No matter your wealth status, you’re at risk for overspending. And most Americans do, according to research, spend beyond their means — often leaning on a credit card to pay for the things they can’t truly afford.
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Putting an end to the dangerous cycle of overspending can be incredibly tough, partly because you need to not just change how you spend, but how you think and possibly how you live. It’s a heavy psychological and philosophical process — but it can be done. Financial expert Rachel Cruze shared how to do it on her blog on Ramsey Solutions. Here are eight ways to stop overspending now.
You may have a broad sense that you’re overspending, but you may not know exactly how you’re overspending or to what extent. Scour your most recent bank and credit card statements to see exactly what you’re spending on. You should also practice mindfulness in retail environments. What are you tempted to buy? What sort of thoughts occur to you when you see something you deem worthy of buying?
“The more aware you are of your spending temptations, the more likely you are to guard yourself against them,” Cruze wrote.
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Budgeting may not sound like the most exciting way to spend an afternoon, but if you want to stop overspending, a firm and realistic budget that addresses your specific needs is a must.
“Start by listing your monthly income, followed by all your monthly expenses,” Cruze wrote. “Be sure to include the basics (starting with food, utilities, housing and transportation) before you budget for things like entertainment or clothing. Then subtract your expenses from your income.The goal is for this number to equal zero — this is called a zero-based budget.”
Now that you know what you spend on and have built parameters around your spending allowance with the zero-based budget, it’s time to take careful inventory of any and all purchases or payments you make. Carve time aside every week to review the previous week’s spending activity.
“It doesn’t matter how large (or small) your income is,” Cruze wrote. “If you’re not tracking your spending, you’ll never be in control of your money. In fact, you’ll always feel like your money is controlling you.”
You’ve probably gathered that if you want to stop overspending, you’re going to have to ditch the takeout food and dining out — at least until you get back total control of your finances. Stick to meal planning and prepping to stay on course here.
“Choose a couple of recipes for the week, head to the store with your list and set aside some time to prep or cook your meals,” Cruze wrote. “Then the next time you’re tempted to hit up the drive-thru after a long day, you can say, ‘We’ve got food at home!’”
The most lethal side effect of overspending is accumulating debt. As you pull the reins on spending, you should see yourself turning to your credit card less and less. Keep up that momentum, and do everything you can to eliminate debt and prevent it from ever entering your life. Cruze recommended going so far as canceling your credit cards.
“If you’re serious about getting your spending under control, go ahead and cancel your credit cards,” Cruze said. “Take debt completely off the table. Because without credit, overspending isn’t even an option!”
You will want to be mindful of the potential impact this could have on your credit score — weigh the pros and cons before doing so.
How does social media correlate with overspending, particularly if you’re not using social media to shop? Even if you’re not “clicking to buy” on Instagram, the effects of scrolling can still spur spending. Research has found that as much as 40% of young adults spend more money on experiences than on necessities solely for the purpose of sharing photos of themselves having pricey fun on social media.
If you can’t cut social media out of your life entirely, bring mindfulness to your scrolling behavior and think about how you may compare your life to the perceived lives of others as curated for social media consumption.
“A good question to ask yourself: ‘Would I still want this if no one else ever sees it?’” Cruze wrote. “You can also cut the comparison by unfollowing those accounts (you know the ones) or limiting your social media use altogether. Trust me, you’ll feel a whole lot lighter!”
Impulse buying is an obvious no-no. But even planned purchases can be wasteful if you don’t put sincere thought into them. Be interrogative of everything you go to buy in a store.
“Take the time to literally imagine how you’ll be using that must-have item a month from now,” Cruze said. “Will that sweater hold up after a few washes? Will your kids still be playing with that overpriced toy set? Will those shoes go with more than one outfit?”
Quitting something you’ve become habituated to is tough. Especially when it can release endorphins, like spending money often does. To help you stay on the track of spending only within your means, spend some time thinking about realistic financial achievements you’d like to see come true for you in the near future. Write these goals down and keep them close by when you’re shopping.
“Your goal could be to pay off debt, save for a car or go on a debt-free vacation,” Cruze said. “Whatever it is, make it specific. Even better if you have a visual reminder you can put on your fridge or in your wallet. That way, every time you’re tempted to buy something, you have to decide if it’s worth delaying your goal for.”
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This article originally appeared on GOBankingRates.com: 8 Ways To Stop Overspending Now, According to Rachel Cruze
