We all go broke at some points in our lives. It isn’t a curse or a matter of being unfortunate at all. The real unfortunate thing is that lots of people keep spending the money they don’t even have when they are broke. Not being able to admit you are broke means avoidance of the real situation and until you face the problem you will just go right ahead and continue overspending. While the frugal wait for the cash to come in, some spend money that is on the way. By the time the money arrives, it’s usually used to pay for the debt. Maintaining a certain kind of lifestyle in the case of a financial problem is another reason for overspending. When you are out of cash your lifestyle can be seriously threatened. Getting out of this cycle won’t be easy if spending is your way of proving your self-worth. Are you tired of having to borrow money again just to support yourself and your family? Here are a few tips to put a stop to your overspending:
- Be Honest With Yourself
You must own up to your current situation and look for ways of squarely clearing the mess. Stop hiding from creditors and slacking off from paying credit card bills by being honest with yourself. Admitting that you are going through a financial problem is the first step to your financial freedom. No matter how hard you try to run from your problems, facing it, and finding a way out of it is the best solution.
- Seek Assistance From Your Close But Mean Relations And Friends
Binge buying is a hard-to-cure disease and letting someone you can trust to hide your credit cards from you would be of great help. This person must be mean and strong-willed so as to help you stay on your plan. Your regular earning and/or credit card should be with the person who will only release it to you whenever you really need it.
- Prioritize Your Utility Bills
Pay off utility bills first so that you keep your bills from mounting. Prioritize what is needed to be paid and then call your creditors to make a payment arrangement. Do well to follow your plans through to the letters. You might move close to someone who can always remind you of your commitment.
- Store Screening
Make it a habit to go to places that sell necessities only. Stop going to malls and other places that may tempt you to buy things you do not necessarily need. Another way around it is by listing your groceries and giving someone else to help you get them. Going to buy them by yourself might tempt you to buy unnecessary things.
- Learn To Use Money Management Tools
Use budgeting or money management tools to help you cut down on unwise expenditures. There are a lot of free management tools you can download online to assist you to utilize your earnings judiciously.
- Get the Cheaper Alternative
Most generic products are as good as the expensive ones so if you are shopping for groceries, think of what difference it makes if you buy expensive bottled water or the cheaper ones. If you’ve thought that one out, well the right answer is ‘it doesn’t make any difference at all.
- Look Back
Look at all the things you have purchased in the past. Give it a moment to sink in and whether you like it or not, you will come to realize that most of the things you bought are just stored away somewhere – a shame really but hey, it will knock some sense into you. Many of the items you bought out of impulse are generally useless.
- A Daily Dose of Reality Check
Write down all your expenses, remember your basic accounting? If you are spending more than you are earning then you are on your way to bankruptcy. End your overspending habits and start doing some budgeting. Write down everything you spend on so you can review your expenditures at the end of the day.
- Cut Down on Unnecessary Expenses
Some unnecessary expenses must be cut. For instance, cable TV/satellite TV. Studies have shown that most people could save up to $100 per month on cable and satellite TVs alone. Stop eating out and prepare all of your meals at home, including lunches that you can take with you to work. With these expenses cut down, most people usually save hundreds of dollars per month.
- Stay At Home More
Stop paying for entertainment. No movies or ballgames for a while until you get your bills under control. Cancel travel plans as well as exorbitant vacation plans. You need to stay home, not spend money traveling away from home. Even driving trips with relatives cost money because fuelling the car and entertaining all your family members while on the trip will do more damage to your finance especially during your draught time.
- Sell off some of your Excess gadgets and properties
If you have more than one car in your garage or live near public transportation, you may consider selling one of your cars so as to give you some cash and remove a car payment from your debt budget. You will also need to defer expenses such as buying new clothes, new shoes, or getting your hair fixed. You may also look at cutting your Internet service at home. It is a bit difficult but if you can use the Internet at work or at the library studies have shown that you can save up to $50 per month doing so.
When you miss your way and go the wrong way or make a mistake, the best solution is to ask for the right way and follow the same. Getting broke could get you into more troubles if careful and mature steps are not taken to put you back on financial freedom. You may need to look at increasing your income by getting a second job or higher paying job if your bills have exceeded your income capacity.