Do you need to go on a spending diet? Many people turn to shopping in the same way they turn to food. They use it as a means to feel happy, in control, valuable and to relieve stress. Unfortunately, shopping and spending can become a vicious circle. You spend to feel better, then the bills come and you feel bad again. Then you go shopping. Here are a few tips to help control overspending.
#1 Accept and acknowledge you have a spending problem – It may sound trite, but admitting you have a problem really is quite important. It’s the first step to controlling it. If there is someone you can confide in, admit your problem to them. If not, then take the time to admit it to yourself. Try to determine what causes your overspending. What triggers the splurges?
#2 Replacement – One of the reasons many diets don’t work is because they’re restrictive. They ask for an immediate elimination of all of the foods you’ve normally been consuming. It’s generally too much for a person to handle. So unless you’re great at quitting something cold turkey, don’t try to just quit spending. It won’t work.
Instead, look to replace your spending habit with other habits. Ideally, find something you love to do. For example, do you love to read? Do you love to take photographs, dance, play sports? Find a new hobby or pursue a passion. When your time is filled with joyous activities, not only will you not have time to overspend, you’ll also be happy and not inclined to shop for the sake of shopping.
#3 Recruit a friend – Most successful diet programs incorporate peer support. This works for overspending too. Grab a friend who suffers from the same affliction you do. Create a spending diet and support each other. When you’re inclined to go shopping or hop online for some late night browsing, call your friend instead.
#4 Journal your expenses – Journaling what you spend money on for three to four weeks will be an eye-opening experience. You’re going to be amazed at how much you spend. Keep track of every nickel. Use a notebook or journal or an iPhone/iPod application to track your spending. There are many free budgeting apps available. Simply knowing how much you’re spending helps you regain control.
#5 Budget – You knew it was coming, right? You knew we were going to tell you to budget. However, unlike other budgets, this one asks you to make room for some luxury spending. Why? Because if you create a budget that is so tight, you’re going to rebel.
Again, it’s like a restrictive diet. Everyone needs to be allowed to eat a cookie from time to time. Budget in that cookie! Allow yourself a manicure if that’s important to you, or a new outfit each month. Because you’ve been tracking your spending, you’ll be able to create a realistic dollar amount for your luxury spending allowance.
Overspending is often about a lot of things at once. Perhaps it’s become a habit. Perhaps you’re using it as a coping mechanism or perhaps you simply just don’t know how much you’re actually spending. Follow these five tips and get control over your spending.
