intend to on things you don’t need. 

Give yourself a little discipline by creating a shopping list ahead of time. It doesn’t matter if it’s a handwritten list on a piece of paper or something you type up in your favorite note-taking app.

Even if you’re only running into the store for one or two things, a list can help to be more intentional with shopping to keep you focused on what you came for and deter you from things you might be otherwise tempted to throw into your cart. 

Tip #4: Place pick-up orders.

If you just can’t resist the temptation to add a few extra things to your cart when you shop, consider placing a pick-up order instead. 

From grocery chains like Kroger to all-in-one shops like Target or Walmart, many stores now offer this service for free. You simply make your shopping list, select the items you need in the store’s app, choose a designated time to pick it up – and that’s it.

Most of the time, you don’t even have to leave your car. Avoiding picking up extra items will help decrease money drains occurring in your accounts.

Tip #5: Don’t auto-populate payment information.

Shopping online has become easier than ever.

Thanks to apps and the ability to create an account for your favorite online stores, you can literally make a purchase with the click of a button. Unfortunately, that makes it way too easy to make impulse purchases and spend money.

Cut yourself off from one-click shopping by deleting your credit card information from those apps. It might sound simple, but it’s effective.

Grabbing your physical card out of your wallet and keying in your account number gives you a few minutes to reconsider your purchase – and convince yourself to save it for another day. 

Tip #6: Learn how to meal prep.

One thing frugal people do to save money is keep a close eye on how much they spend on food.

Most of us are willing to pay for convenience – but we don’t realize how much we’re paying for it. 

Take a look at how much money you’re spending each month on food you didn’t cook. That macchiato at Starbucks, those after-work tacos, dinner with a friend on the weekend… it adds up. Fast.

But it’s a hard habit to break. When you don’t have a ton of spare time or energy – or the desire to cook – the thought of grabbing something to-go is incredibly tempting.

That’s where meal prep comes into play. You can make grabbing a bite to eat at home just as convenient as getting something from your favorite restaurant with a little effort.

By dedicating an hour or two on the weekend to chopping veggies, washing fruit, and whipping up a couple of meals that you can revisit throughout the week, you can simplify your life and save yourself a ton of time – and money. 

The trick? Make sure you’re meal prepping meals that you’re actually excited to eat. Otherwise, you’ll take one long look at the food in your fridge… and phone in an order at your favorite take-out restaurant. 

Tip #7: Save instead of financing.

To stop bad spending habits, it’s important to understand financial basics including how interest rates work.

Taking on debt and buying an item you don’t have the money for yet will cost you much more in the long run. It’s also easy for these debts to get out of hand and to end up in a financial ditch that’s very difficult to dig yourself out of.

To stop this bad spending habit, in every situation where it’s possible, wait to purchase until you’ve saved enough money. And if you do take on debt for something like college or a home, make sure to read the fine print so that you have a clear understanding of what you’re agreeing to and how much it will actually cost you.

What tips do you have for stopping bad spending habits? Leave a comment and let me know!

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