How Much Does a Spending Freeze Actually Help?

Looking for ways to save money and stay on a budget? It’s challenging, but it’s for the greater good of your finances. Have you considered going on a spending freeze, or committing to not spending any disposable income for a set amount of time, to help curb frivolous spending? Here are some ways it could help your financial future.

Boosts Savings Account

You have a routine that begins each morning with a venti coffee at Starbucks. You spend lunch with coworkers at your favorite Mexican restaurant. Then it’s take-home from Applebee’s for the family. Whether you eat out each day or just a few days a week, the funds can quickly deplete.

A spending freeze can help put that money back into your savings account. Substitute going out to eat for buying groceries on sale. Meal prep for the week to save even more.

Allows for Paying off Credit Card Debt Faster

Are you a frequent QVC shopper? Who can resist the jewelry, clothing and electronics at such unbeatable prices? You can. Instead of spending on extra luxury items, use those funds to pay down credit card debt. This can help boost your FICO and VantageScore numbers, giving your more buying power and cheaper rates when it comes to big purchases like a mortgage or car loan.

Easier to Plan for a Big Purchase

You’ll never have the funds to purchase a new camper or piece of lawn equipment if you’re blowing all your potential savings on extras you don’t need. The money you spend on a weekend out or an impulse buy at your favorite boutique can quickly add up. Put it toward a big purchase to get better financing terms for your dream RV. Better yet, pay for it in cash.

Reduce Clutter and Waste

Unnecessary spending on designer clothes, artwork or even gambling can give you a temporary mental boost. Sure, it’s fun to get out and forget about life for a while, but the debt will still be there, and bill collectors will still be calling the next day. Learn to stay home on the weekends. This means more money to pay off old debt and less clutter from impulse buys at the flea market.

Any time you can avoid spending your hard-earned money and keep it in the bank collecting interest, the better. Be smart about your spending. Always work to pay down debt and save as much as possible. This can help to build your wealth and boost your future buying power.

~Here’s to Your Success!