How To Stop Spending Money-Simple Methods – these are simple and doable…just get started…
These simple methods are probably not that easy for everyone, especially in these hard times for many individuals. The first decision however on how to stop spending money comes with a commitment from yourself that it is necessary. Your mindset and habits must change.
Everyone knows however that the most common knowledge is, “If you stop spending, you will have a better bottom line at the end of each month. We know that is not always easy to change habits.
Just so you know: I have worked with many clients who decided they want to purchase a home. Many I had to decline their applications and could not approve their loan because of their spending habits.
You Cannot Have You Cake And Eat It Too
If you want to stop spending you must think about your budget, how much money you have coming in, and how much is going out monthly. The bottom line is if you want to stop unnecessary expenditures, you must decide what is absolutely mandatory and/or needed for a financially healthy lifestyle.
It is evident that if you are trying to save and know that you are spending over and above it is up to you, to cut your spending. You cannot have life both ways. If you want to save and also live a luxurious lifestyle, then it is evident that you possibly need to make more money.
Your Money Mindset For How To Stop Spending Money-Simples Methods
It takes structure for most of the life things we encounter. Building a mindset to help you to stop spending money is the same way. You must take notice of your habits, and your accountability, and be determined to be successful at mastering your spending habits.
The first questions are:
- Where is your budget, do you have one? You need one.
- Are you spending more than you bring in each month? The Budget will help you answer that.
- What are your priorities for spending?
- Do you spend too much on the things you could live without?
- Are you a person who must have brand names for everything in your life?
- Do you want to impress other people?
- Are you living in the present only and not thinking about your family, or your future but just wanting to feel the enjoyment of the money you make?
- How much are you saving each month, and do you have a 401K at work so that you can get free money from your employer? They will match up to a certain point, and the more you input, the more they will. You need a retirement plan for when your later years.
- Why do you overspending? Do you know? How and what can you do to change your mindset and habit so that your future will be brighter?
- Are you just unhappy and just trying to fulfill your need to feel good?
Let’s Talk About Some of The Questions…
Where is your budget? Yes, it takes a little time to sit down and compile a budget. However, if you are going to change your unhealthy habits and mindset of spending, it is something you need. When you have it in front of you on a weekly, or monthly basis, you will see where you are and where you cannot dare tread.
Note: If you do not have Microsoft Office – go to Google Docs- free and search for a Budget and you can fill out and print.
Spending more than you make...if this is true, you already know that you are in trouble. You cannot keep spending more than you make and survive in the day we live in. Inflation is getting higher each day, and interest rates are on the rise, not just for installment loans, but for all loans. When you pay interest on a loan that you make, that is money you could save if you did not have to make the loan. Think about it.
Stop the spending…look at your budget, and narrow things down to where you have some money over and above the essentials for you, and your family (if applicable).
Get a part-time job to help with your expenses if necessary. However, if you only choose a part-time job so that you can spend more…it is a waste of time.
What are your priorities- Your priority should be food, health, life insurance, housing (which includes insurance), utilities, transportation, and the necessities for keeping you and your family healthy and safe. This includes suitable clothing and those necessary things for hygiene.
Do you spend too much on the things you could live without? If you are already in trouble you surely know that we can change some of our habits that are stealing our money. For instance, are you one that MUST HAVE name-brand clothing, shoes, bedsheets, and EVERYTHING?
Well, if you read the labels to see what they are made of then you will probably find a brand that is just as good as Christian Dior, Tommy Hilfiger, Gucci, or Alexandra Wang.
Are you living in the present only and thinking what the heck? – When an unforeseen situation pops up like a car breaking down, the roof blowing off the house during a storm, and insurance can’t pay it all. What happens? It would be best if you thought of the future; unless money is no problem.
There are many things that occur that people are not prepared for in life. Those things can happen at any time. This is not to scare or make you apprehensive or fill you with fear. It is a reminder that life flows the same for everyone at times. There are no set times in anyone’s life for not being cautious with how they spend their money.
What are you saving each month? I have written this before and I firmly believe in 401K savings with your employer. Yes, this is free money that is matched by a certain percentage of what you input into the account. Every employer that has this asset for employees, has its own layout and plan for 401K match. You are throwing away money if you are not enrolled in this plan.
If you do not like 401k…what is your alternative savings plan and how much do you contribute to it each month? The facts are you are going to get older, and one day want to retire from working. If you do have no savings, you are headed into a financial position that is going to make you less than happy. Thousands of retirement individuals will gladly agree. You will become regretful and then it is too late. Just the truth.
Let’s Sum It Up With The Last Two Questions…in How to Stop Spending Money-Simple Methods
Why do you overspend? You and only you can figure out this question. If you are trying to impress other people…you are wise enough to know that you are only hurting yourself. Those people are too busy to notice what you are up to. Why? They are trying to impress someone else.
When you take the time to change your mindset about spending money, you will see a difference. What other people think does not matter. How much money they have does not put a dime in your bank account. What you spend and save is up to you.
Unhappiness…if you are unhappy and do not realize it, that could be the part of you that is overspending your money. Decide what is making you unhappy and make sure that you do the right things about it.
Control your thoughts, your fears, and whatever is causing you to spend unwisely. Always know that you can change anything in your life that YOU want to change.
You will come out of this ahead when you decide the following:
He does not possess wealth that allows; it to possess him. Benjamine Franklin
You must gain control over your money, or the lack of it will forever control you. Dave Ramsey
US News: Inside the Psychology of Overspending and How to Stop
