Spending money isn’t always a bad thing, but it can take a toll on your budget and financial goals if you’re doing too much of it.
Part of any financial goal is having a proper plan of how you are going to reach that goal. This also includes recognising when you miss the mark and go off track.
The rise in the cost of living like the rise in petrol prices, food and electricity will have an effect on the wallets of South African consumers; therefore, you should not be tempted to overspend because you could find yourself in a financial crisis.
As people face tough financial times, avoid getting into further debt or falling into the debt trap. Rather find better habits that can help you stay focused and spend money with intention.
Money rates suggests these tips on how to stop yourself from overspending:
Get to know your spending triggers
It is very easy to spend money without thinking about it, spending money is one of the easiest things to do but if you want to save money instead, it can be helpful to also take a closer look at your spending habits.
A good way to get to know your spending triggers is to keep a spending diary or download a budgeting app on your phone.
In this diary or app, you will be able to record each of your shopping trips, whether in-person or online, detailing what you bought, how much you spent, the time of day and your feelings both before and after making the purchase.
Don’t store credit card details online
Most of us are guilty of the impulsive online shopping that happens in the early hours of morning when we are struggling to fall asleep. A credit card can make purchasing things online extremely easy.
Storing your banking details online could lead you into spending money you didn’t intend to if you’re charging things and not keeping track of the total.
Consider going cash-only for a month
Credit cards are convenient, it also comes with a few perks like earning points and discounts. But it’s possible that you could become too dependent on credit cards for spending money and end up with a mountain of debt.
If you don’t want to quit using your credit card altogether, consider taking a temporary break from using it for one month. During that month, commit to spending money with your debit card, checks or cash instead. This will allow you to stick to budget and purchase what is needed.
Get your friends and family on board
Your friends and family can be some of your biggest spending triggers if they encourage you to spend money unnecessarily. For example, getting invited out with friends may mean spending money on dinner, drinks or other entertainment for which you didn’t budget.
If you are serious about not overspending, then let your friends and family know that you’re making an effort to save money instead. Rather than going along with expensive outings, suggest alternative ways to spend time together that don’t require you to spend a lot of money or any money at all.
Also see: How to overcome a lifestyle creep
