Has it ever happened that you start off the month being headstrong about saving money? You steer clear of the displays, buy only the things that you need, and try to watch your expenses! But then, irrespective of your efforts, you may not end up saving the amount of money you wanted to. Especially these days, when different types of credit card are available in the market for you to choose from as per your convenience.
Before even realizing it, you are done spending above the amount you had decided to. It’s okay! There is no need to be hard on yourself, it happens with a lot of us. There can be various reasons behind overspending. One could be that you were not aware of your actual spending habits. Or maybe because you are estimating your expenses, income, spending, and debt payments incorrectly.
Then, ultimately our bank balance goes below the level we had expected. However, if you are ready for taking control of your finances, keep reading. Before getting your next statement and wondering how you can stop overspending through your credit card, read these best tips.
In a lot of cases, identifying the psychological and emotional triggers that make us spend helps us to know how to stop overspending money. If you successfully remove these triggers, it will help you to remove the opportunity and temptation to overspend. Hence, the next time you plan to go out, keep in mind you keep these triggers in check.
Even the little purchases can add up, and as the month-end approaches, you can end up with a dwindling bank account along with severe remorse as a buyer. Keeping a track of your expenses is the key for successful budgeting, as it maintains your accountability for each dirham you spend.
As you become aware of where your funds are being spent, you will come to a better position for making smarter spending decisions. Tiny expenses such as your morning latte, lunch out, and more can add up to your spending more than you would have thought of.
Of course, whipping out your credit card in order to make payment for a purchase is more convenient than counting out bills. However, this convenience is amongst the reasons for overspending in the case of many people.
The convenience with which you can overspend using a card makes it a downside for it. While nonchalantly using your card for making a purchase, many a time you are not aware of how everything is getting added-up to pile up on you at the month-end.
While going out to the grocery store or the mall, carry only that amount of cash that you feel you would be needing, leaving your cards back at home. Unless you are certain that you won’t purchase anything through your card and you plan on paying it off, you don’t need to carry your cards along.
Through this, you can avoid your desire of using the card for that impulsive purchase, which usually is the quickest way to get stuck under debt. Hence, only remember your card when you do not have enough cash or in case of any other emergency.
Setting certain short-term objectives (that are attainable), is an amazing way of staying motivated while altering your spending habits. Keeping such goals constantly reminds you of the reasons why you are controlling your expenses & making some sacrifices.
Now, it is also important that your objectives are specific. Some generic goals such as “reduce expenses on dining out” is not going to help you. Quantitative objectives like “I’ll reduce my expenses on dining out from 200 dirhams to 100 dirhams in a month may provide you with a target that you can aim for, making sure you won’t be shooting in dark.
Suffice to Say!
Learning ways to stop overspending money can be hard, but it is not impossible. It requires dedication and time to avoid it and imbibe new spending habits.
Warning: Sometimes, the temptation of swiping your credit card may rear its oh-so ugly head.
But don’t worry and do not be hard on yourself. Nobody is capable of reforming such habits overnight. After you set certain objectives & safeguards in place, with the time you will turn into a savvy user who knows how to spend money wisely.