3 Secrets to Help You Avoid Overspending

Despite your best efforts, do you find it difficult to avoid overspending? 

Many families find themselves struggling to live within their means, either because they have too much debt, or because their spending habits/patterns are uncontrolled and they simply don’t know how to make changes that are healthy for their checkbooks. 

Here are some quick tips on reining in that spending, and keeping yourself debt-free.

1.  Don’t use credit cards.

If you have credit card debt and are carrying large payments at high interest rates, talk to a community credit debt counselor.

There are many groups that offer this service for free.  They’ll help you understand how the debt can be cut down faster, and whether a consolidation loan is a good idea.

Credit cards are a temptation to spend money you don’t have. If you must have one card, leave it in the care of the person most responsible for your family’s financial health, and never use it except for emergencies that can be paid off within a short time.

2.  Budget your money and expenses.

Even a simple budget in a notebook will work, or you can go to a spreadsheet on the computer.  Gather all your bills, and calculate your monthly expenses, remembering to include a 1/12 portion of any annual expenses.

Then take your gross income and figure out how much has to be set aside per week for absolute essentials.

Whatever remains, is what you have for optional spending like savings, education or retirement funds, and entertainment.

3.  Before you buy, ask yourself if you really need it.

That could be anything from a new stereo system, to a new car.  Ask yourself if it’s worth going into debt for, or just how far it will stretch the family budget.

Remember that you need room in your family finances for emergencies, and stretching your discretionary dollars to the limit, is never a good idea.

Tip:  Why not pretend you have no credit card?  If you have no credit card, how would you shop differently?  You’ll be pleasantly surprised how much less you’ll spend if you have cash in your hand and must decide whether to hand over your cash.  Try it, you’ll see what I mean!

Keep these three secrets in mind, and you’ll find that you truly can stop overspending.  Remember, it’s one day at a time.  Or should I say, ‘one dollar’ at a time?  Good luck — you can do it!

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ADDITIONAL RESOURCE:  Do you try to pinch pennies — but find yourself with even less money at the end of the month?  Does it seem as if you’ve done all that hard work for nothing? 

If so, Savvy Saving for Busy Women may be what you’ve been looking for.  You’ll find a quick and easy way to have money for those things you want.  Each chapter walks you through a common money challenge — then offers a simple solution.  You can stop overspending — the painfree way – with Savvy Saving.