It has been important to me in 2021 to find ways to prevent overspending, as i attempt to pay off persistent long-term debt. And it is not easy, because quite simply life is very expensive! So i decided i needed a plan, and have written in this article some of the tips i discovered along the way.
Ways To Prevent Overspending – Pay With Cash
When you go out – whether it’s for groceries, a stroll through the shops, lunch, or anything – set aside a budget in advance and withdraw that money in cash.
Leave your credit cards at home and turn off Google/Apple Pay. If you just have £50 on you, you can’t go overboard.
The pandemic has seen us move towards a cash-free society. I do not like this, and i prefer to pay for things still with cash. It is so much easier to overspend when you wave a card at a machine. This reminds of me when i used to go to casinos very occasionally. I would take out the money i found acceptable for the night, and no cards. That way, i only spent what i could afford, and could not go chasing losses.
Devise A Realistic Budget
Even if you have a budget, do you find yourself overspending? It’s because your budget and how it fits into your lifestyle are unrealistic.
Budgeting isn’t about limiting yourself. So if you make a budget and don’t account for things like eating out or clothes, you’re setting yourself up to fail.
Allowing yourself £50 a month to spend on clothes is preferable to not budgeting for them at all and constantly being in debt because clothing is something you spend money on on a monthly basis. It’s also a mental issue.
The same may be said for a budget. Telling yourself that you don’t have enough money for x, y, or z will just make you want to spend it on those items.
Budgets should not be overly generous. They should be sufficient to allow you to indulge in some guilt-free shopping.
Ways To Prevent Overspending – Track Your Spending
Tracking my spending is one practical method for avoiding overspending that I use on a regular basis.
Make a list of everything you buy. They’re all there. Even if it’s just a pound or two here and there. I prefer to use a pen and paper since I believe the procedure to be more efficient.
Make it a habit to do it every day for at least a week, but for best effects, do it for a month.
And as you progress through this process, you’ll become increasingly aware of your spending habits.
Knowing I’ll be documenting this spend later usually makes me more aware of my buying and prompts me to ask myself, “Do I truly want/need this?” when I’m out shopping.
Visible Goals
The next useful step is to consider what you want to accomplish – it may be debt independence or saving for a house… It could even be something as simple as putting money aside for your next vacation or day out.
Create a visual assistance, whatever it is, to remind you why you want to stop overspending and where that money may be better spent.
Create a tracker and pin it to your refrigerator or noticeboard to keep track of your progress.
Alternatively, you could post a picture of the goal somewhere where you’ll see it every day and be reminded of it — perhaps as your phone’s background?
When you’re inclined to spend, the persistent visual reminder will serve as a good motivation.
Responsibility For Your Situation
Accountability is a fantastic tool for fighting expenditures because we all have a competitive inclination.
When you tell someone you’re going to do something, you’re more likely to follow through than if you try to motivate yourself.
Request a check-in from a buddy, and make your objective public on social media – no one wants to fail, especially in front of an audience.
