Have you checked your bank balance halfway through the month and asked where all your money went?
Spending much money (or more) than you make each month will not lead to long-term financial security, but many people do.
If you constantly struggling to cover your bills each month, a solution might be to find a better paying job or take a second to bring in more revenue.
But often the problem is actually self-discipline. The solution to this is to take a hard look at your expenses and plug some holes in your budget.
Let's explore five common reasons for overspending and strategies to reduce the impact on your wallet.
maintain contact with neighboring
Many people feel a need to keep up appearances driving a flashy car, living in a McMansion, or wear designer jeans. This need all Americans to "keep up with the Joneses" can be amplified by seeing plans of Caribbean holidays or new BMW your friend on Facebook.
In fact, Andrew Stephen marketing professors of University of Pittsburgh and Keith Wilcox of Columbia University, found that the high use Facebook can result in less self-control regarding expenditure
the solution :. as you browse Facebook, remember that the status updates tell part of the story.
Your friend may drive a nice set of wheels while drowning in debt. And if you notice that shopping with friends is reflected by peer pressure ( "you have to buy these boots - you deserve it")., Try to shop only place
Getting attracted to the ease of online shopping
Thanks to a host of websites daily-deal and flash sales, you can buy everything from groceries to luxury products for getaways weekend, all without leaving home. And once you do, retailers will try to score repeat business, often sending you sales on items you were not even shopping for first
The solution :. unsubscribe from these emails or set up a filter so they are automatically marked as read and moved to a special email folder.
in this way, you can find this coupon code when you are ready to shop for something you really need, but you will not be tempted by a catchy subject line or pretty graphics to buy some something you do not need.
Drinking and shopping
Alcohol lowers your inhibitions and can lead to purchases you would not have done while you were sober. Retailers know and some actually ramping up their email campaigns in the evenings where consumers are likely to have knocked back a few drinks
The solution :. Do not mix alcohol and online shopping. If you see something you like while you drink, save it in your online shopping cart so you can go back and see again when you are sober and have had the opportunity to consider purchasing.
Succumbing to the "ripple effect"
When buying a new suit, you may also need to pay for alterations and dry cleaning. And maybe you also decide to replace your scratched-up dress shoes and worn shirts.
Welcome to the "ripple effect" where a buying leads to several others. This can also occur occur when, for example, upgrade your car (expensive cars often mean more costly repairs and gas) or your home (not that old futon simply does make your condo board Justice).
The solution: Do your homework and think about large purchases so that you can take into account additional costs in your budget. Every time you buy a car or home, have funds set aside for maintenance.
Receiving a windfall
When you get a decent size wad of money you did not expect (perhaps an inheritance, a bonus or a tax refund) it is tempting to blow it all. This can lead to continue to spend as it seems that money is practically fall into your lap
The solution :. Allocate a small part of a bargain for something fun like a party or a new pair of shoes. Then put the rest in savings or to pay down debt. This way you will be able to enjoy the windfall without getting carried away and let him swing your future expenses.
Have you found yourself overspending? And if so, what strategies have you tried to stop
Photo: ZiOne photos via photopin cc
0 Komentar