Do you spend whatever you earn every month? Do you have a penchant for overspending? Do you charge more than what you can afford on your credit cards? If so, then you must be accustomed to getting debt collection calls regularly.
Dude, you’re borrowing more than what you need and can afford. Apparently, you’ll get into credit card debt, and it’s quite natural that debt collectors are calling you for payments. You’re enjoying someone else’s money. Why should that person allow you to walk away scot-free?
What can you do to overcome this problem?
- Enroll in a debt settlement program and pay off your credit card debts.
- Stop overspending and save money for getting out of debt
- Create a budget and follow it
- Create an emergency fund for the rainy days
Today, we are going to talk about the point no 2, and that is, how you can stop overspending especially when you don’t know where to start. If you overspend every month and want to get out of debt, then this post is for you.
1. Take your credit card off from your Amazon profile
Amazon and eBay have made online shopping too comfortable and convenient. Just save your credit card or debit card details in Amazon’s ‘preferred payment option’. You’re done. You can shop anything that catches your attention from Amazon within a few clicks. It’s so convenient and so dangerous.
Remember, you have a penchant for overspending. Before you know it, you can end up shopping many things with your credit cards online. So the best thing you can do right now is to remove your credit card details from Amazon and other online shopping profiles.
2. Keep your credit cards in the drawer
You need to work on your problem areas. You’re addicted to swiping credit cards. You have to stop it. One right way is to limit your exposure. Keep your credit card in the drawer or hide it in any other place.
3. Have only cash-only diet to discipline yourself
Some people can use credit cards without incurring debt. But you don’t have the discipline or the desire to spend less or keep track of your purchases. Hence, it’s best for you to go on a cash-only diet especially for those categories on which you overspend every month. If you overspend on entertainment every month, then prefund this group with cash. Remember, you have to stretch the money you have for this category until the end of the month. Whenever you feel tempted to overspend, think about the group which is going to take the hit for your overspending. This may force you to stick to the budget.
4. Wait 24 hours before buying anything
One of my friends has a weakness for impulse purchases. She says there’s always a beautiful skirt to purchase or a big sale going on. If she doesn’t stop herself proactively, she ends up shopping until she has spent all her money.
The best way to stop impulse purchases is to wait for 24 hours before buying anything over $100.
Wait for 24 hours and think if you still want to buy it. Usually, your enthusiasm for buying a particular product wanes after a day. You also get time to research on the item, compare price, analyze your budget and saving goals.
5. Look for cheaper options to get what you want
There is no need to give up everything you love for controlling your overspending habits. You can still have the things you like. All you need to do is to look for cheaper options to get what you want.
If you love wearing branded clothes, visit the consignment stores where you can get high-end branded clothes at a discount. If you love to drink, have a bottle of beer at your home instead of going to the local bar. If you love to eat like me, hon on your cooking skills and have delicious dinners.
If you can’t start your day without a big cup of coffee in the morning, then buy a good coffee machine for your home. You can have delicious coffee at home without spending $5 every day at the coffee shop.
6. Curb your temptations
Sometimes you have to take drastic steps in life for achieving your financial goals. When your goal is to stop overspending, you have to avoid giving in to your temptations. Last year, I spent half of my monthly paycheck on food. It wasn’t that I had dinners at expensive restaurants every day. Instead, I chose an easy method. I ordered food from the renowned restaurants in town through a food delivery application. The food delivery app used to give me exciting offers for spending a certain amount, and I fell into that trap. Needless to say, I overspent every week and crossed by budget.
Initially, my love for delicious food made me forget how much I was spending on foods. The wake- up call came when I tracked my food expenses after a few months. To my absolute horror, I found that half of my monthly paycheck was gone on the food. On top of that, I gained a few extra pounds.
Eventually, I realized that I had to do something. Otherwise, I would only end in disaster. The simplest way to limit temptation was to uninstall the food delivery app, and I did that.
It isn’t easy to stop overspending on the things you love. You have no idea how many times I have uninstalled, installed, and uninstalled the food delivery app from my cell phone. Eventually, I had to forget the food delivery app for the sake of my financial life. Besides, I was gaining weight faster than ever. I’m sure you too would face many challenges but you have to be determined and patient. You have to curtail your overspending behavior over time and replace your bad habits with good ones.
Do you have a habit of overspending every month? Have you taken any step to stop it? Share it with all of us.
Special Thanks to Stacy at KissYourMoney for providing this post