How to Stop Spending So Much Money

Spending may be fun at the time but later bring repercussions.

When shopping becomes a form of entertainment, that is one sign you are spending needlessly and perhaps excessively. Spending should be viewed as a chore and necessity, not as a social outing. Wealth creation seldom happens by chance; it is usually the result of making educated choices regarding spending, saving and investing. Thus, it is vital to cut pointless spending that will keep you from attaining financial freedom and perhaps even burying you in debt.

Instructions

1. Remove yourself from temptation. Just as a recovering alcoholic should avoid bars, so should you not frequent malls.

2. Keep a spending journal for a twofold purpose. First, when you are tempted to go shopping, write down why. Chronicle your feelings about adding more debt to your credit card and what is motivating you to spend more. Putting your thoughts on paper has a way of making you reflect upon your actions. Second, track your daily spending, how much you are spending and for what.

3. Ask yourself why before making any purchase. For example, if you are tempted to buy a home gym, be honest with yourself. Perhaps in your heart of hearts, you realize it is preferable to take some exercise baby steps before committing yourself to 10 easy payments of $30.

4. Give yourself a timeout when considering a purchase. Make it a habit to wait at least 24 hours before buying anything, no matter the size.

5. Remember that each time you use your credit card, you are getting a loan. Thus, wait at least 24 hours before buying anything, no matter the size.

6. Go cold turkey, living without your credit card for a few months at a time.You will be amazed at the amount of money you will save.

7. Stay far away from friends or relatives who encourage you to spend and help you rationalize your actions. Their motto is "shop till you drop” and they cannot wait to tell you about the latest sale. They tend to say things like, “You work hard for your money so treat yourself” or “You only live once." It is okay to treat yourself but do not go overboard. When it comes to shopping, separate yourself from people who get a high from shopping and spending too much money. You can love them but do not go shopping with them.

8. Clean out your house if you really want to stop spending too much money. Take an inventory of all your belongings and you will realize that you have enough stuff. This should stop you from going on a shopping spree. Stop participating in an activity that requires spending money you do not have.

9. Learn to say no when it comes to spending unnecessary money. No one should be able to make you spend your money.

Tips & Warnings

• Do not make shopping your life. Find constructive things to do with your money that benefits you, whether saving, investing or giving some to charities.

• Do not depend on spending money and senseless shopping to make you happy. When you are dependent, you lack control. Regain your independence and gain control of your life.

• Do not eat, hang out or meet your girlfriends at the mall because it will lead to spending you will regret.

References

• PT Money: The Best Way to Stop Mindless Spending