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Stop Overspending! What Are Your Spending Triggers?

4 couple arguing over moneyHave you ever grimaced at how much you spent overnight?

Been guilty about it and swear that you will never do that ever again, just to realize that you did it all over again soon enough?

Good news! You are not alone. Many Americans face this issue at varying intensities.

The simple reason of overspending is that it is simply difficult to stay onto the budget.

The real problem arises if you are a chronic over spender who starts each month with a resolution and tries to stick on, but in the end, have a detailed bill amount that is as big as ever.

 

What Are Typical Symptoms Of Overspending?

Overspending is one of the learned behaviors. It could result from emotional spending triggers, family inherited habits or simply due to improved lifestyle and income.

 

Emotional spending definition states overspending is the indulgence in spending extraordinarily that brings about a feeling of satisfaction to one’s mood. Simply stated, when you are happy, depressed or bored, you want to go shopping, dine or do expensive activities.

 

Often, the person involved does not realize until late. Hence, here is a guide to analyze if you spend too much.

 

Fluctuating budget

If you spend much more than you applied a budget to, such as in groceries, clothing, accessories, etc., you end up spending more which comes from your money reserve. Simply stated, if you spend $500 over an estimated &$200 for groceries, you are overspending.

 

Maxed credit cards

If you are resorting to your credit card often, you have an unsustainable lifestyle. Your interests add up for fueling your expenditure.

[PDF]maxed out: the relationship between credit card debt

 

View More: http://elizabethconleyphoto.pass.us/the-lewiesPaying credit card minimum

When you purchase something with a high interest rate and takes a longer time to pay-off, you are overspending. The capability of assuming long-term debt for something that is out-of-budget is a typical sign.

 

Credit card debt exceeds monthly income

This is a logical sign. If you have more to fill out in credit card than you earn monthly, you definitely are addicted to one or more money spending triggers.

 

Neglect piling bills and splurge

Are you among those who rush for fun items such as clothing, vacations, etc., before settling your monthly fixed expenses? Most probably you have an impaired psychology of spending habits.

 

Increasing expenses with income

This happens too many. If you end up eating more of what you get, you certainly have a lifestyle that is set-up based on your income, not your needs.

 

You own more stuff than bank account

If you realize that you have more designer stuff filling your house and bigger dent in your bank account, you are doing beyond your limits.

 

Resistance to change

For some people, spending money sends an emotional spending trigger that most probably they deny. It is a serious path that offer temporary satisfaction. Changes are scary. If you experience any of these symptoms, yet deny it, you are overspending.

 

What Are The Common Spending Triggers?

There could be variety of money spending triggers which could be traced as psychological or emotional spending triggers. If you are on the way to sabotaging your budget, halt! Analyze what triggers your feeling for buying something that you don’t need or can postpone buying.

 

It is easy to be emotionally challenged but the key to your financial happiness is in your hands. Here are few strategies for analyzing what exactly triggers your overspending habit.

 

  • The Deal: When you march into the store to find out that the dress you loved is on markdown. You are tempted to the core and is convinced that this is your moment. You find your share of happiness. This creates a sense of euphoria. Retailers know the facts and they use these tactics to lure shoppers.
  • Splurge for new purchase: When you buy a new home you have to decorate it with all premium stuff. If you have the overwhelming desire to change anything and everything into new for your new home, which may not be necessarily required, you are triggered to spend more.
  • The Bonuses: When you get cash all-of-a-sudden via incentives, tax returns, bonuses, etc., you immediately remember that you have needs that remain unfulfilled. Instead of being wise and adding it to savings, you go for luxuries.
  • The Appearance: When you want to go for an interview, you have to impress your interviewers. The first idea is to look good for which many shell out hundreds of dollars that may not be necessary. But desperate job hunters often do this and more.
  • Just to fit into the group: When you have friends from comparatively upper class, you have the urge to keep up with them and doesn’t want to be the cheapskate in the group. So you want a lifestyle that can match up with these Jones which will alter your psychology of spending habits.
  • The Vacations: A well-planned vacation is fun. But if you just plan for the stay and airfare, you end up spending money out-of-budget for other expenses.
  • Celebrations: Spending money over celebrations is a way of expressing how much you care for others. But that comes at a cost and often becomes out-of-budget when you want to do outrageous things without considering your pocket.
  • Just-to-suit-the-mood: Some people splurge just to cope-up with a crummy day and some to celebrate success. Whatever the reason be, your act of spending can be traced back to your mood. If you end up spending too much just to suit your mood, you are in deeper pits.

 

4 overspending-triggers woman shoppingIdeally What Can Be Done To Curtail Spending Triggers?

