How are your personal financial habits? Wouldn’t it be great if you never spent a dime out of place? Most people think of this as a distant dream. But it can be closer to reality.
Terrible spending habits permeate every part of our lives. Some of us have spending vices that have quite a grip on us and continually test our will power. Bad financial habits are dreadful things to have but you can certainly get rid of them –- if you know how to spot them.
I’d like to share these ten warning signs to watch out for, which point towards too much personal spending. Please feel free to add on to this list in our comments!
Spending Too Much Money? 10 Warning Signs To Watch Out For
- Buying things you don’t need. How many things do you have in your home that you don’t actually need? Why not sell them, and get some money back and invest it? Don’t keep buying stuff you have no need or use for. I usually sell my stuff through Craigslist or a home consignment store. Or you can turn to these garage sale tips to determine how you can pick up extra cash by getting rid of stuff you no longer need.
- Spending more than you need to on a daily basis. Keep track of your spending. Don’t buy things for the sake of it (refer to point one). Think about how much you could save by simply spending less than we actually do, each day!
- Impulsive spending. Another ugly monster that can grab you at any time. Whenever you get struck by it, count to ten, walk out of the shop and give yourself time to cool down. Most of the time, you will find that the impulse goes away and you no longer have the urge to buy whatever it is that caught your attention initially. But even if you find yourself succumbing to shopping temptations, you can still recover from a huge impulse buy!
- Not having a budget. Budget? What’s a budget? If you’ve never had one before, start using one now. It’s the only way you can truly be in control of your finances.
- Forgetting to pay bills on time. This is a dreadful way of losing money for no reason. Set up bills on direct debit. Put reminders or alarms in your cell phone to pay them a few days before they are due. Do whatever you have to do so that you don’t pay unnecessary charges.
- Emotional spending. Hungry? Don’t go food shopping just yet. Eat something first and spend less. Bored? Don’t go shopping unless it’s without your wallet!
- Loving your credit cards too much. If you know you can’t be trusted with them, don’t go out with them. Use cash more. Or use prepaid debit cards. These days, there are such things as debit rewards cards which allow you to earn rewards on a debit card (one that won’t cause you to build up debt). It’s a lot harder to spend money when you know you have to part with it straight away.
- Succumbing to sales. Sales are there to tempt you. They are there to try and get you to break rules 1, 2, 3, 5, 6 and 7 above. Resist temptation and carry on walking.
- Succumbing to “pay no money now” deals. You may not pay now, but you certainly will later. And it will probably cost you more as well. Would you buy that same item if you had to pay for it right away?
- Not paying yourself first. What does this mean? If you have a job, you’ll get paid, yes? Certainly you will, but before you start making use of your income and paying others your hard-earned money, think about “paying yourself first” as well. If you don’t, you may find that you have no savings to fall back on. Here are some great techniques on paying yourself first.
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