How to Reduce Spending When You’re Stuck at Home

At first, months spent in the house looked like it would line your wallet with extra cash. You’re going out less, your commute costs are practically zero, and you’ve had to cancel your spring break vacation. 

But now more than a year into the pandemic, you have little to show for it. A quick look at your bank account reveals you’re actually spending more than you usually do. 

It’s easy to beat yourself up for overspending, but don’t discount the stress toll of the global healthcare crisis. For a lot of people, shopping online is a fun and simple way to let off some steam when they’re feeling anxious. 

If a growing tower of delivery boxes at your door is why you see your bank balance shrink, here are some tricks to help you keep more money in your accounts.

Use More Than One Checking Account

There’s no harm in splurging on fun things you like. It only becomes a problem when you use up cash you need for essentials — whether that’s rent, utilities, savings, or debt repayment. 

This is easy to do if you keep all your earnings for the month in one account. With everything muddled together, it’s easy to lose track of the money you need for bills and the cash you have to play with. 

Separating it into multiple free accounts can help you visualize your priorities easier. Whichever account you use for expenses becomes a “no touching” zone you know not to dip into for shopping. 

Pay Yourself First

Setting up automatic payments toward these important expenses can help you avoid dipping into reserved funds. You can arrange it so that you never forget to contribute toward your savings or make the minimum payments toward line of credit personal loans or credit cards. 

When it comes to credit cards or online line of credit loans for bad credit, try to pay off as much of your balance as possible. Financial institutions like MoneyKey recommend going above and beyond the minimum payment when possible. 

If you have a MoneyKey & CC Flow line of credit, any additional payment may pay down your line of credit’s outstanding principal balance and free up your available limit. 

Make it Harder to Shop

Many of us shop online simply because it’s easy. Jumping on the web and visiting your favorite stores has become a habit. 

It takes no thought to scroll through clothes or household items, and, if you’ve saved your payment details, you can get whatever catches your eye without even getting up to find your credit card. With just a few clicks, you’ll have a pizza subscription and a new latte frother en route. 

That’s why it’s crucial you set up barriers that making shopping — and spending money — harder. 

  • Delete your saved payment info from web browsers and stores
  • Take your name off newsletters that send you reminders of sales and items you’ve left to linger in your bag
  • Set up website blockers to keep you off irresistible stores

Break out of the Spending Habit

Not spending your money can be hard when you’re bored with nothing to do. But a few money management tricks can make it a lot easier to hold onto your money. Don’t rely on willpower alone. Rearrange your accounts, set up automatic payments, and lock yourself out of stores to give yourself a competitive advantage.  

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