The best trick to know where your money is going is to stick to a budget and allocate all your living expenses. Budgeting is the only reliable way to tame your cash flow. As reliable as it is, there is another important factor to better control what you spend. This involves changing your mindset and how you think about money. When you learn this money mindset trick, you won’t have money controlling you to finally get more power over what you spend.
In order to master this money mindset trick to curb what you spend, you need to examine your buying habits. Do you usually just shop and pick up something new that catches your eye just because you like it? If this describes you, then ask yourself do you really need that item or is merely something you want? After all, there is a big difference between the things we need in life such housing, food, utilities, and basic clothing. All else that we buy is more in the category of what we want over what we need.
We live in a society where everyone seems to have the latest model cars, expensive homes, designer handbags and fashions, electronics, gadgets, etc. Trying to live up to that culture standard to impress others more than ourselves can leave us in a financial rut. Do you really need some of these expenses to keep up with your friends such as a collection of pricey wines, massages to accumulating first edition books that you don’t read just to line your bookshelves to give the impression that you do in order to feel good about yourself? Remember to always ask yourself if you truly need the item or just have to have it because everyone else seems to have it before pulling out your wallet is effective for this money mindset trick.
You could also try to expand on this money mindset trick by only taking cash when you go out shopping. Then you are restraining yourself to spend only a set amount.
This advice about how to change your mindset to better control what you spend may seem drastic to some, but it provides clarity about your spending habits. Needless to say, you can still indulge with some whims while on a budget once you recognize your limits and what drove you to buying in the first place.