12 Good Spending Habits That Will Save You Money

Creating good spending habits is essential when it comes to saving money, budgeting, and having a good relationship with your finances overall. 

In order to create those good spending habits you first should find the bad spending habits you have and try to replace them.

Here are four examples of bad spending habits:

1. Impulse buying

Have you ever found yourself buying things even if you didn’t plan to?

It can be as small as grabbing a pair of socks in the checkout line that wasn’t on your list of things to buy. Or as big as walking into a jewelry store and buying a new bracelet you never needed. Or even worse buying a new car just because you felt like buying it at that moment. 

I remember how my husband and I went for a trip to Seattle (back then we were living in South Korea) and bought two jerseys on our way to a baseball game. One jersey was something around $200. I regretted it maybe 3 times after we did it because well, we didn’t plan it and it wasn’t something that we needed. 

So if a purchase is not planned for in your budget ahead of time it’s called impulse buying.

Did you know that over 90% of people who shop today make impulse purchases? That’s crazy stats! 

2. Not tracking your spending

Another bad spending habit that we all should break is not tracking our spending. 

I know it can be very scary to realize that you’re spending irresponsibly even if you think you’re a responsible person. I know, the truth hurts!

Even if you’re wealthy, it’s essential to know where your money’s going. 

3. Buying things just because they’re on sale

I used to struggle with this one a lot and who knows how much money I spent on things I didn’t need. But there was a flash sale, so… I guess I just bought it!

Now I’m trying to be more mindful and think if I need it before this excitement of getting sale deals hits me haha.

4. Eating out regularly

Eating out almost every day is another bad spending habit that doesn’t let us save money as fast as we would love to. 

That’s why meal planning is essential when you’re trying to save up. Why I’m saying that it’s that important is because we eat every single day.

And even if it looks like it’s not a big amount of money when you order a large pizza, however, when it adds up, you will be slightly shocked at how much you spent. 

Sticking to a meal plan can help you cut your food spending and save money 3X faster, moreover, you will have a healthier body!

Grab this amazing 14-day meal plan free trial. It’s only $5 a month and you get meal plans sent straight to you along with the exact shopping list you need to create the meals. The meals are easy to make and are affordable.

So here are 12 good spending habits that will save you money.

1. Setting short-term and long-term goals 

Saving money makes a lot more sense when you know what you’re saving for. 

Writing down your short-term and long-term goals will put your spending in perspective every time you want to hand over your cash or swipe your card. 

Here are the Baby Steps to give you a good target to hit this year.

2. Writing down your needs and wants 

Do you need this new bag? Or do you just want it because well, you don’t have a bag in this color?

If you need it and it fits into your budget, go ahead and buy it! Don’t get me wrong, I love good purses. But if ‘this bag’ is just something you want and you know that it will affect your financial situation badly, think several times if you need to make this purchase. 

That’s why I like to write down things that I need to buy, so whenever I’m in the store I don’t overspend because of “Oh my god, look at this cute scarf! Oh..$400, well… I think I needed a new scarf…” (I was trying to be sarcastic but realized how much it sounds like me lol)

Okay, distinguishing your “needs” and “wants” can help you build good spending habits. 

3. Having a plan for your money – learning how to budget 

Having a plan for your money is one of the most important spending habits to create. If you don’t have a monthly budget you won’t know where your money went! 

So many people live on more than they make using credit cards to cover the difference. But If you spend less than what you make and save the rest for a rainy day, you will be doing great. 

Whether you want to pay off your debt, your student loan, or save up for your dream vacation, learning how to budget and make it your lifestyle will help you achieve your goals faster. 

Having a budget doesn’t mean that you have to live poor. No, you still buy things that you need and make you happy. Having a budget means you’re in control and you know where exactly your money goes. 

There’s a lot of different ways and budgeting strategies. Here’s one called The Highlighter Budgeting Method that makes it fun and easy to control your spending. 

Also, grab my Monthly Budget Worksheet to create a realistic budget, which is very important and I think everybody needs to face it sooner or later.

You can check out my Financial Planner Bundle I made.

