It is no secret that spending could turn into an addiction if it not regulated properly. This is an addiction that starts when we suddenly have access to a large amount of money and have no reason to control how much we spend. However, with time this simple addiction can progress into something that can cripple you financially. Like any other addiction, overspending can be stopped with proper discipline. The first step to doing so is to make yourself aware that you are spending way too much than that is healthy for you and your bank account.
Why are you Spending so much?
If you have all the money in the world to spend you wouldn’t be concerned about spending too much. There wouldn’t be reasons for you to worry. However, if you are someone who does not have access to unlimited money, there should be a reason why you are spending without any caution.
Why is your money being spent on buying clothes, food and electronics that are not really necessary for your survival? Why isn’t all your earnings going into an account that gives the best term deposit rates in Melbourne instead?
Most times the answer is very simple. You are ignorant about how much you spend until someone else points it out to you. You don’t think about money as a limited resource. Instead you have convinced yourself that there is always going to be enough money for you. It is only when your card is rejected or your check bounces that you realize how wrong you’ve been all this while.
Another reason for overspending could be your need to make an impression on other people. The opinion of others matter a great deal to certain individuals. They would buy the best of everything regardless of their affordability, simply to impress someone else.
How can you Stop?
You need to come up with a plan. If it is not possible for you to do this on your own, request the help of someone close to you. This individual should be someone who is fully aware of your spending habits.
Your plan should include measures to block every possibility you have to splurge your money on unnecessary things and also ways to keep the money you save in the process in some place safe.
The cliché move of getting rid of your credit and debit cards actually does work. These electronic cards that have made our lives so much easier are also the reason most of us spend more than we could afford. Therefore, step one would definitely be cancelling the cards and throwing them away.
The next step should involve developing the concept of saving before spending. Once you get your salary to your hand, the first step would be to put a percentage of it in a bank or some sort of financial institution. After a few months, you could use up your savings and open a term account that will give you a better interest rate. This way you will not just be saving, but also making money in the process.
However, the amount you save should be a considerable amount. Saving just 10% of your salary is not going to mean anything because you have enough money with you that will help exercise your spending habits. Decide on this amount by carefully considering all the expenditure you have for the month. If it is a standard amount that you hope to purchase every month, you could make arrangements for your workplace or financial service provider to transfer that amount to a different account. This way, you don’t have to deal with the whole process of letting your money go.
How do you not relapse?
Stay away from anything that makes you want to spend. This includes over expensive restaurants, fashion stores and electronic stores. Each addict’s poison is different and only the addict himself knows what exactly it is. Therefore, you will need to make a conscious effort to stay away from anything that provokes you to go back to your old habit. With time, you will be able to resist these situations and have the chance to resume your normal lifestyle again.
Accepting, intervening and maintaining are the three main steps included in getting over your spending addiction. If executed properly, this plan could actually turn your life around for the better.