There are two main enemies to our pockets: costly companies, and ourselves. The rest of the site is dedicated to beating companies at their own game, but this is all about tackling spending demons. If you spend more than you earn it’s time to stop. This article includes the unique Demotivator tool.

• Spending more than you earn?
• Now I want to scare you!
• The Demotivator
• Budget within your means
• Top tips to stop spending
• More easy ways to cut back
• Other articles/discuss

There’s no need to stop spending for the sake of it. If you enjoy a cappuccino, can afford it, aren’t in debt and aren’t overpaying; sup away. Yet as Dickens' Micawber principle states:

"Annual income twenty pounds, annual expenditure nineteen, nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

There are two ways to check if you’re spending more than you earn.

• The BIG Danger Signal. Are you in debt?
  
  If you are, and can’t answer the question 'what are your debts from?' there’s a problem. If you didn’t buy, for instance, a car or a conservatory, but you've used cards or loans to fill gaps, an ear-piercing alarm should ring.

  Debt is fine if it is planned, rational, budgeted for and as cheap as possible; however if you consistently need to use the credit cards to supplement your monthly spend – you have a problem. Do that, and as I’ll explain in a moment it can have life destroying consequences.
  

• Accurately assess your spending.
  
  If you are spending more than you earn, there’s a simple way to accurately check. The specially designed Budget Planner calculates your genuine annual income and then tells you exactly how much more you spend than you earn.

  Most people are shocked by the result, as many of those who think they’re within budget month-by-month aren’t when it’s done over a year. This is the start point of sorting out your cash; if possible sit down, and spend the time to do the budget. The planner also then helps you prioritise your spending.

Of course, even if you’re not spending more than you earn, if your aim is to save up for something specific, the techniques below will help too.

Putting a little debt on cards may not seem too bad. Yet you’re setting yourself up for a disaster, and not just financially. Sadly too many times I’ve seen the impact debt crisis has on homes, family, mental health and relationships.

You may feel this is over-dramatising; yet when there’s no money left, you can’t borrow more, and the creditors are asking for money back which you’ve no ability to repay, it touches every element of your life.

The danger is what’s called a ‘debt spiral’. It works like this:

The Demotivator is special fun tool designed to complement the full Budget Planner that shows you the real impact of discretionary spending.

I’m commonly asked “you’re the MoneySavingExpert, how do I get the shiny new car/glamourous holiday/designer clothes I want on my paltry salary?” This type of money philosophy is what leads people to constant overspending; the real question is “On my paltry salary, what’s the best lifestyle I can possibly have?” It’s your finances that must rule your lifestyle, not vice-versa.

As I wrote earlier, the most important route is to sit down, concentrate and do a proper budget. This will normally take a couple of hours, but is one of the most straightforward ways to control your spending. To help, use the free Budget Planner tool.

This isn’t just about finding out what you spend, but also then working out how much you have to spend on different items; an easy way to do this is to use the Piggybanking technique which uses different bank accounts to control your cash flow.

If you’re in severe debt, then you need to act immediately, also read the Problem Debts article.

There are two ways to cut your expenditure:

• Pain-free saving. This means being a better consumer and getting better deals on everything you do. It’s what this site’s all about, use the Money Makeover article to see all the areas where you can save. If you’re asking why it’s called ‘pain-free’ – the answer's simple – these changes shouldn’t impact your lifestyle. So maximise the pain free savings and then re-budget to see if you still need the next step.

• Painful saving. After all the pain-free saving, the next step is to curtail your lifestyle, and stop spending on the things you commonly spend on. It’s all about self-discipline.

  To help, I asked regular MoneySavers from the Debt-Free Wannabe section of the forum; who are the kings & queens of personal budgeting, for their top tips to stop spending.

  To start it off, let me give you my Money Mantras. Every time you’re about to spend, ask yourself three questions:

The following MoneySavers' tips are from the Great Stop Spending Hunt. There are also lots of specific spending ideas in the Great Ways to Cut Back Hunt.

