The Right Ways To Keep From Overspending

Are you an over-spender? Do you pay only the minimum on your credit cards every month? Are you living paycheck to paycheck, despite the fact that you make a decent living? If so, then you may need some overspending help. There are lots of little steps you can take to help you get rid of your overspending ways. The next time you’re frustrated at the lack of money in your wallet, consider these five options to help you manage your spending habits.

Make a Budget

It’s the first step and the one that many people find to be the hardest. However, it’s a lot easier than you may think. Simply create a spreadsheet and start by adding up your pay stubs. You’ll need a concrete idea of how much you actually bring in every month. Then, gather all your bills, making sure to include even the smallest of monthly payments. Add up your other spending (like food, entertainment, gas, etc.) and list it all together on your spreadsheet. You can use something like Excel, or even just a simple piece of paper, and it’s all you need to get an idea of where your money is going every month.

Go Cash

Some people have found a lot of success by switching to a cash-only method of budgeting. You simply give yourself a cash allowance each week and when you’re out of cash, you’re done spending for the week. You can organize your weekly allowance with a bunch of envelopes, simply putting a small amount in each one as the set spending limit for that item. You can list envelopes with food, gas, entertainment or other spending needs, and each envelope will help you keep a handle on your spending.

Set Financial Goals

Do you have any financial goals? Have you started a savings account yet? These are some important steps to help you get your spending under control. Consider making some financial goals to help you keep your spending in check. Try setting a goal like saving $1,000 in an emergency bank account, or deciding to bring your lunch to work every day for a week, or sticking to a cash budget for two weeks. These small steps will go a long way to helping you with your spending habits.

Zero Account Balances

Many over-spenders think “If I have it, then I can spend it,” so this method is a great way to curb that mindset. You’ll deposit your paycheck into your checking account every month as normal, but then you’ll spend some time telling every dollar where to go, keeping cash out for your weekly spending and then putting every last dollar into another account like a retirement plan or savings plan. You’re done when your checking account is back to a zero balance.

You Deserve A Reward

It’s ok to give yourself a little reward every now and then. If you’re on a super strict diet then you know you’ll be tempted to splurge, but if you know there’s a reward coming when you reach a certain goal, you’ll be more likely to stick to your budget. Offer yourself a little spending once you reach your goals, reward your good behavior with something you love, and you’ll continue with those good behaviors for years to come.

Deborah Flomberg is a theater professional, freelance writer and Denver native. Her work can be found at Examiner.com.