5 Simple financial restraints to change your spending habits

Financial Restraint

5 Simple financial restraints to change your spending habits

What the hell is a financial restraint? Well it maybe a term I just coined. When googled there’s not a lot that comes up! So, my thoughts on what financial restraints are this; it’s anything that keeps you disciplined in your spending. Basically, it’s your sheer determination or habits that prevent you from spending money. 

1.The 24  hour rule – One easy way to practice financial restraint is to impose a 24 hour rule.  Basically, if you’re buying anything that wasn’t a budgeted purchase needs to be put on hold for 24 hours. This limits any impulse shopping and gives you time to think whether you really need or want it. It also would give you time to spend on financial restraint #2

2. Shop around for multiple prices – You should ALWAYS shop around for better pricing. If you’re planning on purchasing something and know you can wait. Call around to get different quotes. Go to different stores or better yet check it out online. Amazon is always a good source to give you multiple price points. There’s also lots of comparison sites for big purchases like insurance, mortgages or cars.

3. Spending limits – If you’re budgeting you’re probably going to break that budget every period if you don’t put in some room for miscellaneous spending. Whether it’s $5/week or $100, you need to define your miscellaneous budget. This can be for anything that you’re not budgeting for, maybe a video game or snacks. Basically it’s for those impulse buys or when you want to…



4. Hourly worth – If you’re employed you’re paid a set rate per hour. Salary people can just divide their yearly total by 2080 which is 52 weeks at 40 hours per week to get their hourly rate. Now take away your marginal tax rate off of that hourly rate. This is your NET pay per hour. Every time you think about buying something, think about how many hours it would take to pay it off.  Is it worth it now? Do you want to spend all that extra time at work just to pay for that item?

5. The cash/envelope rule – I’ve never done this financial restraint myself. It’s one I hear/read a lot about other people doing it. Some people like to put a certain amount of money in their wallet each pay period or in an envelope.  That’s their spending money for that period. Any purchase that doesn’t fit in that budget doesn’t get bought.

Hopefully at least one of these financial restraints will stick with you and help curb your spending so you can achieve your goals. What are some of your favorite financial restraints that I may have missed? Do you currently implement any of these in your day to day lives?


  • I use rule 1 and 2 a lot. Another thing I like to do is avoid unsolicited sales. Basically if I don’t need something when it costs $100, then I probably also don’t need it when it’s $70. I may have saved $30 on the purchase, but I’d be $70 poorer. This is why I stay home on boxing day. 🙂
    Liquid recently posted…Surround Yourself with High Quality PeopleMy Profile

  • I recently bought three identical pairs of the same dress pant just to get the best deal on them… all in one day. After getting them at full price in the store, I found them online for 40% off so I ordered a pair. When I returned home later that day, I realized ebates would give me another 6% cashback. Yup. Three pairs of pants were, in some small way, in my possession.

    You could say I know a thing or two about shopping around, item #2 on your list, though I may need some practice to shop around, then purchase and not the other way around. 🙂

  • Good article. Usually, I follow 2 & 3 rule. always prefer Shop around for multiple prices is the best idea to save money. I think some of my friends want this type of article. It’s worth able to share it.

  • I think it will be clear and informative stuff I have found. What you said is correct anyone can easily understand this.These type of article will create an awareness to the people. Going to share with my friends.

  • I’m a moderate spender, but I feel like I can do much better. I’m proud to say that I’m doing number 5 right now. I put money inside the envelope every pay day use the money for my travel funds, and I can attest that it is effective provided that you can restrain yourself from getting money from the envelope when you ran out of cash.

    I think doing number 1 and two can help me reach my goals faster. I’m guilty of impulse buying, and I don’t impose spending limits. I should change my spending habits in this department before it’s too late.

    Rule number 3 is helpful too especially if you’re looking around for insurance products like long term care insurance or life insurance, which are known to have high premiums. Experts will recommend shopping around and comparing plans first to find the most affordable option.

    These are awesome tips. Thanks for sharing!
    Samantha Stein recently posted…A Detailed Guide to Buying Long Term Care InsuranceMy Profile

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