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6 Ways to Stop Overspending

Do you wonder why all your money disappears so fast? Do you constantly find yourself overspending? Do you reach or exceed your credit limit often? 
Many people find themselves spending their entire paycheck as soon as they get it, spending until they overdraw their accounts, or even having to borrow money from friends and family to pay for things. If this is you, you probably need to curb your spending habits. Overspending is a huge mistake when it comes to your finances. And by continually overspending, you can end up with a lot of bills and in a ton of debt. So, think twice before you damage your finances. Here are some easy ways to stop overspending and start using financially responsible spending habits:
  • Keep track of your spending. Whether you are overspending or not, it is important to know where your money is going. How much of your money goes towards expenses versus entertainment? If you know where your money goes, you can pinpoint the cause of your overspending and can then work to fix it.
  • Make a budget. By creating a budget, you can easily plan your purchases. Figure out what your expenses are and how much you want to spend. Even just planning out your daily or weekly purchases can help. You must stick to your budget! If you do, you can end up saving a lot of money.
  • Create a shopping list. This will help you stick to buying things you need and not getting distracted by other things. Before you go to the grocery store or even the mall, make a list. Focus only on the things that you actually need; looking at other things will just tempt you.
  • Wait before buying big purchases. A lot of people buy big purchases on impulse. Whether it be a flat screen TV, a car, or even a house, deliberate before you make that purchase. Do you just want it or do you need it? By thinking about it beforehand, you can stop yourself from impulse buying.
  • Use a prepaid debit card or secured credit card. If you consistently spend to your credit limit or overdraw your accounts, think about getting a prepaid debit card or a secured credit card. Secured credit cards require that you secure your credit line with a deposit. With a prepaid debit card, you take the money directly out of your account. Since the money is in the account, this insures that you actually have the money you are spending.
  • If you can use credit responsibly, use a rewards credit card. Using a rewards credit card can help you save money on the things you buy most. However, you must be able to use this card without overspending. Getting a credit card that rewards you for everyday purchases like groceries and gas can help you save money and earn freebies and discounts.
If you consistently overspend, you must be willing to admit that you have a problem that needs to be fixed. But once you realize that, you can start following these tips and easily learn smart spending habits. It’s not hard to become financially responsible; it just takes some willpower!
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Alice Bryant's picture

Alice Bryant is the Editor of Creditnet and a personal finance expert with over a decade of experience writing about credit cards, credit scores, debt repair, and more.

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