4 quick tips to stop overspending
You may have been in a situation where you planned to save some money instead of overspending it. You may have planned to buy only what you need, stop eating out, and control the urge to shop online. Unfortunately, at the end of the month, you ended up spending more than you thought. Stopping overspending isn’t as easy as it sounds, and if you really want to save money, read on for four quick and easy tips and tricks.
Why shouldn’t you overspend?
Even though overspending is a “subjective” term, most of us tend to spend more than we should. Although it may not be easy to believe that you are overspending, the sooner you realize the fact, the easier it will be to control your urge to overspend. If you are one of those who buy items because they are passionate about them, ask yourself if the product is essential for you in the long term. Also, ask yourself what happens if you stop overspending and start saving some money at the end of each month. The more you save, the more you can plan for your retirement, your child’s future, and even a home for yourself.
# 1 Keep track of your expenses:
When you’re determined to save money, you need to keep track of the least amount of expenses, as it can make a big difference to your monthly savings goal. Also, you may not notice the small amount you continue to spend each day on your tea on the road or on your bus trip until you realize you haven’t reached your savings goal for the month. So be sure to follow a daily spending sheet where you enter the details of the smallest amount you have spent. If you can cut down on your morning tea which costs Rs 5 a cup a day, you can save at least Rs 100 a month.
# 2 Maintaining a credit is not a credit:
You may feel that if you use your credit card to make a purchase in the heat of the moment, you are making the biggest mistake that you have to stop to stop overspending. Research says it’s easy to stick to a strict savings regimen if you shop with cash. As you hand over the cash, you can see how much you are spending and what is left in your monthly fund. On the contrary, handing over the credit card does not make you realize that the money you are spending will be added to the monthly expense.
# 3 Measure your priorities:
Suppose you plan to buy a car that costs around 15 lakhs with your monthly savings of 25,000. You will pay 5 lakhs out of pocket, and for the rest 10 lakhs, you will take a car loan. Now the EMI on your car loan is around 27,000 per month. With small modifications to your daily expenses and monthly savings, you can buy the car of your dreams. However, if you’ve been smart enough to calculate future investments that include your retirement plan, your child’s future, and other expenses, you wouldn’t have made the purchase.
# 4 Financial goals:
By setting easy-to-reach financial goals, you can easily save whatever you have planned for the end of the month. However, the goals must be specific and you must stick to the plan to stop overspending to achieve the goal. You can stop overspending with time and dedication and change your spending habits to save more for your mandatory future plans.