Having a store credit card
It happens to the best of us: You go clothes shopping and you leave the store with one extra credit card in your wallet thanks to the allure of 15 per cent off the day’s purchases. And so begins the slippery slope of regular, enticing email deals. “There’s no reason to have a card with a store that sends you ‘come shop, come shop’ messages because it encourages impulse buys,” says Tayne. “Some of my clients are reluctant to give up their credit cards because they get really good deals, but the thing is, you’re enticed to go into that store and make that purchase that you normally wouldn’t.”
Cutting out categories
When you’re trying to save money, it’s common to say “I can’t do brunch this month,” or “no lattes this week.” Clayman suggests to instead focus on a monetary amount rather than cut out a specific category. “This is where I see budgeting fail a lot, because people end up cutting out things that give them pleasure. Instead, if you’re trying to find $100 to put toward savings, and you know you spend $200 a month on meals with friends, just say that you’re going to bring down your food costs by $100 instead. Reduce the habit, don’t eliminate it, and you’ll be more likely to stick with it.”
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Not getting to the root of your spending
The more you’re aware of how you use money for emotional reasons, the more you’ll be able to save, says Clayman. “If, for example, you had a rough day at work and are craving companionship to feel replenished, it’s easy to ask a friend for dinner,” she says. “Recognise instead that you have a social need, and look for something once in a while that doesn’t cost money but still fulfils your need for companionship, like taking a walk with your friend. Determining the underlying need is the first step toward making a more sustainable plan to satisfy that need.”
