Tips to Save Money & Quit Spending More Than You Make

Many people find it tough to not keep up with those around them when it comes to spending habits.  If you are a spender, these tips to save money and quit spending more money than you make are vital to your financial health.

The only way to pay off debt or get ahead financially is to stop spending outside your means.

Many people don’t even realize how far outside their means they have been spending until they look at it on paper, and that’s where these tips will make it easier to manage.

It can be tough looking at your bank account and seeing a negative balance, but in order to save money it is important that you do it now before you cause any more damage.

Tips To Save Money & Quit Spending More Money Than You Make

Struggling to save money? Need help to finally gain control of your finances? Check out these tips to save money to quit spending more than you make. #1 will make a HUGE difference. Click now to find out how you can start building your savings account...

Get to know your budget. 

You can’t really understand your spending habits until you get to know your budget.  If you don’t have a budget setup, it is time to do so now.

You can use my Yearly Household Budget to help you get started.

A budget is very simply a listing of your income and expenses for each month.  If you are spending more money than you make, it is important to figure out what areas are the cause for financial problems.

You most likely have a few basic bills that must be covered, but that usually isn’t where your money is going.

Those little expenses are the ones that add up and keep you spending outside your budget.

Take the time to go over all of your necessary bills in your budget, then look closely at the items you are spending money outside of necessities.

This means not only gathering up your bills, but also those receipts and debit card expenses for things like the gas station, fast food, coffee shop, or even your regular trips to a favorite thrift shop.

For most who are spending more money than they make, the bulk of that expense comes from those “little” purchases throughout the month that add up fast to a big amount of money.

Once you can see where your money is going, it is much easier to stop spending so freely.

If you are still unsure, check out these 5 expenses you can cut, even though you think you can’t.

Use the envelope method.

This is one of the best tips to save money. Dave Ramsey made this method popular, and it is one of the best tips to quit spending more money than you make.

At each pay period, instead of using your debit card for expenses, designate envelopes for each of your bills and place cash into those envelopes.

When the amount in the envelope is gone, you cannot spend any more.  This works especially well for those who struggle with impulse purchases.

Break down your envelopes by basic bills and extras. Categories you may consider having are listed below.

  • Housing expenses: Rent or mortgage, insurance, and repairs
  • Utility expenses: Water, electricity, gas, and garbage pickup
  • Transportation expenses: Vehicle payment, insurance, roadside assistance, gas, and repairs
  • Household expenses: Groceries, toiletries, and household repairs
  • Medical expenses: Insurance (health, dental, vision, life), prescription costs, co-pays, and medical equipment
  • Childcare expenses: Daycare, after school care, and babysitter or nanny
  • Entertainment expenses: Satellite, cable, streaming services, magazine subscriptions, date nights, movie nights, amusement park passes, and similar
  • Clothing expenses: School or work uniforms and basic wardrobe necessities for each season for each family member
  • Savings accounts: Emergency fund, vacation fund, and retirement fund
  • Miscellaneous expenses: Eating out, extracurricular sports, private school tuition, and girls night out

These simple envelopes can be designated on your budget and the monthly allowance placed into each.

When that money is gone, you cannot spend further.  While some expenses fluctuate month to month like utilities and clothing expenses, most should be easy to account for on a regular basis.

Read more about the envelop system here.

Never pay full price. 

If you are a spender, then you may already know how to bargain shop, but it is key to staying in budget and living within your means.

Never pay full price for anything if at all possible.

This is one of the best methods to continue having the things you like, but stay within your income allowances.

  • Use coupons and sales when making grocery or household purchases
  • Shop sale foods and never pay full price for out of season items. Stock up during seasonal sales for future use.
  • Utilize savings apps and websites for finding great deals and locating coupons, sales, and coupon codes
  • Utilize rewards programs at all stores you frequent. Grocery stores, convenience stores, restaurants, and even retail clothing stores all have great email or card reward systems
  • Split meals at restaurants to save money
  • Shop online and look at prices on various websites before finding the best deal. Price match for a better or closer location when possible.
  • Buy in bulk when pricing is better overall for a product.
  • Invest in a club store membership for better savings on regular household items, but do a price check ahead of time to make sure the savings are more than the cost of the membership.
  • Buy used vehicles instead of brand new, and look for extended warranties.
  • Shop around for better savings account options for higher interest earned
  • Call any services you pay for and ask for discounts or alternate plans to lower your monthly expense

Find someone to hold you accountable.

One of the best choices for you to quit spending more money than you make is to find someone who will hold you accountable.

This is often a tough pill to swallow, but can be a necessity. Many couples are made up of one saver and one spender.

This works well to have the spouse hold you accountable, but if you are both spenders it may be best to seek another couple or friend who can help by regularly asking about your spending and savings habits.

You may also find that a financial advisor, accountant, or even a financial class could be highly beneficial to your spending habits.

By talking to an objective party outside your situation you may become more aware of the problem areas and allow them to hold you accountable.

Stop using credit.

This can be tough for many to overcome, but the credit card habit can be a crutch that leaves many feeling like they are struggling to catch up.  While some things may be a long way off, like paying off your home or car, it is easy to put the credit cards down right away.

This one hurts the most, but is one of the most important things to help you stop spending more money than you make.

Credit gives you a false feeling of wealth and can quickly snowball into a much larger debt than you anticipate.

If you are struggling with your poor spending habits, these tips to save money and quit spending more money than you make are a great beginning.

It is hard to not want to buy all the great things available, but to secure a solid financial future you must stop spending outside your means and focus on savings.

Do you have any other tips to save money?

Struggling to save money? Need help to finally gain control of your finances? Check out these tips to save money to quit spending more than you make. #1 will make a HUGE difference. Click now to find out how you can start building your savings account...

This Post Has 12 Comments

  1. Thanks for such an excellent idea of saving, Actually I am one of them who doesn’t have a budget setup. This post will surely help me for budget setup. I have my own very good experience of money saving coupons. I have a list of websites where one can get a money saving voucher which is “Voucher Box, ” “Voucher Bin”, “Dealslands”, “360 Voucher Codes”, “Voucher shops”

  2. Great article! Other tips to save money: Boost discipline by active avoidance of things that make you want to waste money. That was from Daniel Goleman’s book, “Focus.”

  3. I would love it if there was a ‘print’ button so I could save the article as a pdf to refer to offline for years to come.

  4. Thank you so much for sharing this valuable ideas and coupons! I ought to learn more about saving money and stop spending it on stuff I don’t need.

  5. Finding someone to hold you accountable is a great way to get a handle on your finances. It has to be someone you respect and who you’ll allow to give you feedback.

  6. Dave Ramsey talks about personal finance being 20% finance and 80% controlling the person in the mirror. He is so right. In my case it’s a matter of changing years of bad habits.

  7. I used an envelope system for a while to claw back from £900 of debt. Basically you write on the back of the envelope 4 rows and 3 columns. Then you have 4 weeks of the month for the rows and in the colums you pencil in how much you can afford to spend (eg 50 for groceries, 40 for fuel, and 10 for odds and ends and treats, per week).so you limit yourself to £100 a week. And when u but something u write on the envelope and subtract it from ur total. You can take spare cash from one column and use it in a different column but you cant move money between rows. Any receipts you get go in the envelope then at the end of the month u seal up the envelope

  8. Every person want to save money and the above mentioned tips will sure help people to save more. As you mentioned bulk buying and online shopping is really helpful to spend less because it provide facility of various deals, coupons, vouchers and many more.

    There are so many websites available which provide best deals and offers also. Thank You so much for sharing this detailed tips. It’s worth reading and now more about it.

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