With the rising financial crunch, many people find it difficult to maintain a good balance between their saving and expenditure. It is not because they lack the knowledge on how to spend wisely but often due to their lack of self-control. You could leave your home and head to the shopping mall with the intention of buying a gift card for your nephew, and by the time you walk out, you have a new pair of the latest Ugg boots for yourself. Though you always try to budget and swear that you will not go off the plan, still you may end up spending money that was not planned for.
Keeping these few tips up your sleeves can help refrain from those spending sprees that are a nightmare to your finances:
Do not Shop When you Feel Emotional
If you are angry, sad, stressed, bored, frustrated or just having a bad day, then it would be nice if you keep off from shopping. During those times you are not in your best mood, you are more likely to spend more. It is usually out of emotion and not because you need the product. Instead of going for shopping when you feel stressed, try something that will raise your spirit. You might want to take a walk in the closest park, work out in the gym, or enjoy a warm bath in the sun. Similarly, you can invite your friend and have a talk. The essence is to take your mind off the issue of going to shop.
Avoid Getting Carried Away by those Enticing Ads
One main reason, which compels people to spend, is the effects the ads bring into mind. The deals offered by reward credit cards can be so tempting. The ads make you believe that you are buying a product at the cheapest price. It is that notion that you are purchasing a priceless product, which tempts you, go for that product.
Try not to Keep up with Friends and Family members in Terms of Spending
It might not have occurred to you that sometimes you tend to buy something because you have seen your neighbor or friend has one. If you try to keep up with them, it could trigger an emotional spending that is not healthy for your finances. You may increase your spending simply because you want to look like them or show that you have money like them yet you do not know how much they really earn. It is essential that you learn to be comfortable with what you have, and if at all you have to spend, ensure it is out of a plan.
Stop Buying Things Simply Because you Are in a Store.
Before you purchase anything, ensure that you had planned for it. Just because you are in a store or online, does not mean you have to purchase. Consider the window-shopping and leave that purchasing date for next time.
Use Cash Instead of your Credit Card.
People are lured by the money in their plastic chips to spend more than intended. If you have a habit of swapping your card everywhere you go, it would be better if you only carry cash for the intended product and leave the card at home.
There are many ways you can minimize overspending and emotional spending but the above-mentioned tips can assist you in cutting back on your spending.