	Sleep on it! If you really want something, sleep on it for a night. You may find it doesn’t seem as attractive the next day!
	How much does it cost in work time? If you’re tempted by an impulse buy, work out how long it would take you to earn that money in hours worked. So if you get paid £5/hour and it costs £150, that’s an extra 36 hours you’ll need to work to fund it, taking into account tax (The Demotivator will do this for you).
	Focus on your debt/savings. Work out how much longer it will take you to pay off your debt or increase your savings if you give in. To put it into perspective, if you’re saving for a holiday think ‘that costs one day in Miami!’
	Go food shopping just once a month & plan, plan, plan! Set a budget, write a food plan and take a calculator with you when you go food shopping. And never go when hungry, it's too tempting to overbuy. By going just once a month you’ll be less likely to buy on impulse and for convenience. Top up with milk & bread in between (also see the Supermarket Saving Secrets article).
	Leave debit/credit cards at home. Only take the cash you absolutely need with you and don't have a cash card with you to take extra out of the hole in the wall. That way, however tempted you are, you have to walk away in the end.
	Avoid temptation! Don’t go shopping. If you don’t go to the shops, you can’t be lured by nice things. Stay at home – simple as that! If you like to while away your leisure time by going shopping, do something else instead! Keep busy and you won’t be tempted to get out your wallet.
	For every new thing you buy, try to get rid of an old thing. If you really want to buy something new, see if you can sell something you don’t use any more to cover the cost.
	Make a list and stick to it. Always make a shopping list, before you go to the stores and see tempting goodies. Then once you’re out – don’t stray from it.
	Try online shopping. If you can’t stick to a shopping list, try ordering your shopping online. It’s easier to stick to a budget as you get a running total plus you won’t be tempted by the sights and sounds in the shop! (See the Cheapest Online Shopping article).
	Keep a list of your debts/savings targets in your wallet. Every time you open your wallet for a potential purchase you’ll be reminded of why you shouldn’t be spending money.
	Accept help. If you really need to replace something, try Freecycle or take up offers of hand-me-downs from friends & family.
	Think of your credit card as a debt card. Remember until you pay it off, you're spending the bank’s money not yours. Think of it as a debt card and you might not be so hasty reaching for your wallet (also ensure the debt is as cheap as possible, see the Cards and Loans section)
	Challenge yourself. Make it a challenge to come up with creative nights out or in on a budget. It could be a picnic in the park or a movie night at home. Or if there’s something particular you want to buy, see how quickly you can raise the funds through extra means.
	Start a new hobby. Spend time on a new (free) activity like running or do some volunteer work. This leaves less time for spending.
	Pay yourself pocket money. Set up another account for bills and use this to make sure all your bills are paid. With the money left over you can pay yourself a set amount which is yours to spend as you like.
	Collect your spare change. Stick loose change in a savings jar. You’ll be less likely to break a note to spend and once the change has built up, pay it into your account or off a credit card (see the £2 Coin Challenge).
	Take a packed lunch to work – keeps you out of harm's way. It’s an old one but a good one, making a packed lunch doesn’t just stop you being tempted by expensive sandwich shops, it also keeps you from the pub or easy trips out with friends where money flows out.
	Keep a debt diary. Write a note of when you’re likely to over spend. If you can identify trends that lead to overspending you might be able to prevent them or vent in some other way.
	Make your own at home. Whatever your vice is, whether it’s pizza, beer or frothy cappuccinos, try making it at home for a fraction of the cost.
	Have a no-spend day. Once or twice a week have a day where you spend nothing other than budgeted-for things. Quite often just spending once can break the cycle for the rest of the day.

There's endless little bits of MoneySaving you can do which, added up, can make a real difference. Here's a selection of our favourite suggestion from the Forum.

Entertainment/lifestyle

Full Guides: Cheap Tickets, Days Out Vouchers, Restaurant Vouchers, DVD Rental

Cancel unused digital/satellite television channels.

Invest in a cheap freeview box instead. Read Digital TV guide

Go to the cinema with 2for1 Orange Wednesdays.

Read the full Orange Wednesdays guide.


If you buy a magazine every month take out a subscription.

It is cheaper and many magazines offer a free gift.


Organise nights in with your friends and family.

Get them to bring a bottle and there are no expensive taxi journeys home from town involved.

Try camping or house swapping with friends

For a different type of holiday.

See if your local catering college has a restaurant attached.

Good food at cheap prices.

Health & Beauty

Try for student night haircuts at top salons.

