How to change your spending habits

Is your spending out of control? The first step to taming it is to track where your money goes. Once you understand how you spend money, it will be easier to find ways to cut back. Here’s a few tips:

Make a list of financial goals. Carry it with you to give you extra will power in weak moments. Ask yourself: Do you really need what you’re about to buy? Will it shortchange your goals?

Control emotional spending. Get a handle on why you buy, so you can avoid spending splurges that are based on emotional needs, such as depression or boredom. Instead, find outlets besides spending money at the mall to satisfy your emotional cravings.

Limit your weekly discretionary spending. Settle on a weekly spending amount that fits into your budget. Make a cash withdrawal on Monday, and do not make another one until next Monday. Not only will you have set spending limitations, it may even be more difficult to part with the cash than with credit cards or checks.

Hide it before you can spend it. Out of sight, out of mind. Have a portion of each paycheck automatically transferred to a savings or investment account.

Make a meal plan. Stock up so you can eat at home. Prepare your menu before heading to the grocery store, then stick to your list. Clip coupons, buy store brands and comparison shop whenever possible.

Eliminate hidden fees that are undermining your savings plan, such as expenses that financial institutions charge you to access your money. Sunmark’s Free Checking with Extras offers no minimum balance requirement, no monthly fees, free online banking and bill pay along with many other money-saving benefits.