Bad habits can be hard to break, especially when it comes to spending money. Avoiding temptation and sticking to a successful budget takes patience and discipline. With most American’s having less than $1,000 on average in savings accounts, financial management should be taught starting at a young age. Without seriously changing any poor spending habits, you could be in real trouble and continuing to slide more into debt.
If you have had a tough week at work, a recent breakup, or a death in the family, the first reaction to start to feel better could be going shopping. While a little relief is necessary to take care of yourself, you will need to watch any overspending, because if the statement balance comes in and you are not able to pay, a downward spiral of interest and debt will accumulate.
Continuing to Use Credit Cards
Paying with credit can feel like an unlimited piggy bank of funds without running out, unless you hit the credit limit of course, but sometimes you can lose the real sense of spending money. Switch to using cash and you can feel the money slip out of your hand to the cashier, at least giving you a second thought about making the purchase.
Going Overboard for Birthday and Holiday Shopping
We all want to make our loved ones happy when it comes to giving gifts, usually spoiling, making ourselves feel good at the same time, knowing the joy we brought, but there should be limits set. Maybe if you were going to typically spend $1000 on Christmas shopping, maybe scale it back a few hundred, I guarantee there will be no love lost.
Like to Please with Gifts
Along the lines of birthday and holiday shopping, we feel the need to please and sometimes that can take the form of spending money we do not have, on expensive dinner, gifts, or booking a trip. As long as you are budgeting for these it can be acceptable, but rash decisions to feel a little extra love could get quite costly, draining any savings and setting yourself further behind.
Maybe Have an Addiction
Maybe if all else fails, you will have to admit that you have a problem and seek to cure your shopping addiction before you get yourself further into trouble with spending. Sometimes people do not learn until they hit rock bottom.
Falling into debt is a recipe for disaster. Have you ever asked yourself, “How does a judgement affect your credit score?” The answer is that is affects it severely. Overspending on credit and failing to make payments will affect your financial future a great deal.