How to stop Overspending
We are all guilty of frequent overspending, and more often than not, it can interfere with where you stand financially. That’s a tough spot to be in these days, but there are ways you can quit the habit of spending too much money.
Start with basic limitations on inessential expenses:
Most humans need caffeine to get through a hectic week of work. Purchasing a beverage or breakfast each morning or afternoon can get costly. Sure, a few dollars here and there can seem like quite a small amount, but like anything, this can add up. Attempt to break the habit, and your wallet will indeed feel a bit heavier. Even if it is for the duration of a month, make your coffee, breakfast, snacks and such at home, and make sure to record the savings in your monthly budget. Visualizing the amount can be influential in your new, effective way of spending. Perhaps you can take it a step further and prepare all your meals prior to the week. This eliminates the need for purchasing lunch daily from various, expensive restaurants. Minor changes can be the key to succeeding in gradually limiting your spending.
Food and clothing are absolute essentials in life, but you don’t need to exceed your budget to attain quality necessities. Plenty of clothing stores provide weekly deals and sales that can increase your wardrobe collection without dramatically decreasing your funds. Apps and coupons are more abundant than ever, and they can really help you get more bang for your buck! When it comes to food and beverages, toiletries and hygiene products, a vast number of stores today have options to purchase items in bulk. It may seem more expensive at the time, but limiting trips to the store for these items can almost completely diminish the chances of being coaxed into those pesky, and very tempting impulse buys. Set aside a clearly defined list of items that are used by you and your family members either each day or each month. Finding out what is used and what can be subtracted is another factor in minimizing overspending. Overall, here are a few notes to keep in mind when doing the shopping.
- Is this something that me or my family uses daily/monthly?
- Locate a store that sells commonly used items in bulk for a reasonable price
- Consider switching to a generic brand of a particular item
- Pre-prepare food items and snacks to take to work/school
- Set aside a specific time to shop, and stick to your defined list!
Purge items that are no longer used, and sell any items you can:
Spring cleaning does not have to be exclusively for the season before summer. Any time of the year is perfectly appropriate for tossing items that are no longer needed/ in use. Take inventory of your furniture, clothing, or appliances that are just collecting dust in storage. Why not take them in and see if you can exchange them for cash? Use the newly added income as savings towards objects that you will soon need. You are not taking away from your budget as the funds were gathered elsewhere! It’s a win-win. Others that can find a purpose for the ignored property will be thankful, and it just required a small effort from you. Children grow out of clothing and toys so rapidly, the neglected items can pile up and take up space. The toys and such that you are unable to sell online or in garage sales can be donated. This eliminates the clutter, and earns you a few extra dollars as well. Even if you earn ten dollars for an old chair you haven’t used in years, that’s still ten extra dollars you didn’t have before! That’s ten dollars automatically saved towards imperative expenses, without having to overextend your funds.
The most successful way to ensure you are not overspending? Budget, Budget, Budget!
It has been mentioned before, but it is information worth being repeated. If you record what your family’s monthly income is, it simplifies the process just a bit more. Almost every working person needs to put gas in their car, clothes on their backs and food in their bellies. Everyone needs quality healthcare and yes, everyone deserves to get the most out of life, and have a bit of fun too! Make it possible to enjoy a night out, or family trips guilt free! If you properly set goals and limits for yourself and your household, it is easier to not spend more than you have to. Each week, set aside a certain amount of money for a specific expense. After your bills are paid, calculate what you have left and divide the money evenly. It doesn’t even need to be a large amount! Remember, it all gradually accumulates into a more substantial amount with time. The golden rule is to be strict and responsible when sticking to your budget. If an unplanned medical or mechanical bill were to come up, you may need to sacrifice a night out to compensate. Or, you can seek alternative options to entertain friends. Perhaps invite a few friends over to your home and have them each bring a dish. You are not spending as much money as you would for a night out at an expensive restaurant or nightclub! You may not even spend a dime, and that would certainly be an even better outcome. You can still enjoy and make memories with friends and loved ones, but you won’t be overexerting your funds.
Overspending can seem harmless, but the outcome could be detrimental.
We often believe that if we physically have the money in our pockets, it’s perfectly okay to spend it however we see fit. We are in the moment, and do not consider it overspending if we don’t incur a late fee on our bank statement. This is a common misconception, and it can perpetuate the idea that when money comes in you need to spend it immediately, and worry about the important expenses later. It’s a pretty unreliable way to live, but with this advice, it is a possibility to part with your old ways, and live comfortably, without worrying about the repercussions of overspending. You have the tools, put them into action!