You can break free of your financial situation now.
Many financial blogs have this mission to help you get out of debt, save for your future and have the financial freedom that you dream to have.
However, you find yourself drifting away from your goal every time you get your pay check and see an item on sale. Then you realize that you had overspent your money again so you beat yourself up and vow to start over next pay day.
Is this the cycle you are faced every fortnight?
If it is hard to break the cycle, maybe it is because you already have the habits of people who overspend:
People who overspend have these bad habits:
Destructive Habit #1: Being reactive
Are you one of those people who hit the mall when stressed or lonely and find yourself buying more than you’d usually do?
People who overspend are usually people who react to negative things like stress and loneliness.
If this is you, then try to change this habit of being reactive. If you feel stressed or lonely take charge of your emotions and steer yourself away from shops and malls.
Instead, grab a friend to talk to or do a different activity that will take your stress off.
Destructive Habit #2 Shopping without a plan
When you visit stores and malls to help make you feel better there is a higher probability for you to buy things regardless if you have a need or a budget for it.
When you shop, it is always a good idea to list things you need to buy first. Be detailed in the list as much as possible. If it is a grocery list, write how many or how much you need and if you are already familiar with the price (or price range) of the product, write it down beside each item so you have a rough idea of how much you are going to spend.
If you are buying a gift for someone, list down possible things you can buy. It does not have to be definitive; you can list at least 3 items so you can have room to choose while shopping.
Listing gift ideas allow you to narrow your search and find the best deal, shop faster and it also makes you really think about the person you are planning to give the gift to.
Destructive Habit # 3 Shopping on Impulse
People who overspend are usually impulsive buyers. This impulsive behavior is usually brought by the first two habits and by feelings of entitlement or thinking that you deserve it.
It is okay to buy something for yourself as a reward but you have to stay below or within your means and as much as possible, it should still serve an area of your needs.
Destructive Habit # 4 Going crazy on sale
Sales are a great way to buy things cheaper.
However, sometimes, it is not a real sale but a marketing strategy.
At the same time, real sale or not, we tend to buy more of what we need thinking we have money saved so we can spend that money on another item.
To avoid going crazy on sales, go back and practice making a list every time you are visiting a shop.
Buying too many items on sale without thinking will only put you in the losing end.
Destructive Habit # 5 Getting defensive
People who overspend are usually irrational and illogical when shopping. They give different and often absurd reasons for their purchases especially when confronted about it.
Unfortunately, behaving this way and becoming defensive is not helpful. The more we give illogical reasons to why we overspend, the more we cover up our overspending habits.
Destructive Habit # 6 Avoiding reality
People who overspend avoid talking about money because they feel uncomfortable and ashamed by their financial situation.
Again, this behavior only prevents them from the necessary help that they need to fix their situation.
Destructive Habit # 7 Blaming others and their circumstance
This habit can hurt your whole life not just your finances.
When you blame other people and the circumstances around you, you do not take responsibility for your actions.
Stop blaming others and making up reasons, instead be accountable for your actions and start changing your overspending habits.
Always think like Stephen Covey, author of the 7 Habits of Highly Effective People,
“I am not a product of my circumstance. I am a product of my decisions.”
Make this your motto every time you slip and make a mistake. Give yourself time to unlearn old habits and create better ones.
Remember that everything starts with an idea, so put a positive one in your head. Make sure your actions conform to that positive idea.
Keep doing those actions to form good spending habits. Keeping in mind that habits, good or bad, shape your character and character paves your destiny.
Aristotle did say,
“We are what we do. Excellence, then, is not an act but a habit.”
So, shun those habits that make you overspend and start one good habit today.