When financial planners are asked about how to save more money, one suggestion that is often repeated is to declare a moratorium on spending.
Think of it like fasting. When we fast, we reset our internal food sensor. After a fast, we are more aware of the food we choose, and we tend not to automatically reach for junk food or to overeat.
Similarly, when we cut ourselves off from spending, we reset our internal money sensor.
It’s simple…but probably not easy. Here’s how to do a “spending fast:”
Commit to spending absolutely no money for one day per month, other than absolutely necessary expenses, such as gas or a bill that’s due.
When you have accomplished that goal, try stretching to two days. See how many days in a row you can go.
You’ll discover how much money you spend without thinking, and you’ll break the habit of reaching for your wallet on impulse. You may also find you can do without a lot of things you thought you needed to buy.