7 Helpful Ways to Curb Overspending

We’ve all been there before – making unnecessary purchases that we know are out of our budget.

Going over budget from to time is quite inevitable but for some people, this happens every. single. month, which brings their finances into a downward spiral.

Overspending is a serious problem.  If you find yourself in this situation, it’s time to make a conscious decision to change these bad spending habits before they destroy your life.

Here are 7 ways to help you get through it:

Set goals and write them down.

Having financial goals will motivate and encourage you to stick to your budget and avoid unnecessary spending.  Aside from this, it’s also very helpful to set mini goals for your spending. For example, “not buying new clothes till you’ve worn your other ones” or “only have dinner out once a month instead of once a week.”   Just start small and make them realistic and specific.

Have a budget and stick to it.

Speaking of budget, do you even have one?  If not, then you should start creating one because having a budget is an important tool to prevent you from spending more than you are earning.  A budget will give you a clear picture of how much money comes in – that way, you’ll be able to see your spending limits.  Just to warn you, creating a budget is easy, but sticking to it is hard.  At the end of the day, it still boils down to discipline and self-control.

Know your triggers.

Retail therapy – the practice of shopping in order to make oneself feel more cheerful.  Yup, we’re all familiar of that. But it doesn’t always have to be that way. By identifying your triggers, such as making unnecessary purchases when feeling sad or overspending on food when stressed out, you get to take control over your emotions and manage your feelings the right way.

Just carry cash at all times.

Credit and debit cards take the pain out of “paying.”  It’s the culprit for spending impulsively.  So just drop them and pay cash for your purchases.  This way, you’ll see money leaving from your hands (which I hope will discourage your from making a purchase).

Mute the notifications.

Knowing about the latest offers, bargains and sales from your email subscriptions and social media accounts will surely tempt you to make purchases you don’t even need. To avoid that, turn off the notifications and unsubscribe/ unfollow accounts of retailers and deal sites.

Think before you buy.

No matter how big or small, making random purchases without thinking it through is a toxic habit to your finances.  Here’s one tip – before making any purchase, ask yourself these 4 Questions.

Budget for a little fun.

As much as you want to help yourself stop overspending, know that depriving yourself can do more harm than good.  Yes, getting over self-deprivation ends up being more expensive!  So give yourself some money to enjoy yourself in order keep a positive relationship with your finances.

I hope this article has encouraged you to take the initial steps towards improvement.  I know that you can’t transform your habits overnight but what’s important is that you are committed to make a change and gain control over your finances.