bad money habits - invisible spending

How To Reduce Your Invisible Spending Habits

Invisible spending is usually made up of all them smaller purchases which you are unaware that you made until you see the impact on your bank account later on. At the moment invisible spending is more common than ever. This is due to the freedom we have when it comes to paying for items. With contactless card payments in almost every shop and the ability to purchase online in a matter of seconds, people are spending money without even thinking. This may be considered a positive in certain aspects as it is way more convenient but it’s definitely impacting peoples finances negatively. Therefore, we have put together a few ways in which you can reduce your invisible spending habits.

Keep Track of Your Purchases

Keeping track of your purchases is one of the best ways in which you can reduce your invisible spending. Making note of everything you buy enables you to understand where all of your money is going and when it’s being spent. But, this is not the easiest task and no one wants the extra responsibility of note-taking. Thankfully, there are other options. As more and more people are getting on top of their spending, there are plenty of new ways to begin managing.

For example, With the introduction of contactless payments like Apple Pay and Google Pay, your transaction receipt comes through immediately. This way, you are able to pay for items as you usually would and see every single transaction at any given moment. If you are somebody who prefers to use cash or non-contactless payments, you could even make a note on your phone or simply just write it down once you have some spare time.

Stick To Your Lists

Another great way to avoid invisible spending is to create and stick to lists. By this, we mean to create some sort of shopping list in correlation to your budget. This way, you will not only stay within your budget, but you will also know exactly what you have bought over the course of the week or the month. If you see something in the shop which you didn’t include on your list but it is something that still fits your budget, simply add it to your list afterwards. This will allow you to still know exactly what you have purchased and avoid any unwanted purchase.

Create Lasting Habits

Taking that extra step and putting more effort into your finances will eventually create habits to benefit you. There is always room to improve on your current habits allowing you to lead a steadier finance journey. Creating lasting habits also links to improving your budget or just your overall money management skills. This will not only gradually improve your current financial position but also help you with future financing.

We know that gathering an understanding takes time and is not an overnight process. Therefore, for more money tips and tricks, click here. If you cannot find exactly what you are searching for, there are plenty of tips online which can easily be found for example at the Money Advice Service.