If you put your mind to it, you can curb your excessive spending habits. Unfortunately, most people tend to spend more money than they earn. This urge to overspend on unnecessary items such as designer clothing and expensive vacations is often blamed for excessive spending. However, it is usually the simple everyday purchases that can throw your budget out of whack.
If you learn how to manage your everyday personal spending, you should be able to enjoy a few lavish purchases from time to time. Most importantly, you can do it without maxing out your credit cards or borrowing money that you can't pay back. Hopefully, some of the following tips will help you to control your excessive spending habits in the future.
Create a Budget and Stick to It
Sit down and create a personal budget. Be realistic. Make two lists. The first list should contain your basic necessities. The second list should contain the things that you want but don't really need. Devise a budget that will take care of all of your basic necessities. If possible, also budget for a few of the things that are on your second list. However, no matter how you devise your budget, stick to it. Don't get sidetracked and spend the money that is needed for necessities on silly purchases.
Learn to Clip and Save Coupons
Clipping coupons can save you a lot of money at the checkout line. Clipping coupons can help you to curb your excessive spending habits. The trick is to only clip coupons for the things that you know that you normally buy. If you usually buy store brand or generic products, then it is senseless to clip coupons for name brand items. Make a list of the items that you purchase on a consistent basis and find coupons for them.
Don't let the Sunday newspaper with all of its fancy name brand coupons get you sidetracked. Only clip coupons for the items that you have used in the past. Don't buy a brand name product just because you have a coupon for it. You may find that buying generic products without coupons is just as cheap as buying name brand product with coupons.
You may already have a system in place for purchasing generic products. If this system successfully saves you money, you might not have an urgent need to clip coupons. However, if you still have the desire to save money on the few name brand items that you consistently purchase, learn to clip and save coupons. Those extra coupons that you find in the daily and weekend fliers will help you to curb your excessive spending habits, if used properly.
Plan Your Food Choices
Food is one of the main reasons that people spend too much money. Unknowing, they waste a lot of needed money on snacks and fast food items. Five dollars here on a latte or ten dollars there on a burger and fries can add up quickly when you are trying to save and budget.
These food choices may seem little in nature, but they have the potential for totaling to hundreds of dollars on a monthly or yearly basis. Whether you are at home or work, when you don't plan your food choices you will lean towards overspending as well as overeating. Sit down and create a weekly menu. When you are ready to shop for groceries, use your weekly menu to guide you and stay within your budget. Create a food plan and discontinue your excessive spending habits.
A weekly menu allows you to save money in two ways. First, you won't buy unnecessary items while shopping for groceries. Second, you will already have a plan for all of your breakfasts, lunches, snacks and dinners. As a result, you won't make impulsive eating choices such as fast food meals and vending machine snacks. You won't spend as much on food. Over time, you will notice a much improved difference in your personal finances.
Start a Savings Account
Shop around for a high interest savings account .Who says that you have to spend every penny that you make? Pay for the things that are necessary and then put the rest into your savings account. You never know what life may bring down the road. Save your money for positive things that you may want in the future. If you start saving now, the funds will be available when you need them. Don't spend all of your money now. Save and learn how to control your excessive spending habit.
Create an Emergency Account
Many people mistakenly use the money in their savings accounts for emergencies. Don't start this bad habit. Your savings account and emergency account should be separate. They serve different purposes. Your emergency fund should be for emergency expenses only. Make sure that you have about 6 months worth of living expenses within this account. Consider this your safety cushion. Don't spend it unless you absolutely have to. Don't let your excessive spending habit be the reason why you don't have an adequate emergency account.
Learn to Live With Less
You don't have to have the best of everything at all times. Learn to sacrifice. Yes, you may want that new designer purse, but you don't have the money to purchase it right now. Forget about it and move on. Don't max out your credit cards on such frivolous purchases. Credits cards allow you to enjoy such purchases now, but you will pay dearly for them in the long run. Settle into a comfortable lifestyle that allows you to control your excessive spending habits.
Sticking to a budget is the hardest thing to do if you are accustomed to getting everything that you want whenever you want it. This always leads to excessive spending habits that are hard to change or get rid of. It is obvious that there are so many things that you want to see and do. Unfortunately, you don't have enough money for all of these things. You shouldn't feel guilty for wanting the best things in life. However, just understand that you can't have them all at one time. Find different ways to maximize the money that you do have. A few tweaks to curb your excessive spending habits will allow you to live within reason and continue to experience "some" of these finer things in life.