Lending Club Blog

Spending Less in Two Easy Steps

Reducing our finances to their simplest form, we are left with income and expenses. Increasing income is often time consuming and somewhat out of our control. That leaves expenses as the variable that can be changed to improve our finances. If you are looking to spend less, try this two-step plan before making any large purchases.

Step 1: Write down why you want to buy something

If you can’t fill out a piece of paper with your reasons for making a purchase, then you probably don’t need the item. Try to be as specific as possible. A reason like “It will help me to live a more productive lifestyle because of …” Is a better reason than “It’s cool so I want it.” See how many reasons you can come up with. If you have reasons against the purchase, you can write them down as well. Having more than one or two reasons against a purchase probably means that you already know that the item is unnecessary.

Step 2: Wait a week before buying

After a week, review your list. Add or subtract from the list as appropriate. You may miss out on a sale as a result of this method, but that may allow you to take another reason off your list. “I want to buy it because it’s on sale” isn’t a good reason for making a purchase to begin with. If you are still convinced that you should buy the item at this point, then go ahead and buy it.

While these steps can help you to make smarter purchasing decisions in the future, they won’t help with poor decisions you may have made in the past. To help resolve those, you can try to consolidate your debt and get back on the right track.

Using the two step plan, you’ll probably find yourself much less likely to buy items that you really don’t need. Both steps help to reduce impulse buying by adding gates between you and the purchase. Those items that do make it past both steps will leave you with a satisfaction that overspending could never hope to provide.

Thursday, April 10th, 2008 at 10:35 am

Comments (0)


5 Ways to Get Your Finances Ready for the Holidays

How to Build a Budget: Part 1

The State of Debt: 2016

Types of Loans 101

See more
Lending Club Awards
  • Archives z

Recent Posts

5 Ways to Get Your Finances Ready for the Holidays

Read More »
December 1, 2016

How to Build a Budget: Part 1

Living on a budget. It can sound scary, right?… Read More »
November 21, 2016

Five Signs Your Business Needs Capital

Knowing when your business needs working capital— and promptly… Read More »
November 10, 2016

How does a car refinance loan work?

Whether your goal is to lower your monthly car… Read More »
November 2, 2016

Are you paying too much for your auto loan?

How refinancing your auto loan with a better rate… Read More »
October 25, 2016

The State of Debt: 2016

Politics can be a divisive topic, where issues and… Read More »
October 24, 2016

Lending Club Teams Up with United MileagePlus® to Offer Customers More

  When it comes to… Read More »
October 21, 2016

Patrick Dunne: A Message to Investors

I wanted to take a moment to introduce myself… Read More »
September 29, 2016

Line of Credit vs. Loan

Lines of credit (LOCs) and small business term loans… Read More »
September 28, 2016

Types of Loans 101

There are many types of loans out there and… Read More »
September 16, 2016


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w