It is so easy to overspend. How can it not be? After all, spending money on yourself and your loved ones feels good, doesn’t it? You feel empowered. You feel free. You feel like everything is possible. You feel like you can directly impact your world. Sadly, all these feelings go down the toilet once you get that monthly statement from your credit card company.
Instead of feeling that your world is wide open and that everything is possible, you feel like you are trapped in a tight little hole with no rope you can use to pull yourself up. Make no mistake about it, credit card debt can easily turn into a financial pit you can’t get out of. You are hardly alone-every year many otherwise responsible people file for bankruptcy.
The good news is that you only need to keep three key tips in mind to avoid overspending. These tips can be real life savers. They help you overcome the ‘squeeze’ you mentally feel when you feel that you ‘just have to buy’ something. Think of these 3 tips whenever you are face to face with a shiny new trinket that’s silently begging you to buy it.
Figure out what need the purchase fills
Every purchase we make must have a purpose. At some level, they provide a benefit. Now, to figure out if that benefit actually makes sense to spend money on, you have to figure out what needs the purchase fills. Of course, prioritize basic needs. After that, scale up until you get to ‘luxury’ needs. If you are on a tight budget, focus on your base needs first. They have priority.
Kick the can down the road
Normally, kicking the can down the road when it comes to financial decisions is a bad idea. This is definitely a bad idea when it comes to paying debt or getting in a debt reduction campaign. However, if you will be kicking the can down the road or postponing making a buying decision, this should be fine. Don’t be in a hurry to buy and get into more debt. The only debt you should assume is debt for a program or method that will help you get out of debt even faster due to increased income.
Focus on alternatives or systems
Almost everything you buy has an alternative. Can’t buy a purse, buy a bag instead. Can’t buy a banana, buy a pear or an orange. If you see yourself feeling the urge to buy something really bad, you have to keep in mind that the item probably has a cheaper alternative or substitute. Of course, you might be thinking that you are cheating yourself but better to play tricks on yourself than financially screw yourself with a huge purchase.