Financial Advice For People Who Are Addicted To Overspending

When you have a habit of constantly spending more than you earn you are in a financial mess.  It will only get worse unless you take action to rein in the overspending.

If you go to the mall and are unable to resist the sale sign at  your favorite store you will most likely be overspending since you are buying on impulse.  When this occurs on a regular basis it leads to financial problems.  Just because an item is on sale it may not be a bargain for you.  If you are charging the item consider the amount of interest you will be paying for this item if is stays on your charge card beyond one month.  Is it still a bargain?  Before you make that purchase think about whether or not you really need it, or do you already have a similar item at home.  Walk away for awhile and give yourself time to think about the purchase calmly.  Do you have the cash to pay for the purchase without taking the money from another financial obligation that you will have to let slide.  Taking money from one obligation and using it instead for another purpose never works for very long.

When you go grocery shopping have a list and stick to it.  Putting unplanned items in your cart can really increase the food bill.  Ask yourself if you really must have it or if you can do without.  Can you find the item cheaper somewhere else.  It can also help save a little money if you use coupons off on items you use – it won’t save money if you purchase items you don’t need just because you have a coupon.  If something you use often is on sale, and you can afford it, buy enough to last till the next time it goes on sale.  Usually items are put on sale every month or six weeks.

To manage your money you need to set your priorities.  Take your net income and deduct your fixed monthly expenses.  Be sure to include the monthly amount you need to allocate for expenses that occur less often such as quarterly insurances, gifts, unexpected repairs or medical expenses, etc.  Whatever is left is the amount you have for disposable income.

Decide how much of this disposable income you want to spend for things such as groceries, entertainment and shopping.  Hopefully you will decide to save some even it you have to start with a very small amount.

Do you shopping using cash and leave those credit cards home.  Unless you can pay your credit card balance each month you will just keep going further into debt.

Keep a register of your spending so you have a picture of where you spend your money.  See where you can cut back on some of the expenditures.

If you are unable to straighten out your own financial problems you may want to consult with a financial advisor who can guide you.

You want to get to the point where you have savings so you can take care of unexpected expenses as well as have the peace of mind that comes from not having a load of debt.  If you carry large debt now the journey will not be easy and it will take time.  When  you have been successful in banishing the debt you will find your life is so much less stressful and so much better.