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Beyond making New Year’s resolutions, you must commit to a year-round mindset. Recognizing when you veer off course and teaching yourself new behaviors are essential to being a success in the long run. If overspending is the habit you want to curb, remember that spending money isn’t bad. For the most part, it’s necessary. Overspending, however, can negatively impact your finances, credit rating, and every other aspect of your life.

Whatever your objective, it helps to remember why you want to change. Clarity is the driving force behind every action we do. It fuels motivation and reminds us of our end goals. To control spending, calculate your net income after taxes and subtract mandatory monthly bills, like rent and utilities. Budget for holidays like Christmas and birthdays and put aside money regularly.

Temptations exist all around when it comes to spending. Consumers no longer need to leave their homes to receive advertisements catered to their ideal needs, sometimes before they know themselves. To protect yourself, it helps to cancel all digital and mail-order catalogs and unsubscribe from all marketing lists. You can also combat spending triggers by keeping a spending journal, using budgeting software, and checking your bank account daily. Transaction alerts show in real-time, making you consciously aware of purchases online or in person. This accountability will reduce the number of impulse purchases. Additionally, a spending journal will help you notice frequent purchases and simplifies budgeting.

Credit cards offer rewards like frequent flyer miles, cash back, and spending points. Cards can be helpful in some instances, but it’s essential to rely on them sparingly. Without seeing an instant effect on your bank account, it is easy not to hold yourself accountable. Only buy something on credit that you can pay for in cash. Credit cards should always be paid in full when the bill comes due to avoid paying ridiculous interest rates. Even when cards are paid off, keep accounts open and active. A zero balance reduces your revolving usage ratio, which is used to identify clients in financial distress. Lowering this proportion demonstrates steadiness.

Another tool for curbing spending is to set a 48-hour restriction on purchases. Often, impulse buys are based on a current state of mind. The inevitable post-purchase anxiety and regret follow. After the waiting period, if you still feel the same way, then buy the item. Set limits on the scope and range of purchases to avoid causing disruptions in your daily life.

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