Have 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.
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.
Paying 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.
Ideally 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.
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 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.