The good news is you
can have a complete control over your spending with some
guidance. If it is really a serious matter for you, you will do it.
Remember: When you're
using your credit cards, you're spending money which is not yours.
This money you do not have. It is only a debt. You have good
intentions to pay it, but this is not enough.
Be alert and conscious
of how much you owe your credit card/s. And avoid being careless or
assuming that the money will be miraculously available by the end of
the month, or by the due payment time.
Using multiple number
of credit cards is not wise. One is more than enough, unless there is
a good reason for doing this.
Separate your money
spending from your emotions. To impress your boyfriend, you realized
that you tend to spend more while you are around him. No No. Stop
this habit immediately. It is not fun at all to put more money in
items that you do not really need.
Only use your credit
card or your cash in purchasing things that you really need them, do
not buy just because this item was on sale. 😲
Spending should be
guided by your financial goals. If you're saving in order to have a down-payment for a home, do not go and buy a new car, or sponsor a
welcome party for a friend. It is unwise to do similar expenditure.
Overspending is when
you take the wrong decision contradicting your financial planning. It
will always keep you far away from accomplishing your money goals.
If you are out of
tricks and you really can not control yourself using your credit
cards, pls get rid of them, and never carry them in your purse or
wallet, since it is obvious for you that it is the only solution.
Some people would
advise you to go to professional consultant, but you really do not
need that, unless you're dealing with millions. You are your own
planner, manager, and best accountant.
For God's sake, it is
your money, who would ever be better than you in taking care of your
money?!
Watch yourself
carefully to know what your good/bad habits are when it comes to
spending money. Are you totally dependent on your ATM machine,
withdrawing all the time, on a daily basis? Oh! If this is the case,
there must be something wrong. Pay more attention. You should not see
the ATM machine except once a month, when you deposit your checks.
Sit with yourself, and put on paper all the categories that you spend at: Food, home, travel, medicine, etc.. Know how much you spend every month on each of these categories. See if you're making enough money to spend that amount or not.
Are you spending all
your income? If yes, this is also not right. You need to have
savings. No one knows what may happen in the future. You better have
some money stashed for emergencies.
Planning:
It is very important
to know which spending is fixed (recurring in the same amount every
month). For example, you pay $ 100 for your cellphone plan every
month. Also changeable but recurring, you need to have an approximate
figure. For instance, electricity varies every month according to
your consumption, but it would be within the range of $50-$70/month.
Other expenditure
could be for fun not required to be in your budget at all if you need
to cut it off completely, but if you have extra money and you want to
spend it on a sport you like or a hobby, it is still OK, but plan it
too in you budget.
Stick to your plan,
unless there is an emergency.
Management:
1. Manage Your Budget
There many ways to
track and control spending. You need to be aware of everything
related to your money. Do not leave it unattended, it is like your
own kid. Can you leave her/him unattended if doesn't have a logic of
her/his own yet. Money does not know any logic. It can go wild.
2. Follow Your Plan
Keep in mind your priorities.
3. Be Honest with Yourself
Do not deceive yourself. Be a good guard on your own money,
and do not neglect it.
4. Befriend with
someone who is wise with money, or you admire her/his decisions when
it comes to money. We get along better with people who feel the same
towards the same approaches.
5. Update and Maintain
an Emergency Fund
Consider it
untouchable, and act accordingly.
6. Continue Finding
Methods of Saving
But do not live
miserably, live within your limits, you will be happier, and start
your saving journey, the sooner the better.
7. Educate Yourself
about Money
Catch any chance that
would provide you with more knowledge about money, and give up any
habits that drag you to more spending.
Probably we should
continue talking more about few more points, but until then, just
remember that money has no brains; you can call it rambunctious, like
my son's dog! 😨
References:
. What is budgeting?
. No Money Worries.
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