3 Ways To Get Over Your Financial Demons

Magnera Human Skull 2 

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. 

Cash Out

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? 

photo credit: L.C.Nøttaasen 

 

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{ 5 comments… read them below or add one }

Red

First off, the picture on this post is SCARRRYYYY! ;)

Good tips, but I would add that a little research goes a long way. My addiction before I became addicted to paying off debt was DVDs. I would buy DVDs every pay period, usually 12-15 at a time! A little research told me that 1) if I REALLY couldn’t live without all those DVDs, I could RENT from Red Box or BlockBuster and 2) much to my surprise, the local library has movies that have been released within the last year! I’m able to go to the library, browse the shelves and leave with 2-3 movies for free! I can keep them for a week, the same length you get out of a BlockBuster rental.

If your obsession is designer purses, there’s a program called “Bag Borrow or Steal.” For a monthly fee, you can rent a designer bag instead of spending hundreds to purchase one.

It’s all about the research.

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Kevin

yea I wasn’t sure if the picture was appropriate but I thought it would get some attention :)
Yea research is a good point. I used to buy books all of the time from bookstores, now I buy them from half.com and then sell them back when I’m done if it’s worth it.
That has helped me save a ton of money.

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Jan K.

Nice tips Kevin,

glad I have started the ecourse, lot of interesting reading before me, I feel that now.

About mine demons? It used to be technology gadgets, cellphones,….etc. … but it’s been about 1 and half year that I started to read blogs dedicated to minimalism, and it transformed my thinking. So I believe I am not so addicted to consumerism anymore.

On the other hand, I am nowadays quite hooked on reading a books,… that’s the biggest demon nowadays, so I am quite thankful for the tip about reselling the books back.

Now, moving on other topic in the ecourse.

Reply

Kevin

Great!! I’m happy you’re enjoying the eCourse. Books are a double edge sword because they are a great education but they can add up to a pretty penny.

Reply

jody wissing

This is great! It’s so true when you look at how much you paid for something you put on credit. I’m doing a year of no retail shopping and blogging it.

Thanks for your blog post! And the creepy pic. ;)

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