If you are looking for financial tips you can use to curb a sudden or lingering desire to spend a lot of money then you are in the right place. There are many reasons why people feel this urge to spend and paint the town red which can often lead to financial problems once you have satisfied the urge and are faced with multiple receipts for all those money spent.
You might have been wondering why debt problems keep pulling you down and messing with your budget and even long term goals. You inability to control your spending urges might be a big factor on how you are unable to escape debt regardless how much you earn or budget your income. If you spend your money left and right then you won’t have much to work with at the end of the month.
You should know by now how challenging it is to earn money and that you should manage it wisely. Try to look back at those times when you were still looking for a job firing away your credentials to multiple companies at any given day. Those interviews that you had to go to and all those hours that you were just waiting for a feedback if they will hire you or not
On the contrary, spending is the direct opposite and much easier to do especially with the prevalence of credit cards. You did not have to wait anymore for money to come into your account because you can use your card and pay at the end of the month. Because of this, the credit card debt is at a staggering $700 billion according to Nerdwallet.com.
Resist the urge to spend with these money tips
If you are having problems in trying to stop unnecessary spending especially this holiday season, here are a few pointers you can look into. These can be a good start in helping you manage your finances better.
- Breathe and try to relax. One of the first financial tips you need to look into is to develop the ability to just take a step back and calm down when you feel the sudden urge to spend. This is one of the hardest things to do especially when you have been giving in to your spending urges all your life. This is actually one of the tricks people use to stay away from those sale signs in the mall. As soon as they see one, they walk away to fight and resist temptation. They walk around and try to put as much distance as possible between them and the establishment and try to shrug off the desire to buy only because the items are on sale.
- Go back to your budget. Your household budget is one of the most important financial tools that you need to have in your arsenal to manage your money better. It can also help you resist the urge to spend. If you suddenly find yourself trying to manage a situation where you feel you want to spend, just look at your budget and you have a reason not to. Your budget is supposed to show you how much you can allocate for your expenses. It will be the first one to tell you that you do not have the budget to spend on that dress on sale or that new gadget.
- Think of your long term goals. Your long term plans are those financial goals that you want to achieve in a few year’s time. This can be having a specific amount for your retirement or being able to pay down the house. It can also be having enough to help your kids with higher education by saving up for a college fund under their name. If you keep these goals in mind, it can help you stay away from temporary urges. Keep your priorities in mind to help you make decisions that will benefit your finances in the long run.
- Avoid knee jerk decisions. Businessinsider.com noted that the Paris attacks can lead to knee jerk reactions with the way the stock market would behave but the global market but should stabilize shortly after. Knee jerk reactions are sudden reactions to a specific incident like getting a raise or a holiday of spending. If you see your friends and officemates starting to buy expensive gifts for their loved ones, you might be tempted to do the same. If you see a really nice pair of jeans go on sale, it can also tempt you with a knee jerk reaction of buying. If you see that your investments are in peril with a bearish stock market, it might lead you to pull out all your stocks only to miss out on an increase in value. Avoid knee jerk reactions and make informed decisions to help you stay away from spending and losing money in the process.
- Seek the counsel of people you trust. There are people around you that would have more experience than you in managing money. These can be your parents, aunts and uncles, grandparents and even your friends in the banking sector. Be humble and know that you need their help in getting you to make better money decisions. Especially when you are faced with the problem of fighting the urge to spend on things you might not even have a use for. Call them or meet up with them so you can listen to voices of reason. This is one of those financial tips that you need to always keep in mind.
Getting out of hot water
There would be times where you cannot fight the urge to spend foolishly and you end up with senseless expenses coupled with a big dent in your finances. Here are few things you can look into to help you get out of your financial predicament.
- Pay up. If you used your credit card to make the purchase and the bill comes in at the end of the month, you better pay up. Yes you have the option of paying just the minimum amount but you need to remember that this usually comes with a condition. This allows your lender to add numerous fees and penalties to your next payment essentially increasing the amount you should be paying on the retail price of the item you bought. Pay the full amount so you do not get hit with unnecessary charges.
- Can you cancel the transaction? You might have a change of heart and quickly see the light of day right after you click that purchase button. See how you can cancel the transaction to avoid being charged for something you made on impulse. If it was a store purchase then ask the establishment what their policies are on returning purchases and see if you qualify.
- Can you sell the item to someone? When faced with a big expense before the holidays, there are some people that resort to garage sales just to monetize extra items they have around the house. If you already made a purchase for an item that you do not have any use for, try to look for some people you know that might be interested to buy the item off of your hands. Do this as soon as possible so you can still sell it either at retail price or a slight discount.
There are a lot of financial tips that you can look into when you suddenly feel the urge to spend and splurge your money. There is nothing wrong with using your hard earned money to buy things that you need but if you start using it senselessly then you are heading down a debt hole which might be hard to climb out of.