If you struggle with overspending then you need to take some serious steps to bring it under control. Spending more than you earn or living paycheck to paycheck can cause some serious harm to your finances, your credit history and even your quality of life. Here are some ways that you can get back on track and stop that overspending.
Set a budget
Budget can be a scary word. But if you could just sit down and right up a budget and then agree not to spend anymore than what is allocated in that budget, you will go a long way to stop overspending. Most people don’t even realize how bad it is when it comes to spending more than they should. Seeing the numbers down on paper can give you a great base of stability to launch your good spending habits.
Identify wants versus needs
Being able to tell wants from needs is easy, right? Wrong! People have different standards of living, and while one person may be able to live without something, the other person may be absolutely miserable. First, start identifying what you truly need: food, clothing, shelter. Then start adding in the next level: basic utilities, education costs, transportation. Those are all needs. Wants are pretty much everything else. Entertainment in any form, be it television, movies, music, magazines, books, cell phones, eating out, etc. are not usually needs. If these things are really important, then find alternate ways of getting them or substitutes for them.
If you are able to read this post, then chances are good that you are in the top percentage of privileged in the world. While you may not be able to afford HBO, you can most likely eat every night, afford basic medical care and have a roof over your head. Don’t shut this message out. There is some wisdom to the old eat your dinner because there are “starving children in (fill in the blank).” Enjoy the blessings that you have to the fullest degree. Take time to savor the things you acquire before running out to get more.