Over Spending – ‘To spend more than One Can Afford’

We all like to over indulge in things we can’t actually afford. Some people may gaze at their funds and frivolously spend, but avoid the reality of bills. We may be guilty of swiping or waving our cards and refusing to check the balance each time; because you just got paid yesterday. Firstly let’s look at the possible reasons why we over spend?

  • We hate using words like ‘I can’t afford that’ or ‘I can’t afford to go out’
  • Seeing majority of your pay cheque going towards bills is depressing
  • Wanting that stress free feeling of no financial trouble and dealing with problems later
  • Living in a fantasy that you have more disposable income than you actually have
  • Shopping has become a hobby
  • Short lived feeling of the ability to spend freely

The three basic things we need to work on are social, avoidance and reality. Go through accounts and see what you’re actually spending money on, hopefully there is a break through with certain habits.

You need to take charge! Some helpful hints & Ideas below:

  • Physically write down your needs vs wants on paper. ‘Do I really need that?’
  • Figure out where your money is actually going
  • Shop your own closet. Rediscover things you have forgotten about
  • Plan meals and avoid eating out
  • Don’t spend simply because you have money in your bank account
  • Get a cheaper hobby! Start running?
  • Write down how difficult life is without money and gain perspective ‘when you have too much month at the end of your money’
  • Write a budget
  • Pay in cash and you can physically see money going
  • Browsing the shops for fun is not an activity
  • Don’t just buy something because it’s on sale – that is not a reason

Hopefully you can recognise your spending habits and find some hits that relate to you.

Disclaimer: The above information is general in nature and not intended to be financial advice. You should consider seeking professional advice before following any suggestions in this blog/website.

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