38% of Americans Pledge to Spend Less in 2022. Here's How
Spending less money could be your ticket to meeting a host of financial goals.
- A recent survey shows that many consumers want to lower their spending in the new year.
- By sticking to a budget, setting priorities, and being savvy about online purchases, you could lower your spending, too.
It's common to make financial resolutions as a new year begins, and a common one for 2022 is lowering spending. In a recent Principal survey, 38% of respondents said that spending less money is something they're aspiring to do, and for good reason.
The less money you spend, the easier it'll be to meet different objectives, whether it's saving up to buy a home or completing your emergency fund. If you need some tips on how to slash your spending, here are some relatively easy ones to start with.
1. Follow a budget
Sticking to a budget will make it easier to curb your spending because you'll have preset guidelines to follow. Your budget should account for your various expense categories and what they cost you. It should also be set up to ensure you're not spending more in any given month than what your paycheck gives you.
By setting a budget, you'll have a clear sense as to how much you can spend on everything from gas to groceries to rent. And that budget might also make it easier for you to identify categories you can cut back on.
2. Set priorities (and actually write them down)
It's normal to have some non-essential items you spend money on every month, like takeout meals, streaming services, and social events. But if your goal is to cut your spending, you may need to establish some priorities.
Think about the non-essentials you spend on regularly and decide which are most important to you. You may opt to cut back on takeout meals if it means getting to see your friends regularly and join them for different activities. Then, put those priorities in writing to help yourself stay on track.
3. Don't shop out of boredom
Unfortunately, it looks like we're heading into another pandemic winter, and that could easily set the stage for boredom shopping – spending hours browsing online because you're stuck at home with nowhere to go. But as much as shopping might help fill some of your empty weekend or evening hours, it could also be a source of needless spending.
A better bet? Find a low-cost hobby to take the place of shopping. An even savvier move? Turn a hobby of yours into a side hustle. That way, you'll not only avoid spending, but also, boost your income.
4. Don't store credit card details on your electronic devices
Storing credit card details on your phone, tablet, or laptop can make purchasing things online quick and convenient. It can also make it too easy to complete those purchases, and that's a bad thing when it comes to impulse buys.
If you're intent on saving more money in the new year, don't store your credit card information on your devices. That way, if you're lying in bed browsing on your tablet, the mere act of having to get up and find your credit card could be enough to stop you from buying the cute sweater or comfortable track jacket you'd like to own but technically don't need.
Spending less money often boils down to adjusting your mindset. These moves could be your ticket to lowering your spending in 2022 – and celebrating the financial goals you achieve because of that.
Alert: highest cash back card we've seen now has 0% intro APR until 2024
If you're using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.