Unexpected perks of cutting spending

Eliminating online shopping is more than a fad or a New Year’s resolution. For millions, cutting things out of the budget is an absolute necessity.

If you’re having to scale back on discretionary spending — whether that’s shopping, travel or something else entirely — here’s how to give up that financial habit without feeling deprived.

See the silver lining

The news is filled with fear, worry and sadness. But it helps to see the silver lining, says Denise Downey, a certified financial planner and owner of Financial Trex LLC, based in Spokane, Washington.

Depending on where you live, you may be forced to stop some spending — on travel, sporting events, haircuts, entertainment and more. This involuntary saving can help you make changes you wouldn’t have otherwise made on your own.

“Those decisions are being made for us right now,” Downey says. “It’s not a matter of, ‘Do I cut the vacation this year or not?’ It’s cut. There’s no decision to be made with that.”

“If you want to put a positive spin on it, it’s making it easier for people to cut their expenses because they’re removing that decision-making hurdle.”

It’s all about perspective. So, if you can, focus on the benefits. For instance, you may find you’re feeling a positive boost as you watch your bank account grow and your credit card bill stop climbing.

So sure, my deliveries of clothing, makeup and the newest scented candles aren’t as frequent. But much like the thrill of getting a delivery, I’m finding that

not spending is also appealing.

Get Your Power Back

It’s probably obvious that placing fewer online orders equates to saving more money, as long as you don’t substitute an expensive activity in its place. The same goes for other types of spending. Cutting back any spending habit can lead to savings.

Learn a new habit

Don’t get discouraged. Your decreased spending won’t have to last forever.

But then again, you may find you don’t necessarily want to return to your pre-pandemic spending habits. And that’s OK, too.

Chapman says many people will become more accustomed to shopping less following the COVID-19 outbreak, especially if they’ve replaced their shopping habit with more cost-effective activities.

Take this time to learn some new habits in place of your old costly ones. Drew Harris, CFP, senior financial advisor at Greenway Wealth Advisors LLC suggests going for a walk, talking with family and friends or finding some other inexpensive activity you enjoy doing.