You feel great satisfaction when you spend money over something even if deep within you know you are taking the door down to debt. It is this emotional feeling that is going to walk you towards ultimate breakdown.

A well-thought out plan and strict adherence to it can save you to great extent. Of course, a pat-on-the-back and at times, a friendly hand can stop you from being over indulgent. Worst of all, old habits cannot be broken overnight.

Now that we know what triggers out-of-bound spending, here are few things that can be done to make a worse situation better.

 

  • As per the psychology of saving money, you are tactfully lured into the trap of deductions and reductions by retailers all over. Whenever you are attracted to a deal, think twice if you really need the stuff and if your pocket allows such a purchase. If it dips more into your credit card, ensure that the buy is not quite attractive for your situation.
  • When you purchase things for your new home, write down the things that can be transferred. Also, get to know what you most require that need to be purchased. Decide on what you should buy immediately and what can wait can save huge dents in your budget.
  • When you get sudden cash, plan for savings or for retirements. Ideally, if intended to, make 10% of it as your fun expenditure and the rest goes for savings.
  • It is not necessary to wear an Armani to impress your interviewers. A decent pair of formals will do the trick. Trust yourself, respect yourself and carry yourself well. Most job hunt expenses are tax deductible, hence check with your accountant. Also, have an eye on your budget before going on for a high-end networking expenses.
  • When it comes to keeping up with friends, choose wisely. Befriend those who have a mind towards saving a penny or two here and there. Even if you want to keep up with your upper strata friends, get along with them for not-so-expensive deals such as hiking or a coffee.
  • Vacations on a state-of-the-art resort or the dinners at fancy restaurants should all be planned beforehand. Do your homework while you plan for a vacation getaway. Always check the cost beforehand so as not to end up struck by a lightning bill.
  • When you want to show you care by lavishing gifts or a luxurious celebration, plan ahead. If you plan well before a function you can start saving few dollars every now and then to make the dream come true. If you do not have the time and strictly on budget, make other choices than something that involves much money such as volunteering your services for a function, making favorite dishes for a loved one, etc.
  • Finally, if you want to spend just to feel good, whip yourself to sustain reasonability. If you spend without tearing your pocket, that is justifiable. Or else, treat your urges with a non-financial reward such as a home movie time, a bowl of your favorite ice cream or so.

 

Tips To Keep Check On Overspending

 

The first step in curtailing the disorder of overspending is to identify that you have problem. Once you identify, accept the reality and decide to work towards bettering the situation. Ask for help, if you find that an extra set of hands can give you better grip over your budget.

 

It is always good to get like-minded friends involved or involving your partner or immediate family to get a hold of the situation. Make an effort to consciously change your habits and curtail or deviate your reasons for making over expenditure a habit. Here are few tips that can help you overcome overspending.

 

Minimize ATM use

One way to curtail and keep a better track of expenditure is to use solid cash. When it is in cash, it oozes the immense power which makes to resist the feeling of letting go. Hit the ATM on Sunday’s and keep only a week worth cash handy. This will help keep within the limits and stop over spending.

 

Adopt a reasonable lifestyle

Normally, a financially smart person would keep a reserve of at least six months savings for rainy day. Make a habit of living moderately even when you are doing well or worse. One way is to have an automatic transfer of a fixed amount every month to your savings which will act as buffer. You never end up touching it unless there is an emergency.

 

Leave the past and live the present

If you had a poor past with few people to guide you on financial front, you might end up spending more to compensate. Instead, seek out the right path as an adult and try to manage your finances better.

 

Appearance may not matter as you mature

When you chase the Jones, they might be chasing you, thus ending up in perpetual overspending. Ironical it is, but if you focus on what you are and what you need, you could avoid this situation.

 

Get like-minded friends

Peer pressure makes you end up paying for your insecurities. It is better to have like-minded friends who thinks of saving money. Or else, have fun with them in ways that does not involve much spending. The best way is to surround yourself with friends who respect your decision in curtailing spending habits.

 

Gather emotional support

Shopping is a temporary distraction to those with depression or mood swings. Stop using shopping as a therapy and get help from a friend or a professional for your deep seated problems.

 

Learn to say No

Kids allowance is a great way of getting them what they want and teaching them value of money. Partners should plan their monthly finance together and keep savings. This might also help you save some for your indulgences within the budget.

 

Define your goals

Analyze your goals and the path. You could make a financial plan yourself or with professional help. This will keep you in track and give as fairly good visual of your future.

 

The Verdict

The psychology of spending money cannot be changed in a day or two. It takes its own course to eliminate money spending triggers and is possible with adequate determination and support. Work your way towards your goals and motivate yourself to making the first step. Commitment and determination will take you to your financial freedom. It is slow, but being steady leads to success.

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