A Spending Freeze Can Help You Meet Your Financial Goals

If you’re feeling like you’re spending more money than you should, you’re looking for a way to save money fast, or you need to stretch your money to the next paycheck, a spending freeze could be beneficial.

A spending freeze is essentially a financial fast where you refrain from spending unnecessary money for a certain period of time. Dramatically cutting your spending may not sound like fun at first, but it can be worth the sacrifice if it means meeting your financial goals.

Here’s how to have a successful spending freeze.

Decide your goal.

Don’t do a spending freeze just for the sake of doing it. You might end up frustrated with the process and go back to your normal spending habits.

A spending freeze can help you break bad spending habits, reshape the way you think about money, help you save money, force you to prepare your own meals, or minimize the amount of clutter you have in your home. Knowing what you want to get out of your spending freeze will keep you motivated and help you measure your success.

Choose a time period.

Your spending freeze can last for as little or as long as you’d like. You might choose a weekend or even an entire year. If it’s your first spending freeze, consider starting out with a shorter period of time so you can get a feel for what it feels like to completely eliminate extra spending. Then, you can extend the time period once you decide it’s working for you. 

Set the rules.

You still have bills, groceries, transportation costs, and other necessary expenses, so you can’t completely cut out all spending. Instead, decide what you can and can’t purchase while you’re on the spending freeze. You might choose to spend money only on necessities. Or, you might put a freeze on the categories of spending that are a problem for you, e.g. eating out or online shopping.

Outline permitted spending.

If you’ve ever gone on a diet, then you know the cravings can tempt you into going back to your old eating habits. The same thing can happen with a spending freeze. Something about cutting back just makes you want to spend more money. 

Rather than give in to spending impulses, keep a list of things you want to buy during the freeze. Once your freeze is over, review the list and decide whether it’s still something you want to purchase.

Leave the plastic at home.

Credit and debit cards make it too easy to spend. Carry only the amount of cash you’ll need so you can’t spend extra money.

See it through to the end.

You might be tempted to go on a spending spree once it’s over, but don’t ruin all the progress you’ve made by going overboard. Consider purchasing yourself an item from the “wants” list you made, but make sure you plan for it.

Review your success. Track how much money you saved. Write down any lessons you’ve learned and tips for an even better spending freeze next time.