How To Avoid Unnecessary Spending

When money is at hand, unnecessary spending can be a temptation for anyone. After all, it’s human nature. A part of your brain says save, another says spend.However, you cannot let these impulses take over and make uninformed decisions for you. If you want to improve your spending habits, here are some tips on how to avoid unnecessary spending.

Stick to a Budget

If you haven’t yet, you should create and stick to a budget for all your expenses. With a budget, you’ll be aware of what money comes in and out of your wallet. And when you’re seeing the bigger picture, it’s easier to avoid those enticing and unnecessary spending.

Although you can spend money on things you want from time to time, you should put your essential needs first. This includes food, shelter, basic clothing, transportation, and utilities.

Our biggest budgeting tip is to allow for a small amount of extra spending each month, whether it’s an unexpected bill or you want to treat yourself to a new outfit. If your budget is too restrictive it will be harder to stick to.

Keep Track of your Income

Keep track of when your income comes in and how much. You can work out an average amount if you don’t have a regular income. This income could be from your wages, government benefit, pension, or investments.

Make a list, which may include:

  • how much
  • how often — weekly, fortnightly, monthly or annually
  • where does it come from

card machine

Control your Expenses

If your cash always disappears fast, it’s time to take control. Write down your monthly expenses or review your bank statements to see what you usually buy, then add them up.

Here are some types of personal expenses.

Regular expenses:

  • food and groceries
  • rent
  • electricity
  • gas
  • phone bills
  • mortgage payments
  • medical costs and insurance
  • transportation

Unexpected expenses:

  • car repairs
  • medical bills
  • vet bills

Set a Spending Limit

After your expenses, the money that’s left is for your spending and saving. Your spending money is for your wants, such as eating out, entertainment, and hobbies.

However, setting a spending limit is for your own advantage and offers long term benefits. You can start by asking your bank to set a limit on your account. Decide on what you want to do with your spending money to keep within your limit.

Stop Impulse Buying

Impulse buying is an unplanned purchase of products or services. When you learn how to stop impulse buying and its negative effects, it will allow you to stick to your budget and stay on the right track.

How to Stop Buying Impulsively

Stopping a bad habit is all about taking away various means used to make impulsive purchases. You can take some simple steps to stop the dangerous habit of impulse buying, such as:

  • make a list when shopping
  • carry cash only
  • less time for online window shopping
  • ask advice and support from family and friends.

Negative Effects of Impulse Buying

The most obvious negative effects of impulse buying are:

  • higher chance of not being able to pay bills etc
  • it can have a bad effect on your mental health
  • accumulating debts

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.

If you liked our “How To Avoid Unnecessary Spending”, check out our blog regularly to learn more on how to avoid unnecessary spending and how to budget properly.


Ordered by the Federal Court of Australia

The Federal Court of Australia has found that Cigno Australia Pty Ltd (Cigno Australia) and BSF Solutions Pty Ltd (BSF Solutions) have breached the law by engaging in unlicensed credit activity and charging prohibited fees.

In the period from July 2022 to 3 October 2023, over 100,000 consumers have been lent a total of $34 million, and charged fees of over $70 million, under the ‘No Upfront Charge Loan Model’ operated by BSF Solutions and Cigno Australia. At no time has either BSF Solutions or Cigno Australia held an Australian Credit Licence.

The Court also found that Mark Swanepoel (director of Cigno Australia) and Brenton James Harrison (director of BSF Solutions) were involved in these breaches of the law.

With effect from 24 May 2024, the Court has granted permanent injunctions preventing Cigno Australia and BSF Solutions from:

  • demanding, receiving or accepting fees or charges, including amounts of loan principal, from consumers in relation to credit provided under the ‘No Upfront Charge Model’; and
  • engaging in further credit activity pursuant to the ‘No Upfront Charge Loan Model’, including by entering into new agreements with consumers, for so long as they do not hold an Australian Credit Licence.

Cigno Australia was ordered by the Court to, by 5th July 2024, send written communications to consumers who between July 2022 and December 2022 entered into agreements with Cigno Australia and BSF Solutions under the ‘No Upfront Charge Loan Model’.

The Court will later determine whether (among other things) Cigno Australia and Mark Swanepoel ought to pay a pecuniary penalty in respect of this conduct, and whether Mark Swanepoel should be restrained from carrying on a business engaging in credit activity.

Cigno Australia, BSF Solutions, Mr Swanepoel and Mr Harrison intend to appeal the decision of the Court and have filed an application for leave to appeal. If the appeal is successful, some or all of the orders of the Federal Court of Australia may be set aside.

Where can you get more information?

Where to go for further support

You can access legal advice in your state at: Free legal advice –

If you are experiencing trouble with debt, or money worries in general, contact:

  • the National Debt Helpline on 1800 007 007 or online chat (9:30am to 4.30pm, Monday to Friday).

If you need someone to talk to, contact:

  • Lifeline on 13 11 14 (24 hours) or their crisis support online chat or
  • Beyond Blue on 1300 22 46 36 (24 hours) or their webchat