May 29, 2022


Accounting + Finance Blog



For some people controlling spending is not a difficult tax. Many do not care about how they spend their money while other persons are struggling to control spending.
If you belong to the last group, know that you are not alone in this struggle and it is possible for you to win the struggle.

Below are suggestions that will help you control your spending, it has worked for many persons including myself and I believe it will work for you. In general, however, self control is needed to successfully apply the below suggestions.

Read also five ways you can protect yourself from unexpected events..

Shopping everyday will only make you spend more. Whenever you go shopping buy all what you need for a week or a month. Buying a few things for the day will only cost you more. But buying in bulk will give you discount for bulk buying. It is advisable to use this advantage as it will save you some money you will use for other activities. Also, you can go for shopping just once in a month, if it is properly planned. However, you may say that it is not possible to buy all what you need for a month probably because of low income. You may be right to some extent but careful planning and used of money will give enable you achieve this.

Give yourself salary. Though you are already receiving salary from where you work or you may be withdrawing from your business to meet expenses. From the salary you received every month or from that money you are withdrawing from your business, give yourself salary. You may give yourself $20 to $40 a month or more. Next, keep this money in your bank. Doing this means that you are setting maximum amount of money you can spend. For example, if your salary is $500 and you pay yourself $50, it means you the maximum amount you can spend is $450.

Use only a bank for your Debit (ATM) card. It is advisable to have a minimum of two bank account. In this instant, you will use one of the bank account for your spending and the other for your savings. Then have only one debit card. You should debit card from the bank you decide to use for your spending. This can also be applied to credit cards. Then, you should set a goal for yourself for the money  you are saving in the second bank. Failure to do this will make you spend up your savings with regrets. To avoid this you need to set a goal. Your goal may be buying a new house, a new car, a set of furniture, an electronic gadget and so on. If your goal is to buy a set of furniture, then you will need to know the current price of the furniture from time to time. Immediately, go to your savings bank to withdraw the cash and used it for that purpose without looking bank.


Have a list of your spending for each day. As you spend cash everyday, do not forget to keep a record or list of it. Do not forget to this. It is very vital for controlling your spending. Also, have a list of budgeted spending. Your can prepare a budgeted spending for a week, a month, three months, six months or a year.  But, to me it is best to keep it simple by budgeting for a month and break it down to four or five weeks and days. Make your your actual spending record or list is handing. This will help you to perform the next three suggestion below. Where ever you are going, endeavour to carry the lists (actual spending list and budgeted spending list with you). Then as you spend for each day write it in your actual spending list.


Analyse your actual spending list. Set a day to analyse your spending list. You can do it in the evenings everyday or particular day of the week, probably on Saturdays or Sundays. Then compare the actual spending list and the budgeted spending list. Look at your pitfalls. Your pitfalls is where you spend more than you budgeted. If you have budgeted to spend $5 on an item and you end up spend $6 then the difference is your pitfall. Next, think about why the pitfall exist. It is because of not having good bargaining power? Have price of that item goes up? Is your budgeted spending budget too low that makes it not to be the same with the actual spending? Look again you will find your strenght. This is were your actual spending is less than the budgeted spending. The ask a series of questions. How do I succeed in making such gains? Have I understate the price of the item? Can I maintain this strenght? You may think that having such strenght do not need further analysis. You are wrong if you think that way measuring your strenght will enable you repeat such strenght next time and will also give you more rooms for improvement. Finally, look for a balanced actual spending and budgeted spending list. That is when you budget $30 on an item and you spend the exact amount. Then make similar analysis.

Think of ways to improve. This is the final step. After analysing your budget spending and actual spending, it is beneficial for you to think of ways to improve actual spending. Probably, you may need to write down the ways you need to improve on controlling your spending and ensure that you follow it strictly.

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