Solutions for Big Spenders
You’ve tried everything: unusual saving tips, putting away more money, and even cutting back on your morning coffee runs. But nothing seems to be working for you. You’ve tried to stop making those bigger purchases, but cutting back on the smaller ones is making you want to spend more. New Era has some ideas for the big spenders, too. We’re going to offer some solutions for big spenders because we know saving money can be tough.
Change the Way You Think About Money
It’s easy to mindlessly swipe your card in exchange for something you don’t need. Think about the money you’re using to buy your items. Are you paying with a credit card? Technically, that money isn’t yours; you’re borrowing it with the promise you’ll pay it back to the lender. Okay, so you’re paying with your debit card…your hard-earned money is leaving your bank account in a fraction of the time taken to earn it.
Let’s reflect on money for a second. What is it? Why do we use it? Money is a means of exchange. You need groceries and you hand over your dollars to make sure your family is fed each week. You want a new flat screen television and we hope you consider whether or not you really need it for the moment. Money should be used to fulfill our needs before our wants. You should also try to stay away from temptations that could drag you further into debt. Unsubscribe from retailer e-mails, limit the time you spend at the mall, and remember how much hard work you had to do to earn the money in the first place.
Make a Budget That Isn’t So Limiting
One of the reasons you find yourself struggling to stick your budget could be due to deprivation. Your budget shouldn’t seek to eliminate every expense to maximize your savings and leave you feeling you have no wiggle room each month. The process of making changes cannot occur overnight or even in a few weeks. Accept that it’s going to take time and make a budget to accommodate real-world factors. You can alter your budget as you find yourself not needing certain things each month, but remember that slow and steady wins the race!
Disorganization can play a key factor in your finances. If you don’t use budgeting apps that link to your accounts for easy access and planning or aren’t aware of the money going in and out of your account, then your financial stability could be affected. Setting up automatic transfers, making sure your bills are paid on time, and knowing where your money is will better help you take control of your spending. You’ll be aware of how much money you have left in your budget for the month and will know if you can afford that “want” purchase.
Big Spenders FAQ
How Do I Limit My Spending?
One of the best ways to limit your spending is to create a budget. Determine how much money you have coming in each month, and then list out all of your essential expenses, such as rent/mortgage payments, groceries, utilities, and debt payments.
This will help you get an idea of what amounts are necessary for basic needs. Then, allocate a set amount of money for discretionary spending and stick to it each month. One way to help with this goal is setting up a savings account for yourself so that the money earmarked for discretionary items stays separate from other funds.
Additionally, try to only use cash when possible so that you’re more aware when spending occurs. Finally, be sure to track every purchase that you make so that you can see where your money is going and if any changes need to be made in order to stay within your spending limits.
How Can I Talk to My Spouse About Our Spending Habits?
Talking to your spouse about money can be a delicate matter, but it is important that you have an open and honest conversation about credit card spending. The best way to approach the topic is to focus on your shared financial goals and how excessive credit card spending could affect them.
Create a plan together for how much spending is acceptable with the credit card each month, so that you both know what the expectations are.
You may also want to look into setting up alerts or checking in regularly with one another to make sure that expectations are being met. Lastly, be sure to recognize any positive changes in spending habits and be understanding about any financial slip ups – having patience and compassion for one another can help make the conversation much easier.
Do You Need Help?
Spending addiction is real and can have a negative impact on your life. It’s important to consult with a professional and determine if you need to seek help for this and if it’s an issue that is affecting you.
New Era Debt Solutions has helped many clients become debt free and we want you to be one of our success stories too. Contact us for a free consultation so we can help you find the best debt reduction option for you.