Personal Finance

Invest a portion of your disposable income automatically, and make “paying yourself” the first bill you pay. But make sure a portion of your disposable income is also fun money. That is what you can impulse spend, no questions asked. But when it’s gone, it’s gone. This whole process is just budgeting. You’re an adult and make reasonable money. You can be an adult with this too. You don’t have to trick yourself.

If you're impulse buying crap online, I find keeping items in the shopping cart for a day or so gives me time to think before pulling the trigger. If it's an emergency that's one thing, but most of the time it can wait.

Also I find budgetting apps to be really helpful in curbing unnecessary spending.

Pay yourself first to keep your disposable low. (Define your saving goals and set up automatic saving into another sav account or TFSA/rsp or us alternative) run these transfers the same schedule as your paycheck.

Also, if you tend to spend fast and loose, you may want to Set an amount of time you must waitbefore you can buy the thing depending on cost.

I.e 2 days for a $500 purchase. If you still want it after 5 days, buy it.

I opened a high yield savings account and got into the stock market. Your desire to spend drastically decreases when you can see everyday increases that you don't want to interrupt.

Another one I've always liked - Write down what you want to buy and sit on it for a month. If you still want said item in a month, buy it. If you don't, don't buy it.

It’s not ‘play’ money.

It’s money you’re using to buy investments/savings/a future retirement.

When you start to see it as money that’s already allocated to a regular ‘bill’ you won’t see it as money you can spend.

I have 4 different bank accounts that I use primarily (technically 10 total). What I do is split up my direct deposits and/or schedule transfers so that everything is bucketed. One account for fixed monthly bills, one for variable things like groceries, one for savings, and one for whatever I want, etc.

I put a little more than necessary in each account each month, so every so often I may have a surplus for a given bucket, too. This will either go towards the accelerated payoff of something or I'll split the difference and move half to my fun bucket.

For the most part, this keeps necessary money (bills and savings) out of sight or mind and it's easier to control my impulse spending when the only account I can/should be spending from has a low limited amount.

Save/invest automatically from your paycheck. Can't spend it if it isn't there!

I have a line in my budget called "disposable" which is a fixed amount per month that I'm perfectly happy to spend on me. It covers entertainments, videogames, books, anything that isn't strictly necessary, but is enjoyable.

I keep this largely the same every year, not even adjusting it for pay rises etc. It's a non-negotiable amount (unless things get really dire!) and helps me to understand what I have available to "waste". Keeping it at a static amount helps to divert any extra into savings and investments, and helps me to avoid lifestyle creep.

Generally buy quality stuff that lasts. Stuff that really costs money that you need are housing and car. You square that away, max out your 401k and save as much as you can. That's been my mo, basically everything in the s&p 500... Both retirement and post tax contributions.