What is the best way to curtail bad spending habits?

Answer 1

The best way to change the habit of spending money is as follows.

First you need to make a PLAN for yourself on what you choose to spend money on. In other words make a budget. Include everything; your rent/mortgage, utilities, car, gas, your weekly food budget, your bills, etc. and even entertainment and luxury items that you KNOW you can't live without. Look at the total of your expenses and compare it with the amount of income you make and see what is left over. Plan this as money you will put away.

It's important to pay yourself a little money every month. 10% of your income is a good place to start. But, even if you can't come up with this, try to come up with some money that you set aside each week or month. Even if it is only $20!

WRITE IT DOWN. I can't emphasize that enough. Getting in the habit of writing things down, you are much more inclined to do what you say you do when it is written.

Now, for the next 30 days, carry a small tablet around with you and write down EVERY SINGLE DIME you spend your money on. If you can, write the date, the time, what it was and exactly how much it was, and even the mood you were in when you spent this money. This is SO very powerful. Do not underestimate this. You will find that if you must write it down, sometimes it's just not worth buying it. This creates an AWARENESS about spending and moves it from the realm of HABIT to CHOICE. When you CHOOSE how you are spending your money, you will break the HABIT of overspending.

At the end of the 30 days, compare your budget to what you really spent your money on and then revise the budget for the following month accordingly.

Live within your means. If you make a purchase with a credit card, you must pre-determine a plan in mind as to when you will have it paid off. i.e. if you need to put $500 on a credit card, say: I will pay $200 of this next month, $200 the following month, and $100 the month after that. Do not put another thing on the card until it is paid off. Do not charge unless you can afford to pay it off quickly. Additionally, whatever debt you already have, make a plan to get it paid off as soon as possible. It is so freeing to live without debt. I have been debt free now since January 2001. I don't buy anything unless I have the cash to pay for it.

Determine the reasons you are overspending. People overspend sometimes because they are depressed and trying to make themselves feel better. Look for alternative less costly ways to feel better, read a book, go for a walk, drink some water, call a friend.

For others, they have a hard time holding on to money because of their unconscious beliefs about money or how much they are entitled to have at any one time. Examine what you heard about money as you were growing up and using positive affirmations and goal setting to change your relationship with money.

Best wishes,

Victoria Wizell
www.hyptalk.com
http://hypnosis.hyptalk.com/pd_manifest_money.cfm

Answer 2

this is what i did-i wrote down everything i spent for a month (even if it was a pack of gum). then i began to look at my income and the payouts and formed a budget. i've stuck to it now for 15 years and other than my house, i have no debt-we have nice cars, a nice home, nice clothes and shoes but nothing overly priced. i shop for bargains if i NEED something and use coupons for the groceries. 10% of my take home pay goes straight to savings (i also have a pretax retirement account), 10% of any windfalls (like tax returns) goes into my IRA. the biggie is having the guts to follow through with writing it all down-when you see that list, it's a kick in the teeth to see where your money is really going but it really helps to snap you into reality.

Answer 3

Make a list buy only what's on the list. Take a set amount of money and leave the rest at home. Leave the cards and the checkbook at home so you can't spend anymore. Take only what you need.

Answer 4

Cut up your credit cards and start spending CASH only. Create a budget and when you go to the store, only take enough to buy what's on your list. That will help prevent impulse buying - if you don't have the cash for it, you can't afford it.

Answer 5

Hypwoman gave you some excellent advice. I especially like the part about determining the reasons for your overspending.

Answer 6

Make a budget, give yourself an allowance and most importantly find someone to be accountable to.

Answer 7

Limit the acess that you hav to money, get rid of the credit cards and make it as if you have no money what so ever.

Answer 8

Don't invest any more than 50% of what you got, in a monthly basis. This will take your profits up.

Answer 9

girl you need to get a life, you don't need to be on here if you're going to let the things that ppl say offend you, ta ta

Answer 10

Make a budget and stick to it.