Friday, February 17, 2012
How to Overcome the Desire to Spend More Than What You Have
People who fail to live within their means typically spend years trying to dig themselves out of financial holes. Gaining control over your finances means overcoming the desire to spend more money than you actually have in your bank account. A person who is in control of their spending habits has the ability to save money for emergencies, invest for the long-term and retire with enough money to live. People who are accustomed to spending more than they have must overcome the desire through discipline and dedication to creating new, healthy spending habits.
These six tips are excerpted from SavingUp.com.au, where you can find many more ways to save money at home, in business, when travelling, etc.
1. Avoid impulsive spending – Shopping on an impulse is a sure way to spend money that you did not intend to spend. To curb your desire for impulsive spending, always create a list of the items you need and take the list with you when shopping. Avoid buying things you do not need simply because they are on sale.
2. Pay for items with cash - Paying for items with cash helps you to deal with the money you have at the present time. Many credit cards come with high interest rates and penalties for missing payments, paying late and going over your spending limit. Many people find themselves in credit card debt for many years because they are only able to pay the minimum amount due. Severely restricting your credit card use will help you avoid overspending.
3. Buy store brands and use coupons – Shopping for groceries is a necessary expense but you can avoid spending money you don’t have by buying store brand products and using coupons for items you buy on a regular basis. Store brand products cost less than name brand products, which saves you money on your grocery bill. You can check your weekly paper and advertisements that come in the mail for coupons to products that you continually use.
4. Stop trying to keep up with the latest fads – Almost every month it seems a new gadget or car is available for consumers to buy. Desiring the newest music player with the latest gadgets is normal, but also unwise if you have a music player that works fine. Avoid spending money on the latest fads. Keeping your car as long as possible is another sure way to save money. Buying a new car simply cost too much money and the car only depreciates in value. Invest in the maintenance of your current car, and you will be able to keep it running well for many years.
5. Eat out less and prepare your lunch – Another expense that causes people to spend more than what they have is eating out for dinner or lunch during work. It is easy to use your credit card when eating out, with the thought that you will pay for it later. Preparing a lunch to take to work and cooking in the evenings will save you a lot of money in the long run.
6. Change your mindset – Your spending habits are reflection of how you view money. To overcome the desire to spend more than what you have, you need to define your short-term and long-term financial goals, create a plan and stick with it. Wealthy people often delay instant gratification to establish a nest egg for the future.