It’s an instant download and it has 32 pages including:

1. Cover Page
2. Vacation Fund Page (1 page)
3. Bill Pay Checklist – Seasonal Theme (12 pages)
4. Expense Tracker (5 pages)
5. Monthly Budget (5 pages)
6. Debt Thermometer (1 page)
7. Debt Payment Tracker (1 page)
8. No-Spend month (1 page)
9. Savings Tracker (1 page)
10. Emergency Fund (1 page)
11. Cash envelopes (3 pages)

Click here to get it!

4. Using cash

If you’re wondering why you should use cash instead of credit cards most of the time, here’s my answer.

It makes it easier to overspend when you use credit cards psychologically. You just swipe the card and get a new TV or clothes. However, it’s much harder for us, human beings, to let go of our hard-earned cash.  

Try to stick to cash most of the time and you will notice that you spend less unless you’re sure you can use credit cards responsibly, take advantage of the cashback rewards!

There’s an amazing cash-envelope budgeting system, that helps you control your money and shows crazy results with saving money and not overspending. 

You can try it out. I also made some freebies for you!

1. Print the templates out (I love using colored paper)
2. Cut along the solid lines
3. Fold
4. Glue your envelopes together

5. Researching before you shop

Researching, before buying things like electronics, is a good spending habit that a lot of people sometimes neglect.

Do some research, compare prices, brands, and pick the quality one. Remember that when you have more information on the table you can make better decisions. 

I also check the reviews, to see what people who bought and used it say. If it’s practical or not, if it’s worth the money. Of course, it’s always up to me, but I want to consider everything and see my options before I make a big purchase. 

6. Shopping with a list

Having a shopping list with you is another good spending habit everybody should build. 

Not only does it help you distinguish your wants and needs, but it also helps you save money, time, and stay more mindful of your food choices to achieve your goals. 

Take a quick inventory of foods and supplies and create a shopping list before you go to the store. 

7. Setting a 24-hour rule

Whenever I want to buy some clothing, electronics, household items, and more, I usually wait 24 hours before I make a purchase.

And you know what?

It saved me hundreds of dollars, that’s why I highly recommend that you set a 24-hour rule and see if you need those items.

It helps you avoid unnecessary spending and keeps your budget on track.

8. Avoiding shopping for groceries when you’re hungry

Avoiding grocery shopping when you’re hungry is essential! Unless you want to end up with a cart full of splurge purchases on food. 

By the way, it’s scientifically proven that to hungry shoppers, high-calorie foods may be more tempting than usual.

I know sometimes it’s impossible when you simply don’t have other time for doing groceries. 

But try to at least eat some snacks before you come to the grocery store, so you don’t feel tempted to put everything in your cart.

It should be on your list of good spending habits as it saves you money, helps you stay within your budget, and avoid grabbing junk food that your body doesn’t need.

9. Unsubscribing from stores’ newsletters

Checking and unsubscribing from stores’ newsletters from time to time sounds like a good idea if you don’t want to get tempted and buy things that you don’t need. 

Marketers are smart people and they know how to get you buying even if you didn’t plan to. 

10. Using cash-back sites and apps 

If you decide to shop online, at least, don’t forget about some great cash-back websites like Rakuten, BeFrugal, or Wikibuy. 

I wrote a whole post about the best cash-back websites and it’s a crime not to use them when you’re trying to save money. 

11. Returning when possible

Returning when possible is a great idea and it should also be on your list of good spending habits to build. 

Of course, you can’t make a return if you’ve already worn, washed, or opened the item from the package. But if there are some things you’ve bought and you don’t need them or realize that the purchase was a mistake that doesn’t fit into your budget, return!

12. Creating a guilt-free ‘allowance’ for yourself

Spending money is not a bad thing I love it and I think it should be fun! 

Being intentional with your money, that’s what I’m talking about.

So, look at your budget and create a guilt-free ‘allowance’ for yourself, where you set aside a chunk of money at the beginning of each month and have fun!

I think it’s a great way to avoid being tempted and overspend when you give yourself that kind of ‘allowance’. 

Well, here I gave you 4 examples of bad spending habits and more importantly 12 examples of good spending habits to create. 

If you enjoyed pin it or share because sharing is caring! 

Now it’s your turn: What bad and good spending habits do you have? Are you trying to work on them? I am truly curious, so comment down below! 

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