When economic times are good, people rarely consider how their current spending habits can negatively affect their financial outlook when times change.
They may become accustomed to buying big ticket items which require the use of a credit card. They buy things they may not truly need because they have the disposable income to do so.
Unfortunately, when times change and money isn’t quite so available, they wonder what to do and how they can make ends meet.
It’s common knowledge that economic times are tough, not only in the United States, but also in many parts of the world. People are losing their jobs at an alarming rate and it doesn’t seem like that downward trend is even close to stopping.
With each passing day, someone finds out their job may no longer be secure or they may already have been given their walking papers.
What’s a family to do when they’re used to spending what they want or when they no longer have the same income they once did?
One thing they can do is reign in their spending and the amount of money they have going out each month by using these strategies to stop excessive spending.
By following these strategies, families may be able to not only survive an economic down turn; they may also be able to thrive.
How to Determine If You Have Excessive Spending Habits
No one wants to admit they have problems with handling money much less admitting to having excessive spending habits. They would like to believe their spending is normal and under control. This isn’t always the case so how do you know if you do have a spending problem?
- Do you pay your bills on time each month? This is often the first sign of a spending problem. Rather than using the money earned at their job to take care of their living obligations, people with spending problems choose to spend money on things they want. They may feel they “deserve” the things they want instead of waiting to purchase it until they have the money saved.
- Do you use credit cards to pay for everything? Once the habit has begun of using credit cards to pay for everything, problems generally begin. This may mean you’re using credit cards for everything from groceries to your utilities. By you’re putting everything on credit you may not be aware of exactly how much you’re spending each month.
- Do you feel the need to get a second job in order to pay your monthly bills? If you’re struggling to make your financial ends meet, you may think more income will solve the problem. However, what’s more than likely to happen is that you’ll simply use that income to fuel your spending habits if they’re out of control.
- Do you spend money to deal with stress or feelings of lack? Some people eat in order to handle stress; those with excessive spending problems use shopping as a panacea. Unfortunately, people that use shopping to make themselves feel better don’t realize how much their overspending can cause problems for them both now and in the future.
- Do you make find yourself making impulse purchases? Or can you wait a little while to get something you want? If you’re unable to put off a purchase for something you want you may want to consider how to reverse your excessive spending habits.
So, how did you do? Did you answer ‘yes’ to several of these questions? If you did, you may have a problem with spending. Don’t despair. Even if you answered ‘yes’ to all questions above, there is hope. You can use the ideas below to get your spending under control and help make your financial future look brighter.