Are you tired of overspending or being broke at all times? Well, here are some very easy tips to avoid spending money unnecessarily and save up for things you love like a movie date with your loved ones, that beautiful dress you might have seen in stores or a refreshing family vacation.

Steps to stop spending money are as follows:

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  1. Do a Budget Workout

If you are trying to save money then a budget workout can very helpful. You just have to follow the given steps.

  • Make a chart of your net income and figure out the inevitable expenses such as house rent, electricity bill, the salary of the house help, committing charges, important groceries, etc. And calculate your disposable income.
  • This will help you in distinguishing between important expenditure and the unnecessary expenditure you are incurring.
  • Out of your calculated disposable income, set a limit that you would like to save at the end of the month and religiously stick on it.
  1. Follow the Demotivator Rule

Demotivator rule basically means that by analyzing your daily expenses you will try to quit or change some of your daily habits. Make a note of your daily expenses which can be avoided by changing your habits such as cigarettes, water bottles, snacks, etc.

  • This will help you to understand how much money you can save by bringing simple changes in your lifestyle like quitting smoking, carrying your own water bottle whenever stepping out of the house, carrying your own tiffin, etc.
  • Work out your priorities – there are some expenses which you will always have to incur and which are essential as well. So in order to prevent yourself from overspending, set your priorities.
  • Every time you receive your salary, make a note of all the priority expenditures or things which you have wanted to purchase for a very long time. First, spend on your priorities and take wise decisions off the remaining amount.
  • Control your temptations – people usually overspend because of their uncontrolled temptations. So, try to control them.
  • Who doesn’t like going out for movies or eating food at a beautiful café? Try to control your cravings. Inculcate the habit of eating home-cooked food.
  • Spend less on luxuries.
  • Try to adjust to a simple lifestyle.
  • Shift to public transport rather than spending a hefty amount on fuel and wasting your time by being stuck in traffic.
  1. Stick to Cash and Avoid Digital Money

Should you use case or digital money to save money better? Read below to get your answer.

  • Although there is a huge wave for the country to go cashless. But, a cashless economy will always lead to overspending.
  • It’s extremely convenient to swipe your Debit/ Credit Card or use your mobile wallet but in such cases, one cannot analyze how much money he/she is spending and therefore will eventually overspend.
  • In case of paying by the cash, one can physically see the amount of money he/she is spending and eventually keep a check on their expenditure.
  • In the case of a credit card with a huge limit, people usually depend in an uncontrolled manner. They regret it only when the time for praying for the credit card arrives.
  1. Set Short Financial Goals

You cannot expect to change suddenly. So, start by setting short goals.

  • It is very difficult to reduce your expenditure suddenly.
  • Setting small goals helps in doing it.
  • You can begin by cutting expenditure on small things by setting short term goals. For example, you can decide to set his monthly expenditure on food to Rs3000 rather than Rs5000.
  1. Set Saving Goals

You can also start setting saving goals to spend less.

  • Make a list of all the things which you desperately want to purchase.
  • Paste this list on your wall. This will encourage you to save money in order to purchase these things.
  1. Wait Before Making Any Big Purchase

What should you do while making a big purchase? Is it important or not? Can you save some money? To get answers for these questions to wait before making any big purchases.

  • Wait at least three days before making any big decision.
  • For the time you wait, make a serious thought about whether to buy the product or not.
  • Look for other cheaper options for the product.
  • If purchasing the product is not very important then avoid buying it.
  1. Shop with a List

Can shopping solve some of the problems? Well here is the solution.

  • Whenever you go out shopping prepare a shopping list of the things which you need to buy.
  • Try to stick to the list and not get tempted by the variety of products displayed in the store.
  • Before purchasing a product, look at the different alternatives, compare their prices, and look for offers and discounts and the purchase.
  1. Shop During the Sale Season

At the end/beginning of every season, all shops come up with clearance sale. Take advantage of these marketing strategies.

  • Until and unless it is very urgent, purchase clothes only in the sale season.
  • This will help you save a lot of money.
  1. Buy Used Product

Using second-handed goods isn’t that bad of an idea. Is it? Well, not if it is pocket-friendly.

  • Nowadays, there are many websites that give things such as electronics and furniture on rent. Make use of these websites.
  • Try to buy second-handed goods available on several websites.
  • If there is any product which you are not using, then you can use these websites to sell them off.
  1. Other Ways of Saving Money

Start carpooling along with your friends and colleague. This would be good for the environment and would be easy for your pocket as well. Rather than throwing away old newspapers and books, sell them to a raddiwala.

  • Make use of second-hand textbooks or soft copies of textbooks.
  • Try to borrow clothes for a one-day event rather than purchasing them.
  • Cut off on your electricity use. Make sure that your light and fans are off every time you leave your room. Try to avoid house help and start doing the regular household chores on your own.
  • Advertisements are usually very appealing and they attract us towards these products. Try to control your temptations.
  • Keep all your receipts. At the end of the month figure out your expenses. This will also help you in understanding your progress towards saving money. There are many mobile apps that will help you in managing your budget. Make good use of these apps.
  • Be prepared for unforeseeable medical emergencies. Get health insurance. Also, before buying one, compare amongst different health insurance and purchase wisely. If you have a pet then make a budget for its expenses as well. Try to cut down on unnecessary expenditure.


  • Realize the signs of overspending as soon as possible just so that you can start working on them.
  • This transformation will take a lot of time and dedication so remain dedicated. Do not lose hope.
  • Compare your expenditure each month in order to monitor your progress. Keep on trying. You will reach your goal eventually. 
  • Maintain a detailed record of your income, savings, and expenditure.
  • Don’t take too much stress. Enjoy life. You will tackle the art of saving money gradually.
  • Give yourself some time to adjust to the changed lifestyle.
  • Move away from luxurious life, try to live a simple life and start making adjustments.
  • Start finding happiness in small things in life and lower your expectations.

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