How to Stop Spending More Money Than You Have – Guest Post
How to Stop Spending More Money Than You Have
We all know how important it is to ensure that we don’t spend more money than we earn. Unfortunately, figuring out how to do that can be easier said than done. In a world where it’s becoming increasingly easy to spend your money just by clicking a button or tapping something on your phone, over-spending is a serious problem.
The good news is that if you’re worried about spending too much too fast, there are things you can do to improve your financial situation. Here are just a few simple tips that should help you to stop spending more money than you have.
Start with a Budget
Many people are uncomfortable with the idea of having a budget they need to stick to. After all, it’s hard to have fun with your cash when you’re constantly counting every penny. However, one of the biggest mistakes that people make is avoiding a budget simply because they’re worried that it means they can’t have any of the things they like anymore.
While creating a budget does mean that you’ll need to compromise, it’s not about getting rid of everything that you love. Instead, it’s all about knowing where your cash is going so you don’t have to worry as much about what you spend.
Set Goals to Focus On
While budgeting doesn’t have to be as difficult as some people think, it can get tough at times – particularly when you’re tempting to go out for drinks with friends or splurge on a new outfit. To help make sure that you stick with your budget through the tough times, set out a few goals that help you to visualize what you want to achieve with your spending habits. For instance, think about what you want to achieve with your cash.
Decide whether you want to get your credit card bills paid off or put money towards a vacation with the whole family. Regardless of what your goals might be, having those targets in place should help you to stay focused.
Pay for Everything with Cash
If you’re the kind of person who struggles to keep track of your spending habits, then one of the best things you can do is pay for the things you buy with cash. Ultimately, it’s far too easy to buy things online, or in person when you’re just using a credit card. However, if you take cash with you to do your shopping, then you have to stick to your limits.
There’s no way that you can spend more than $100 if you only have that much in your wallet. Cash works because it gives you a defined amount of money to work with. This forces you to think carefully about your purchases.
One of the biggest and most positive changes you can make when you’re trying to improve your spending habits is to start planning ahead with your purchases. For instance, when you invest in something new, like a loan, make sure that you compare your options in advance to ensure you’re not over-paying on interest.
When you go shopping for groceries, make sure that you have a list of items that you want to purchase in mind, so that you don’t buy anything more than you need for the whole week. The more you plan, the better off you’ll be.
Try the 3 Day Rule
When it comes to big purchases, one of the best things you can do is force yourself to think carefully about whether you need to buy that new item. The 3-day rule involves taking three days to think carefully about each big purchase you make before you spend on it. Once the third day is up, you can ask yourself if you really need that new television, or pair of shoes.
Most of our bad spending habits come down to impulse buys. Fortunately, the three-day waiting period forces you to ask yourself whether you need something. That way, you don’t end up with any buyer’s remorse.
Finally, a great way to boost your chances of developing savvier spending habits is to figure out what you’ve been doing wrong in the past. We all make mistakes at times, and you may even fall off the wagon with your budgeting too. The good news is that you can learn from your mistakes.
Look at your spending habits with an open mind and think about how you can adjust your strategies to overcome specific challenges in your money routine. For instance, if you often splurge on Chinese takeaway, can you learn how to make your favorite meals at home?