5 steps to help you Stop overspending

One of the biggest obstacles to getting your finances in order is overspending. I myself had a problem with overspending for years. It wasn’t till I did my first no-spend week for me to begin to get my overspending under control (somewhat). It took me two years to stop this very bad habit.

One of the things that lead me to realizing I had a problem was learning how to coupon. I had been a bargain shopper all my life however I found out that bargain shopping doesn’t stop you from spending money that you don’t need to spend. In some cases, I was spending way more then I needed due to chasing deals.

It’s safe to say I had a bad shopping problem and even though I didn’t have a lot of money most of my life I sure new how to spend every sent that I made. Once I was able to get my spending under control, I found out I wasn’t as broke as I thought I was. I also had more money to save and invest not to mention I was able to enjoy life a lot more then I had been.

Today I want to share with you the 5 steps that helped me with overspending / my shopping problem.

First

Find the reason

Like most things in your life your spending habits are due to some rhyme or reason. That’s right you are not overspending for nothing.

If you truly want to change your spending habits, you need to find out how or why you have them in the first place.

The following list are some of the most command reasons people overspend:

  1. Compensation – you can do these two ways. One shopping as a reward or two making up for not being able to have things at some point in time in your life (most of the time people that were poor or low-income growing up ten to have shopping problems when they grow up or have money)
  2. Exchange- this is when you start one bad habit in place for another one. Some people start shopping excessively due to them overcoming drug addiction or alcoholism. The reason why is due to the addiction or alcohol takes up all their money and now that they no longer have the problem, they miss manage the money they no longer use on the addiction.
  3. Emotional trauma- this is what people call retail therapy. This is when one shoppes to make them self-feel good or better. It is a way that some people mask behind their problems. It can also be when a spouse overspends out of anger (or retaliation).
  4. Compulsive behavior- this is when a person feels like they just have to have something. You know the saying “Money burns a whole in the pocket”. Some people cannot keep cash due to having the urge to have to spend it as long as it’s in their hand. Others just have to spend money whenever they see something they want (or have to have).
  5. Attention seeker- these are people that like to shop base of the attention that they get from others. Yes, people buy shoes, cars, etc., just so other people will give them compliments, and some due it to make others feel bad (which gives them a form of satisfaction, to know they have something that another cannot have).

These are just to name a few believe me there are hundreds of reasons people over spend or love to shop.

Two

Identify your triggers

Everyone is different some people are good at shopping in store with a list where others are better at shopping online (like this girl). Some of us are better at shopping with a credit card and others are better at shopping with cash.

It’s imperative for you to know what triggers you to spend more money when you shop. In my case I spend more or buy more then I need when I shop in store versus shopping online. Due to this reason, I do most if not all my shopping online (it makes it really easy for me to stay on budget and only buy what’s on my list.

If I shop instore, I attend to look around and add things to my cart due to the sale price (I love a good deal) and it feeds into my compulsive shopping. If I am online, I have to type everything in (this is time consuming) there for I stay on task and don’t go looking for extra deals.

Also, I don’t have a problem spending cash because there is no accountability for me. All I have is a receipt when I am done. However, when I have to swipe my card, I am more aware of what I am spending due to the fact it shows up on my bank statement, so I am more accountable of what I am spending.

So, if you haven’t guessed it by now my trigger is that I am a compulsive shopper.

Three

Learn how to adjust your lifestyle

Since I know why I overspend and what my triggers are I then adjusted how I do things.

one thing that I do is limit my shopping trips. So, I learned when the best time of year to buy certain things.

example- I learned when all of my favorite stores have their big sales throughout the year. I only do major shopping at those stores during their big sales.

I coupon and stockpile my personal care items there for I don’t pay much, and I don’t buy that often because I don’t have a need to because of my stockpile.

I started ordering my meat online and in bulk. This helped me save money and eat healthier (plus I get a better quality of meat then you would find instore). As I said above, I do all my shopping online (well most of it) and I plan my shopping either way.

Four

Set rules for how you shop

Some of the shopping rules that I set for myself are as followed:

  1. I make a 30-day list and if I want something I wait 30days to see if I still want to buy it.
  2. I only shop on my schedule days throughout the month for groceries. Example I have a day that I order my meat online, I have a day that I order my vegetable and fruit online and I have two days out of the month for my Walmart + delivery.
  3. I budget money for wants and only use that money. So, if I want something over my budget, I don’t buy it and add it to my wish list tell it goes on sale.
  4. I only shop at certain stores during sales. Example- Victoria secret, I only shop their Annual and semi-annual sales (there for I only shop twice a year).
  5. I can’t buy what I can’t pay off in full at the end of each month. Example – I have a credit card budget system and I set the limit that I can afford to pay. By setting the amount that I can pay in full at the end of the month I don’t max out my cards.

Five

Give every dollar a purpose

Learn to give your money purpose. I have a budget that I follow each month. The first thing that happens when I get paid is money auto pays my savings accounts. The second thing is anything that I have to manually pay I pay. Third I leave the rest for my auto paid bills.

Whatever is left goes into my spend account at the end of the month. This way I know that everything in the home is taken care off before I spend money on my wants.

I do this with digital sinking funds, I have different accounts for different needs.

Examples:

Checking- to pay bills

Regular saving- for things that may come up

Emergency fund- in case of emergency (like loss of income for a period of time)

Vacation- Money I can use while on vacation

Grocery- monthly grocery budget

Kid’s needs- If you have children, you can put money aside for their monthly needs

Investment account- this is where you place the money that you plan on investing each month (or however you like to invest, weekly, monthly, quarterly, annually).

Household expenses- money that is set aside for home maintenance

Car expenses- money that is set aside for car maintenance

Holiday account- money that you set aside for the holidays or even birthdays

The list can go on and on but for the most part if you can have your money accounted for the less you will have to spend on things that you don’t need.

If you can save as much as you can from your monthly income that better off you will be financially and the more, you can enjoy life without having to worry about money.

Well, that’s all that I have for today, I hope this helps you on your journey.

Thank You for reading Everything Frugal.

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