We all have them. Those little things that we love to buy that totally blow our budgets. Some people love buying shoes and clothes. For others, the latest technological gadgets are their downfall. Whatever your financial demon, overcoming it and learning to control is essential for financial freedom.
Have you ever looked at your monthly credit card statement only to be amazed that you spent thousands on particular item? This is a good way to know that you have a problem.
Often, when people recognize they have these financial demons, they decide to eliminate them cold turkey. Not a good idea. You buy these things because they matter to you. Cutting them out of your life entirely will only lead to frustration and possibly the eventual abandonment of your financial goals.
Of course, you can’t just spend all of your money on these pleasures like you have been doing. The trick is to find a balance between buying every item that you want and buying nothing.
Finding a balance can be tricky at first. Spending money can almost become an addiction. Having the latest and greatest things can make you feel better about yourself. A new purchase can make a bad day seem a little less miserable. To successfully break your habit of overspending, you need to establish a plan.
Learn how to overcome these demons using these three simple tips.
You Better Recognize
The best way to overcome your spending demons is to first recognize them. A little bit of this recognition probably occurs each month as you look at your bank statements. Did I really spend that much money? It can also come through contemplation. Think about where you spend your money and more importantly why. Figure out a reasonable budget for these favorite things.
A great way to start controlling your spending demons is to start carrying cash. You don’t need to use cash for all of your purchases, just for the ones where you tend to overspend. Each check, take out your decided budget from the bank and then use this money to buy whatever it is that you can’t resist. Everyone’s purchases will be different. If you have the cash, don’t feel bad about your purchases. When the money is gone, wait to buy the item you are wanting until the next check.
Walk It Out
If you see something you feel you really need to have, walk around the store for 15-20 min. Eventually that feeling will wear off and you will have a clear head to make the decision on if you need it or not. If you do need it and don’t have the money available right then, the item will still be there next week.
Financial freedom isn’t about never getting to have the things you love. It’s all about controlling yourself so that you can have these things more often and without guilt. These three tips will get you started and along the way, you may find some ideas of your own.
Do you have any great ways to overcome these financial demons?