Getting on Top of Saving

Getting your finances back on track can be a challenge, especially when “no-buy” or “low-buy” months can feel overly restrictive and ultimately unsustainable

CREDIT: This is an edited version of an article that originally appeared in Life Hacker

If you’re trying to regain control of your spending, you’ve likely encountered “no-buy months” or “low-buy years” as potential solutions. These challenges involve eliminating all non-essential purchases for a set period, and they may seem like quick fixes. However, they often fail because they don’t address the psychological factors behind spending habits or provide a realistic framework for long-term financial change.

The all-or-nothing mentality that these approaches rely on can quickly lead to frustration, and there’s a strong likelihood that you’ll abandon your financial goals or splurge as soon as the restrictions are lifted.

Instead of resorting to extreme measures, a better approach to building healthier financial habits is moderation. Rather than attempting to cut everything out at once, try focusing on specific areas of your spending that are more easily controlled. By narrowing your focus, you can make a lasting impact without feeling overwhelmed or deprived.

Categorise Spending

One effective strategy is to engage in category-specific spending challenges. Instead of eliminating discretionary spending, target areas where you know you’re overspending, such as dining out, clothing, or entertainment. Identify your highest unnecessary spending category and set a specific, reasonable goal to reduce it. For example, you might choose to halve your restaurant visits for the month. Tracking your progress is key, but it’s important to avoid cutting the category out entirely. This way, you maintain some flexibility, but you still have a clear goal to reduce unnecessary spending.

Determine Spending Values

Another helpful approach is creating a values-based budget, which focuses on aligning your spending with your core values, rather than just cutting back. This method allows you to prioritise what truly matters to you, such as family time, health, or education, while naturally reducing unnecessary expenses. Take some time to reflect on what matters most to you and then allocate more of your budget to those high-value categories. As a result, you’ll reduce spending in areas that don’t align with your values, which will help create a more intentional and fulfilling financial plan.

Try Cash Stuffing

If you struggle with overspending, cash stuffing might be an effective method to curb your habits. With cash stuffing, you divide physical cash into envelopes for specific spending categories, such as groceries, entertainment, or clothing. The key here is that once the money in an envelope is gone, you can’t spend any more in that category for the month.

This system encourages intentional spending, as you decide how much money gets allocated to each category. The physical limitations of cash create built-in discipline, helping you stay within your budget.

By focusing on moderation rather than total restriction, you can develop sustainable, long-term habits that align with your financial goals and personal values. These methods help you regain control of your finances without the extreme pressure of “no-buy” challenges, leading to more lasting and fulfilling financial health.