How to Manage your Spending

This is just wrong!

All the ads seen on television are so attractive. That is what product marketing does, it attracts you to want what you do not need. This dilemma feeds a spending habit and can contribute to debt quickly if one is not careful about his or her spending. Here are methods in regulating a spending frenzy and helps the buyer spend only on needs and not the wants.

Resist it first: Many times the person will see an item and buy it without thinking of the needs over wants. This is called impulse buying and the shopper in not thinking of long-term as much as he or she is thinking of an item as a have to own fad. Contemplate your last few purchases before jumping into another. Ask yourself, “Do I really need this or is it just something I want?” Walk away and think about whether you will regret spending the money or where will it go after it loses the charm creating the want. Consider this time as a cool off phase.

Avoid spending to alter your temper: Are you down? Do you need a pick-me-up? Well, do not waste your money on a purchase you will regret later when you are happier. Later, this hasty purchase may cause another crash in one’s mood after realizing what he or she has done. Ask a mature and supportive family member or friend, go workout at the gym, or walk on the beach. A nice alone time with a camera may be all one needs to get over a situation. This allows you to overcome the mood that spurs on crazy spending.

Avoid recreational spending: Do not entertain yourself with a trip to the mall or car dealership. Many people surf the web or see what is available and that is all one needs to satisfy the hunger. Going to the mall needs planning. This planning will ensure a successful visit without a costly mistake. I like to make a list of essentials or create a plan of action before visiting the stores. This is the best medicine for a recreational shopping virus. One should take the time to figure out what he or she needs sometimes that can be just as fun without the headache.

Be selective with associations: Desires are fueled by friends and lifestyles. Do not try to keep up with the Joneses; just be the influence that others are attracted to. So you say to yourself, “I don’t want to be the leader!” But the moment one makes a decision, he or she is a leader. Largely because people look at what you do and try to follow the same behavior. If you emphasis what you will be smart within your spending, your friends, and family will follow your lead. This is not a bad thing, so do not overspend to keep tempo with others, be selective on what you buy, and others will follow the same path.

Use credit only as an emergency: Cards are to gain credit scores not for ignoring your spending habits. The consequence for thoughtless credit card charging is spending more than one can repay comfortably. This thoughtless act creates animosity among couples and can drive a wedge between even the best of us. Only charge for emergencies, and only spend what you can payoff within that month. This will increase your credit without damaging your pocketbooks or your relationship. If you do spend for fun, realize you are paying up to 25% over what you purchased that item for as you are charged interest over the initial cost. Ask yourself” Is it worth it if you cannot afford the item in the first place?” 

Recognize your financials: Knowing what you have to spend is easier than spending too much and later realizing you made a mistake. Balance your checkbook, but if this is too much to ask, make a point to round up your purchase amounts and know what you have in the bank as a ballpark figure. This will help in developing a record of purchases and leftover funds. Develop a list what you need and what you have in the bank to spend. If you get a manila folder or envelope, and write your spending totals on the cover, it is easy to add up your spending as you go. You also have the information on your spending in one area so you do not have missing costs surprise you later. Again, ask a mature and trusted individual for financial matters that you may not be familiar within your accounting.

There you have it; methods in regulating a spending dilemma. This should help the buyer manage his or her spending habits for the needs and not the wants in the home. On another note, if the individual does a good job, and he or she saves some money in the process than by all means buy that something special if you want, but only after a success as a reward for a job well spent.