4 Techniques to Help You Tackle Your Over-Spending Issues

| November 5, 2017

overspendingOverspending is a common issue, and it can wreak havoc on your finances if you do not bring it under control. Each time you overspend, you may face a cash shortage the following month, or you may be unable to pay your bills this month.

Overspending could also cause your credit card balances to increase. If you struggle with overspending, these are a few realistic tips that can help you to improve your money management efforts.

Create a Budget

One of the most important steps that you can take to curb an overspending habit is to create a realistic budget. Your budget should outline all recurring and non-recurring expenses for the month.

You may even want to project it outward for several months because people often have different non-recurring expenses each month. By creating a functional budget, you can clearly see how much extra money you have to spend at any given time.

You can also determine if you are currently living beyond or dangerously close to your means.

Reduce Your Regular Expenses

Another important step to take is to identify your recurring expenses, such as utilities, rent or a car payment. For each of your recurring expenses, you may be able to reduce how much you spend.

For example, you could refinance your car loan payment. Another idea is to repair a furnace that may be limping along. A broken or poorly maintained HVAC system may use much more energy than a system that is in great condition.

Use Cash

If you tend to overspend using your debit or credit card, a smart idea may be to keep these cards at home. Instead, withdraw enough cash to cover the spending amount that you budgeted for each week.

Once this cash is gone, you know that you can no longer spend any money on miscellaneous items until the following week.

Take Your Credit Cards out of Your Wallet

Some people may keep a debit card in their wallet, but it is truly beneficial to remove your credit cards. Some people who struggle with overspending and credit card debt use their cards to buy things that they cannot afford. When you do not have access to this form of payment, you simply will not use it.

Improving money management efforts will take ample time and attention. You may have financial behaviors and habits that need to be broken. Focus your attention on developing these healthier habits, and they will soon become second nature to you.

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Category: Family Finances

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