8 Ways to Control Your Spending

Your spending habits not only influence your current lifestyle but they have the power to shape your financial future. If you overspend, you may find yourself in debt—the avergae credit card debt per borrower is $6,523, according to TransUnion. A little guidance and resources such as Fifth Third’s Momentum® Savings Account can help you get a handle on your money situation. Doing so will provide you with more freedom, less stress and greater control over where your money goes. If you’ve had trouble keeping your spending under control in the past, here are some strategies for applying the financial brakes.

Key takeaways: 

• Taking control of your spending can help you achieve current goals and better position yourself for the future.
• Identifying the reasons you overspend, tracking your spending and setting a monthly budget are the first steps toward getting your spending under control.
• Strategies that can help you spend less include delaying purchases, avoiding “lifestyle creep,” shopping with a list and automating savings.

1. Identify your spending triggers

Knowing why you overspend can help you regain control and take meaningful action. Perhaps you spend out of boredom or shop when you’re stressed. Recognizing those tendencies can help you adjust your behavior so you may be less tempted to spend. To gain further insights, track your purchases with tools such as the Fifth Third Mobile App so you can see where your spending is going off the rails. Regularly monitoring the activity in your checking account can help, too—especially if your Fifth Third Bank debit card is connected to it.

2. Set a monthly budget

If the word ”budget“ scares you, think of it as a spending plan. After tracking your spending (in the step above), use this Spending Calculator to get a clearer picture of what’s going out of your bank account every month. Try grouping your expenses into big categories and see if there are places you can cut back. Make sure to include debt payments in your plan. Your bank may also provide insights on your spending and savings habits that could help. Once you have a budget in place, it’s time to set savings goals. Check out the suite of Fifth Third Momentum® Banking services, including free checking accounts and savings accounts, to learn how Fifth Third can help you put funds aside for your desired goals and financial health.

3. Shop with a list

It’s easy to wander the aisles and think you’ll just grab what you need at the grocery store or big box store. But the less targeted you are, the more room you have to impulse shop. Taking the time to write a list or use a list app on your phone can keep you focused and help you avoid buying items you don’t need.

4. Review subscriptions and bills 

As you track your transactions, review repeating charges—from streaming services to the monthly gym membership you rarely use. Consider whether you’re still enjoying those services. If not, cancel them and redirect that money to a savings account.

5. Use the 24-hour rule

Before making any purchase that’s not essential, wait 24 hours. The delay helps prevent impulse purchases and may ultimately stop you from buying things you don’t need. Taking time to re-think the purchase also gives you the opportunity to create a savings plan if the item is important but not immediately affordable.

6. Avoid "lifestyle creep"

Higher earnings don’t have to mean higher expenses. When your income increases, resist the urge to automatically upgrade your lifestyle. “Lifestyle creep” can quietly eat away at your savings. Channel extra income into your Fifth Third Momentum® Savings Account, personal investments or debt repayment plan instead.

7. Make a debt pay-down plan

If you’re just slogging away making the minimum payments on interest-accruing debt, it’s time to get serious about whittling the balance down. Use an online debt consolidation calculator to help you determine how long it will take you to pay off that big debt and how much you need to put down each month. Then, set up an automatic debt payment from your Fifth Third Momentum® Checking Account.

8. Automate savings 

Saving is easier when you don’t have to think about it. By making savings automatic, you stay disciplined and consistent with your money management goals. You also are less tempted to spend if the money is automatically transferred out of your checking account. That makes it easier to build financial stability over time. The account you choose can also help you achieve specific goals. For example, the Fifth Third Momentum® Savings Account rounds up everyday purchases and automatically saves the spare change. You might also choose to put the extra money in a health savings account, designed for setting aside funds for future medical expenses. There are also other Fifth Third savings accounts designed for different goals such as building an emergency fund or saving for a dream vacation. Think of automation as a “set it and forget it” strategy for success—a simple step that keeps your savings growing while you focus on other goals.

Each strategy on its own can help you better manage your cash flow. If you implement several (or all) of these techniques, you’ll find that keeping tighter reins on your cash—and making it work for you—is key to financial health. To realize the ultimate achievement, apply for a savings account from Fifth Third to direct your newfound savings to your financial goals.

Three things to do:

• Explore Fifth Third savings accounts to put money aside for your goals.
• Calculate how much you can save by taking simple actions.
• Learn strategies to save even if you’re on a tight budget.