The students are supervised by a fully trained hairdresser.

Visit your local beauty college for cut price treatments.

Most of the students will be coming to the end of their training and need to be examined.

Quit Smoking.

Read the full Stop Smoking guide.

Use a sponge or buff puff in the shower

To reduce the amount of shower gel required.

Don’t buy shaving foam/cream for your legs.

Hair conditioner works just as well and softens up the skin too.

In the Home

Get a calendar to record when bills need to be paid

Or when library books need to be returned.

Grow your own veg.

You don’t need a garden, you can grow lettuce in a window box or potatoes in a old dustbin.

Bake your own bread.

You don’t need a bread maker, you can do it by hand.

Start a compost heap.

Any food scraps can be added to fertilize flowers or your home grown veg.

Brew your own beer.

Read the Great How to start Homebrewing? Hunt.

If you hire any equipment then do it over a bank holiday.

You usually get an extra day's hire for free.

Car boot or eBay unwanted possessions.

Makes you money and declutters your house. Read eBay selling guide

Use white vinegar instead of numerous cleaning products.

It works and it’s cheap.

Only use half a dishwasher tablet per wash.

If you are just cleaning glasses and lightly soiled dinner plates then you don’t need a whole tablet.


Keep old perfume bottles in your underwear drawer.

The drawer will always smell fresh without using liners.

Buy cheap cola to flush down the toilet.

It’ll keep it sparkling clean, and works just as well as the expensive toilet cleaners.


Retain your mobile phone box and instruction manual.

You can often get money back or sell as second hand. Read Mobile Recycling guide.

Saving Energy

Don’t leave electrical goods on standby.

It's estimated that a typical UK household could save £37 per year on electricity bills if they always fully switched home appliances off rather than leaving them on standby.

Turn off all electricals, heating and hot water when you go on holiday.

There is no reason to have them on, and if you are away for 2 weeks or more that’s a lot of money being spent.

Turn off lights when you are not in the room.

Simple but will save you money on your electricity bill.

Go to bed 30 minutes earlier than usual.

Get more rest AND save on electricity.

Don’t have the heating on and a window open.

Just turn the heating down if it gets too warm in the house.

Turn your central heating thermostat down by one degree

You’re unlikely to notice the difference in the heat, but you will notice the difference in the bill.

Use a water saving device if you have a water meter.

You can use a water filled coke bottle instead of an expensive purpose made device.

Use a shelf in your airing cupboard to dry clothes.

Rather than putting the heating on.

Use rechargeable batteries.

A one off cost.

If the oven is on, use it well.

Cook multiple meals/cakes and freeze them.

Invest in a slowcooker.

It’s MoneySaving and timesaving all rolled into one.

When making tea or coffee, don't overfill the kettle.

Or you can buy kettles that only heat the required amount of water.

Keep your fridge/freezer free of ice.

It works more economically and holds more.

Shopping

Stock up staple food stuffs at the cheaper supermarkets.

Read the Whats hot at Aldi, Netto and Lidl? guide

Visit the supermarket late at night

This is when they have more reduced items on offer.

Never go shopping when you are hungry.

You only end up buying overpriced junk food. Read the Supermarket Shopping guide.

Never take your children to the supermarket with you.

“I want” doesn’t save you money.

Use free/opensource software on your PC.

It’s usually just as good as the costly equivalents. See what's available in the Free PC Software guide

Buy remanufactured ink cartridges rather than new.

They work out sometimes at nearly half the price of new branded cartridges.

Don’t buy gifts.

Give vouchers for your time or be arty and make something. Read the Festive Fivers guide for ideas.

Organise a clothes-swapping party with your friends.

One person’s trash is another treasure.

Use money-off coupons, online and offline.

Save the money in a piggybank, don’t spend it. See the latest updated Shopping Coupons

Use email instead of texts and the phone.

Or you can text for free on the web.

Ensure your current tax code is correct.

You could be paying more than necessary.

Use a Government MOT test centre.

They’ve no vested interest in prescribing repairs for your car so it’s more likely to pass. Read the Cheap MOTs guide.

Walk/cycle instead of taking the car on shorter journeys.

Saves you money on petrol and keeps you fit.

Start a car share scheme at work.

It’s MoneySaving and environmentally friendly.