Posted by Thomas G Kinsella, ATP

Tips On How to Improve Your Spending Habits

Tips On How to Improve Your Spending Habits

Developing a positive, smart spending habit takes a conscious effort and discipline. It is worth stating that a good spending habit comes with many benefits, including financial stability, increased savings, improved quality of life, and lots more. 

Most times, financial problems are the aftermath of poor spending habits that have accumulated over time. You must recognize this problem and regain control of your spending habits as quickly as possible. 

Furthermore, improving your spending habit can help you maintain a good credit score and keep you out of debt. Apart from that, it can also help you obtain the loan needed to acquire a property or a vehicle. 

The benefits of maintaining a good spending habit are endless; you develop a better spending habit and improve the quality of your life by following the simple tips explained below:


  • Minimize Impulse Buying

Buying anything that makes you feel good, not minding its importance or financial implication, is known as impulse buying. Though impulse buying makes buyers happy, it usually takes a toll on their finances. 

Buying on impulse can result in a bad spending habit if it is unchecked. You can spend hundreds of dollars each month and deplete your savings account if you don't gain control over this habit. It could also increase your chances of running bankrupt. 

How do you control impulse spending? This is quite simple; you should not rush into buying anything you think that you don't need. If you plan on buying a product, you should wait for at least one week; you should go ahead and purchase it if you still believe that the product will benefit you. 

Furthermore, you should not go shopping without making adequate plans. Take time to list out everything you need and stick to it.


  • Set a Budget 

One of the essential steps you need to take to improve your spending habit is to cultivate the habit of setting and sticking to a monthly budget. Setting a budget involves setting a list of your proposed expenses.  In other words, it has to do with writing down the things you intend to buy while considering your income. 

The best way to monitor your monthly spending is to set a budget. It enables you to know when you are overspending. For instance, spending excessive amounts to buy food instead of saving money by preparing it at home. 

  • Minimize the Use of Credit Cards 

Credit cards come in handy, especially during an emergency. Furthermore, it also improves your credit score when you pay off your credit without wasting time. 

However, you could accumulate credit card debt when you use it excessively. In such a case, the debt can be overwhelming, and it might take months to clear. It is advisable to avoid charging amounts that might take several months to settle. 

Furthermore, it is worth stating that most credit cards charge interest monthly, meaning that you will be paying more than your credit card company for more than you spent every month. You can reduce credit card purchases by using your savings account for larger purchases, such as a fridge, a trip, a new TV set, among others. 

  • Focus on Your Goal 

Another way to improve your spending habit is to set a financial goal. Getting rid of bad spending habits is beneficial for the present as well as the future. Furthermore, it can also help you to withstand unforeseen financial changes. Eliminating impulsive spending and focusing on your financial goal will enable you to prepare well for the future by having more savings.



You can improve the quality of life and prepare adequately for your future if you have good spending habits. As explained above, avoid impulsive buying and minimize the use of credit cards as much as possible. 

Cultivate the habit of setting a monthly budget and stick to it; this way, you can be more prudent in your spending, avoid debt, and save for the future.



Thomas G Kinsella, ATP
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