Are you one of those people who have a difficult time keeping the cash in their wallet – you go to the store intending to buy one or two things and walk out with twenty? If you’re a chronic over-spender, here are a few tips and tricks on how to discourage yourself from the habit. It won’t always be easy, but with a good dose of intentionality you will succeed.
A few years ago I was the typical over-spender. Fast food restaurants knew what I was going to order before I began to speak – now that’s sad. I always had to have the latest and greatest gizmos, and wouldn’t give much thought to laying down multiple $100 bills on the counter.
Something had to change. I was losing money left and right. Marriage thankfully woke me up to the realm of responsibility, and I realized I had a problem that needed correcting fast!
Recognize the Problem and the Consequences.
It’s been said that the first step to solving a problem is recognizing that there is one. If you’re not sure if you’re overspending in a certain area, it helps to compare your spending with those who hold to a firm budget. Chances are you know a few people who are watching their money and can give you a good rule of thumb for spending on a certain category. Get the conversation started and you’ll find plenty of room for improvement!
People can go decades without raising their net worth due to overspending. Buying things you don’t really need can kill your chances of success, and ultimately keep you broke and desperate. Who wants to merely get by in life? It’s much better to thrive!
Imagine a Better Future.
Second, it is extremely helpful to envision what your future might be like if you curbed your spending habit. Imagine how much more you’d save for retirement, your children’s college education, and how much more you’d be able to give!
Trust me, you’re not going to stop yourself from overspending if you can’t imagine a better future. You’re not stuck, you can develop restraint and hold yourself to a higher standard!
Begin a Strict Envelope Budgeting System.
In this electronic age, the thought of carrying around flimsy envelopes and loose change is far from appealing. However, I can tell you from experience that the old school envelope budgeting system truly works. Why? Having a tangible, visible reminder of how much you have left to spend compels you to save your cash. Not only that, but sometimes you might forget your fun money envelope at home. Frustrating? Yes. A money saver? No doubt!
If you’re new to the envelope budgeting system, Bob has a great read about getting started.
Create Your Shopping List!
Remember, it is important to be intentional about your spending. One way to do this is to make a shopping list at home before you enter the marketplace!
Retail stores are purposefully designed to promote sales. By making a list before you step foot in the door you can have more willpower to hold to your commitments. Don’t let the flashy advertisements steal your attention! Stick to the list and you’ll save loads of cash.
Repeat, Repeat, Repeat!
It’s all about persistence and consistency. Sticking to the plan will allow you to build more wealth than you might imagine. After a few years of saving money, paying off your debt, and building wealth, you’ll find good reason to hold onto this methodology.
Today, I believe I have effectively curbed my overspending. We’ve come a long way, and I believe you can too! Whatever you do, don’t lose hope. I believe that by recognizing trouble spots, imagining a brighter future, holding to timeless money-saving principles, and proceeding with great intensity will vastly improve your finances. Are you ready for something new?
What are some ways you cut down on overspending? At what times do you feel the weakest and how do you stay strong in the midst of that weakness? We’ll meet you in the comments!
Photo by Pieter Musterd (busy)
{ 8 comments… read them below or add one }
If you really must be separated from your money, then find something more enduring to do with it. Know a friend that could use some cash and they never ask for it or complain about it?, throw them a 100 dollar bill. That way, the money won’t be burning a hole in your pocket and things in your budget will eventually level out.
Good solid advice for people who have trouble keeping money from flying out of their pockets. Simple and to the point.
Understand the problem. Imagine a better future. Create the budget. Create a list to stick to which is basically a plan that will help you get to a better future one step at a time.
In fact, I even think that imagining a better future will help with the budget and the list because you’re striving to succeed at becoming a better you and are creating a new way of living your own life.
We currently are in debt and are getting it taken care of slowly but surely. My girlfriend is working full time and I’m a stay-at-home dad and am always looking for ways to earn money while staying at home.
We currently use YNAB and it’s helped us in the past greatly and continues to do so today.
Good advice here, thanks!
My wife and I are in the process of reducing our spending drastically, as we have been chronic overspenders for years. The thing about most overspenders like us is that we just didn’t think about it–and that is the problem. If we don’t think about why we are forking over the cash, then it won’t matter, and we’ll part with our money for whatever useless/unneeded “thing” we are compulsively purchasing. Luckily we have realized that we both have a problem with not thinking about our spending, and we are adjusting our habits. We are going to try the envelope system, sounds interesting.
The envelope system is a winner. I do it with grocery shopping. Instead of carrying around change for weeks on end I put it in a jar when I get home. It becomes our individual mad money during vacation.
The second thing. We check our budget before shopping for something in particular, and write down an expense right after we purchase. The constant reminder of balance available really makes us tow the line. If a category goes over, we physically write the amount transferred from another budgeted area. If there is a frequent problem in a particular category (like car repairs on an older vehicle) we know how to reapportion our finances the next time we do up the budget.
What a wonderful article! MY family started using the envelope system many years ago when my husband was on staff at a church and finances were tight. It works wonderfully! Overspending hasn’t been an issue since we started using the envelopes. If there isn’t enough money in the envelope, you simply don’t overspend! This year, our family of 5 is intentionally living on minimum wage to spread the message of contentment. Our envelopes are much thinner now, but God is making the money spread to provide all of our needs! You can live a happy, satisfying life while spending less!
I’m so glad you wrote this post. I was just telling myself I needed to get serious about paying off some lingering credit card debt and I wanted to do something radical like make a large payment, but I am going to have to cut back from daily spending dramatically. I know I have the money available to make larger payments, but my daily frivolous spending habits make it hard to see where that money will come from. This is just the post I needed.
I’m pleased that this article was well received! It’s great to hear that the envelope system is still alive and well. For those of you in debt and climbing their way out: DON’T GIVE UP! It’s so worth the effort. God bless you all!
You guys are all good! Praise God for your lives! I would recommend this post to some of the friends and surely this would really help us. By now, I am into saving money to buy a laptop that I need to work online, this serves as my motivation not to waste money for many things that are not important. I always ask the help of God that He may help me with it.