How To Take Control Of Your Finances When You’re Overspending

Money isn’t something we like to rely on, but it does control a lot of what we do in life. It can be very easy to start spending money more frequently, especially when you start earning more than you did before. Taking control of your finances is very important because the last thing you want is to land yourself in hot water by racking up a serious amount of debt. Here’s how to take control of your finances when you’re overspending. 

Remove Any Overdrafts
Overdrafts like credit cards can be good when you have big expenses that you can afford from your monthly income in one go. However, the difference with an overdraft is that you are charged interest on a daily basis, and this can build up to a considerable amount if you continue to ignore it and not pay it off. So to help yourself out, remove any overdrafts and don’t allow yourself to get any in the future. Although they are helpful for temporary situations, they can cause problems for you further down the line. 

Set A Strict Budget
Budgeting is a great way of handling your money and having more control of what’s going in and what’s coming out. We soon stop overspending when we see clearly how much money we actually have to spend. Set your monthly budget out on an excel spreadsheet or in a notebook and work out exactly what’s going where and how much money you can save just from what’s left over. A budget comes in handy to take control of overspending, but it’s also useful for when you’re saving for something big, like a wedding or a new property.

Cut Down On Wants Rather Than Needs
There are things in life that we need, like food, electricity, and water in our homes. There are things in life that we want, like a gym membership, more clothes or a new gadget. These wants aren’t needs and therefore if you need to cut down your spending, cut down some of these wants. You may not need to cut them out completely, but just while you get yourself back to a financially comfortable position. These wants are something that may add more excitement and value to your life but remember that your finances should always come first.

Pay Off Debts Quickly
No one wants debt hanging over their head as it’s something that can end up playing on your mind and causing you unwanted stress for the time that you have it. It’s always good to have the attitude of money you borrow is not yours, and you must pay off your debts as quickly as possible. If you take a loan from Buddy Loans, they give you the money and a fixed amount of time to pay it back, taking so much per month. Never borrow or pay for anything that is too much for you to pay back within a certain amount of time. Although long-term payment plans are ideal for bigger purchases, you don’t want too many of these as the interest you will pay, will soon make those purchases a lot more expensive. 

Know Your Spending Triggers
It’s good to know your spending triggers so that you can take control of your overspending as often as possible. So what triggers your spending personally? Maybe it’s the time of the month where you’ve just gotten paid and therefore think it’s ok to spend a lot more. Or perhaps it’s an emotional trigger, maybe when you’re upset you use spending as a comfort, or it could be the opposite and when you’re happy. If you notice what triggers cause the spending, then it’s much easier to remove them so that it stops happening. Peer pressure is quite the common cause of spending, so notice who makes you spend more than you normally do and take control of it. 

Keep Credit Cards For Emergency Use Only
Credit cards are exactly the same as overdrafts in that they give you money that’s not technically yours to spend. Therefore, a credit card should be considered in emergencies only. For those unexpected costs when a boiler breaks down or a car gets written off. As you can borrow quite a lot on credit cards, it can be easy to spend the money here and there when it’s in your purse. The best thing to do is to keep it at home so that you don’t get tempted to use it when you’re out and about. Lock it away and only use it when absolutely needed. 

Set Goals
And finally, everyone likes a goal to work towards, and it can help motivate you in a positive way, particularly when it comes to your finances. You can set financial goals to help you reach a certain amount of savings per month or a challenge to cut a certain number of luxuries out of your budget. Goals help you keep focused on the bigger picture, and when you’re saving or putting money towards something big in your life, you need all of the help you can get. These goals will help you stay on track and will hopefully curb your overspending. 

Taking control of your finances is a lot more important than you may think. Getting yourself into financial trouble can put you and your household at risk, and this can be very worrying when you have property or other people that you’re responsible for. So to recap, remove any overdrafts that easily allow you to spend more than you have. Keep your credit cards at home and only use them in an emergency. Set yourself a strict budget each month so that you actually save some money instead of spending it all. Cut down on your wants rather than your needs and know what your spending triggers are. And always remember that having debts hanging over your head is never a good thing, so remove them as quickly as possible so that your mind is more at ease.

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