Spendaholics: How to Stop Spending Excess Money

If you can’t seem to keep your money till the end of the month or you have accumulated debt yet still can’t stop yourself from treating yourself or having a fun night out, chances are you are a  spendaholic or spendthrift. 

There are a million reasons why people spend or overspend and one of those reasons has to do with power and control.  Buying that dress or that cake (when it's not even your birthday) puts you back in control whenever something beyond your control happens. It might have something to do with sadness, or control or maybe you just have no idea how to plan yourself. 

One minute you are broke and the next minute you are earning huge amounts of money it's burning a hole in your pockets, so you make it rain and you end up broke once again.

How can you manage your money and stop living from paycheck to paycheck? Below is a list of strategies to help you stop being an overspender.

Read Also: 5 Spending Principles You Need to Follow

1. Budget

If you can’t keep track of where your money is going, one day you feel like a millionaire and the next day you don’t. Then you need to consider making yourself a budget. Having a budget will help you keep track of and understand where your money is going and where you should cut back. 

If you have a  fixed monthly income, work around that. If you have an amount you want to save, put it aside and refrain from using it for other purposes. Create a budget with the money you haven't set aside and ensure every coin has a purpose to avoid spending beyond what you budgeted for.

Creating a budget gives you a clearer view of your spending habits and you can use it as a guide when making decisions about how to distribute your money. Creating an effective budget could be the first step to helping you reach your financial goals.

Read Also: Budgeting 101: What to Include in Your Budget

2. Know Your Spending Triggers 

Have you ever found yourself buying something you don’t need and when you think about it, you don’t know what triggered you to buy it in the first place? As mentioned earlier, people overspend for different reasons. Maybe at that particular moment you were bored and you just so happened to have your atm card in hand. It’s important to know what triggers you, in order to avoid making purchases you don’t need. 

According to Barclays, a spending trigger is a feeling or situation that makes it easy for you to break your spending rules. For some people, it could be feeling bored or stressed while others might spend to fit in with friends. Whatever the case, make a list to better understand what makes you want to spend money.

Read Also: How to Figure if Something is Worth Spending On

3. Plan Purchases With a Shopping List

Some might think a shopping list is only for the forgetful husband or child but it can be a great tool for keeping anyone trying to stop overspending in check. 

Whether you are shopping online or in person the list can help you stay on track. Make a list of what you need and don’t buy anything unless it's on that list.

Making a list of what you want to buy can help you figure out if you really need something or if that thing is just an impulse buy. After you have your list written down, it's important you ask yourself these questions, 

1. Do you need it or want it? Why do you need it?
2. If you wait or look elsewhere can you find a cheaper alternative?
3. How often will you use it?
4. Have you bought something similar in the past and regretted it afterward?

Read Also: How to Curb Emotional Spending

4. Set Short-term Financial Goals 

Buying a house isn’t something you can term as a short-term goal because it might take years to accomplish, think of saving to go see a movie with friends or to buy that cute dress you have been eyeing. 

Achieving these goals will help build your confidence and act as the foundation you need to achieve bigger goals that take time. Setting attainable goals makes it easier to prioritize spending and enables you to keep track of your success. Establish financial goals that motivate you to reduce your regular spending to get you what you really want with your money.

You shouldn't only set aside money just to buy things. Saving money is essential since you never know when you'll need it, save for a rainy day too.

Read Also: How to Set and Achieve Your Financial Goals

5. Step Away for a Moment.

Wait a day or two (or two to three weeks if it's a larger purchase) before purchasing something if you see it and want it but don't need it. This will give you some time to consider whether you actually need it and whether the cost is worthwhile. 

You'll begin to consider your purchases more carefully and eventually stop making impulsive purchases.

6. Track Your Spending

Write down everything you spend money on to keep track of your spending. This will assist in locating potential areas of overspending. The more clearly you can see your spending patterns, the easier it will be for you to make changes.

Read Also: 8 Benefits of Tracking Your Spending

7. Get an Accountability Buddy

Find someone who will hold you accountable for your spending, this person could be a friend or a family member. Whoever you settle on, share your budget with them and ask them to check in to see if you are sticking to it. Explaining why you want to buy something could be enough to stop you in your tracks. 

You could also ask them to help you with your budgeting getting someone else to take a look at how you manage your money and spending can help you to be more objective and help you to stick to your plan.

Read Also: Want to Achieve Your 2023 Financial Goals? Get a Money Buddy

8. Avoid Temptation 

If your social media is flooded with influencers sharing your favorite brands or you are constantly bombarded with ads that tempt you to buy things or you frequent online shopping sites or you do your shopping in a place that is constantly having promotions, whatever the case, chances are you may be buying things you don’t really need. 

How can you avoid these temptations?

1. Avoid shopping in places you know will persuade you to buy goods you don't need 
2. Unfollow or mute social media accounts that post goods and services you don't need. 
3. Install an ad blocker and turn off targeted advertisements in your browser settings are two simple ways to reduce your exposure.

WRAPPING UP

When you take care of yourself and practice good financial self-care, you ensure that saving and spending are kept in check, you treat yourself according to your means, and you establish financial plans to take care of yourself in the future.

All these steps and habits might feel like you are going through financial hell, not being able to freely splurge your hard-earned money. But you are taking control of your spending habits and it might not feel great now but you are building a healthy financial habit that in a few years to come will have you reaping financial rewards.