What does it mean to overspend? When you spend more than an allotted amount, or exceed your budget, you have over spent. The act of over spending then becomes bad when you find yourself short changed in other areas that are more important than the one you overspent on. Now, creating a budget is not so hard to do, but sticking to it is the hard part. So here are reasons why your money seems to never be enough:
Budget: Okay, maybe creating a budget is actually hard for some people. Often times, you just assume you know what you need and walk into a store determined to buy just that, but unfortunately, once you walk into the store, everything seems like what you need. Solution: write them down. Every time you find yourself in a situation where you need something and it is not available, get a pen or open up a new note on your phone and write it down. Continue to add to the list until it is time to shop and you’ll realize you not only have everything you need, but you are buying only things you actually need.
Impulse Buying: Similar to the point above, you need to stop assuming you need things that are not on your budget. Do not walk into a store except you have a list and do not go outside your list. Temptation can be hard to resist so do not test yourself.
You Think You Have Money: When you just get paid – either your salary or by a client – it is perfectly natural to think you have money. The thought of that much money in your account helps to release some endorphins that make you happy or excited and you just think you should spoil yourself. Well, don’t. Often times, when you think you have money, wait for a week after that money has been in your account and the bills you really need to spend the money on will begin to show up and you would be glad you did not act impulsively when the money dropped. So here’s the solution, relax before you spend. Let the money sit there for a while before you begin to make random plans.
Not Tracking Your Spending: Sticking to your budget involves more than just buying exactly what you have written in your list. It helps to track how much you spend as well, and what you are spending on. This can help you channel your resources in areas that could be more cost effective, and also nip any money leakage in the bud. Using apps like Money Dashboard, Mint, or Personal Capital can help you with this.
Mixing Up Your Wants and Needs: It is not enough to write down a bunch of things you think you need. You must be able to differentiate the ones you cannot do without from the ones that are simply luxury. This is not an easy task, because needs defer from person to person. But if you decide to be honest with yourself, then you will be able to take out a few wants from your list and let the money go into your needs.
In a Nutshell, if you want to keep from overspending, you have to be willing to sacrifice.
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