4 Reasons You Need To Try a Spending Freeze
Author: Deb / Date: August 8, 2023 / Tags: budget
(MoneyHippo.com) – Working to get your finances in order can be a challenge. Building a budget, accounting for savings, retirement, emergencies, and increasing prices might overwhelm even the most financially savvy individual. A spending freeze could be just the thing to get you back on track, but how?
Incorporating this method of eliminating all spending except for essentials has benefits beyond the obvious goal of ending the challenge with more money in the bank than you would have otherwise. Here are some reasons to try a freeze yourself.
- Savings: Setting a period when you don’t spend money will net you cash to apply to a savings account — quickly.
- Re-Training: We can all fall victim to impulse shopping, creating a habit of purchasing items indiscriminately in the moment and regretting the decision later. A freeze in cash outlays could make you more mindful about spending, allowing you to allocate the funds elsewhere.
- Highlights: Consciously stopping extraneous cash outlays will force you to focus on needs versus wants. After finishing the challenge, you might find that what you thought was a requirement for living wasn’t after all. That realization could help you restructure your budget, moving you closer to financial goals.
- Resources: Before and during the spending freeze, austerity might force you to use what you already have around the house. Could you repurpose items sitting in your garage? Would it be possible to forage through the pantry and create a new meal for the family?
Resetting your budget and mindset by trying a spending freeze a few times a year could help create new habits that will benefit you in the short and long term.
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