How to deal with spending problems
Spending problems are real, and it is common to find people living with it without ever realizing how it impacts their finances, personal dreams, and future. Usually, compulsive shopping leads to reckless spending, which can lead to debt and low credit scores.
But shopping can also make you feel better, and sometimes it comes with a guilt-ridden feeling when you receive your credit card statement. Does it sound like you?
You’re not alone. Up to 16% of the American adult population is affected by compulsive overspending. And personal finances are heavily influenced by your spending habits.
When you combine what feels good, along with the convenience of shopping whenever you want, it’s easy to get carried away. There may be a few of these situations that apply to you if you are prone to reckless spending:
- Shopping makes you feel better — and guilty, sometimes
- Shopping without a purpose
- Undisclosed spending
- Growing debt
If these problems are common to you, you have to be aware that money plays a key role in achieving your life goals.
Getting your spending under control starts with setting goals. You can have financial goals of any length, from breaking the paycheck-to-paycheck cycle to traveling around the world.
With a clear idea of your goals, consider how much it will take to accomplish them. Save and invest every month, even if it’s less than you need to accomplish your goals, focus on creating a habit in the first place. Even small changes over time can lead to big results when it comes to curbing habits.
Easy steps to wise spending:
- Shop for groceries with intention: you know what you need because you have a list, even for junk food.
- Shop online with purpose: be aware of small online expenses and don’t buy things you don’t need right now. Do not buy something today if you can get it tomorrow.
- Stop solving problems with new products: if you can fix something, you can save money.
- Social media detox: unfollow and mute pages that make you consume more. Keep an eye on your consumer triggers.
- Make a budget: you can set aside money for pampering yourself. No need to be greedy, but you should know how much you can spend per month to reach your financial goals.
Also, remember that reckless spending can be a sign of anxiety and other mental challenges, to which we are all exposed. So, remember not to compare yourself with anybody and exercise every day, even if just for 20 minutes. It helps to fight anxiety and depression by balancing the hormones in your brain.
Finally, if you’ve just discovered you might have spending problems, don’t worry and be kind to yourself. Making one habit change at a time is more powerful than you can ever imagine. You just need to move forward.
