38% of Americans promise to spend less by 2022. Here’s how

38% of Americans promise to spend less by 2022. Here’s how

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Spending less money can be your ticket to achieving a number of financial goals.

Key points

  • A recent survey shows that many consumers want to lower their consumption in the new year.
  • By sticking to a budget, setting priorities and being wiser about online shopping, you can also lower your spending.

It is common to make financial decisions when a new year begins and a common one for 2022 is to lower spending. In a recent Principal survey, 38% of respondents said it is something they strive to spend less money on, and with good reason.

The less money you spend, the easier it will be to achieve different goals, whether it’s saving up to buy a home or completing your emergency fund. If you need some tips on how to cut down on your spending, here are some relatively easy ones to start with.

1. Follow a budget

Sticking to a budget will make it easier to limit your spending because you have preset guidelines to follow. Your budget should take into account your different expense categories and what they cost you. It should also be configured to ensure that you do not spend more in a given month than what your payslip gives you.

By setting a budget, you will have a clear sense of how much you can spend on everything from gas to groceries to rent. And that budget might also make it easier for you to identify categories you can cut down on.

2. Set priorities (and actually write them down)

It is normal to have some non-essential things you spend money on every month, such as takeaway meals, streaming services, and social events. However, if your goal is to cut back on your expenses, you may need to set some priorities.

Think about the unnecessary things you spend on regularly and decide what is most important to you. You can choose to cut down on takeaway meals if it means you have to see your friends regularly and participate in various activities. Then write these priorities in writing to help yourself keep track of the track.

3. Do not buy out of boredom

Unfortunately, it looks like we’re heading into another pandemic winter, and that could easily set the stage for boredom on shopping – spending hours browsing online because you’m stuck at home with nowhere to go. But just as much as shopping can help fill some of your empty weekend or evening hours, it can also be a source of unnecessary expense.

A better bid? Find a cheap hobby instead of shopping. An even better move? Turn your hobby into a side race. That way, you will not only avoid expenses but also increase your income.

4. Do not store credit card information on your electronic devices

Storing credit card information on your phone, tablet or laptop can make it quick and convenient to buy things online. It can do that too also easy to complete those purchases and that is a bad thing when it comes to impulse buying.

If you intend to save more money in the new year, do not store your credit card information on your devices. That way, if you are lying in bed surfing on your tablet, just having to get up and find your credit card may be enough to prevent you from buying the cute sweater or comfortable workout jacket you want to own, but technically seen not needed.

Spending less money is often about adjusting your mindset. These measures can be your ticket to lower your spending in 2022 – and celebrate the financial goals you achieve because of it.

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