How to Quit Overspending

You know you're in financial trouble. The bills keep piling up and the income just doesn't stretch to cover it all. Here are some ways to stop the bleeding.

Instructions

Difficulty: Challenging

Things You’ll Need:

• the desire to change
• cooperation of other members of the household

1. Stop eating out. Now! You'll be amazed at how much this costs you each month. Start taking a sandwich or something to pop into the microwave at work. Stock your cupboards at home with easy-to-make meals so you won't be tempted to stop at a restaurant on the way home.
2. Make a list of monthly expenses (cell phone, regular phone, TIVO, cable, rent/mortgage, water, electricity, etc.). Mark the ones with a highlighter that are WANTS rather than NEEDS. Example: You need to pay your mortgage. You want to have extended cable TV.
   Drop the TIVO for several months. You'll miss it, but remember the bill collectors are a pain too.
3. Quit reading the ad sections that come in the Sunday papers. These create the urge to buy things that you don't really need. Cutting down the amount of time spent watching TV helps too. You are bombarded with ads there.
4. Take a spending break. Choose a time period, maybe 2 weeks or a month. Don't buy anything during that time (except food). No new clothes, no hobby supplies, no little gifts for yourself, etc. You may be so impressed with the results, that you extend it to a second month.
5. Pull out things you already have and make use of them. Instead of buying new clothes, mend the ones without buttons or take up a drooping hem. Get the old toys out of the back of the closet for the kids. If they haven't seen them for awhile, they'll seem like new to them.
6. Instead of shopping when you're bored, get out and walk or ride your bike or have friends over to play board games or cards.
7. Instead of buying books and magazines or renting movies, start using the public library. It's free!
8. Chart how much money you're saving on this Money Diet. Give yourself a gold star every time you think of a new way to not spend.
9. Apply the newly saved money onto your high-interest debts. Getting those paid down will make you feel more confident that you can live within your means.

Tips & Warnings

• To avoid feeling deprived, make a game of being thrifty. Get the family involved in devising new ways to balance the budget.