Do you get shocked when you see your monthly bank statement? Have you ever written a long list of all the things you plan to do when “that” money hits your account? Then as soon as it does, you forget everything you planned and only remember them when you’re broke again. Well, that’s what happens when you don’t have any control over your spending habits and truth be told, it is one of the hardest things to do. So here are three easy tips on how to stop overspending and increase your earnings.
Stick to Cash
The first tip on how to stop overspending and increase your earnings is to spend in cash. One of the biggest causes of overspending is the use of debit/credit cards. It’s far easier to pull out your card to make a purchase than it is to pull out wads of cash from your wallet, but this convenience might be killing you financially. When you make payments in cash, it forces you to stick to the amount you have. To curb overspending, form a habit of making most of your purchases in cash.
Save Up for Big Purchases
Another tip on how to stop overspending and increase your earnings is to save up for big purchases. Whether a purchase is big or small largely depends on the perception of the person involved. However, you know what your finances look like in terms of how you earn and what you earn. Therefore, if a purchase is considered a “big one”, then it’s best to save up for it, instead of going into unnecessary debts or spending all that you currently have to acquire it. For instance, it would make more sense to save up for a car than spend all that you currently have to buy one, especially when the car would not earn you more money.
Consider Value, not Cost
This is our last tip on how to stop overspending and increase your earnings. It’s easy to get carried away when shopping, especially when you think you have a lot of money to spend. When purchasing any item, think about its potential value to you, now and in the future. An item may be cheap, but if it’s useless to you, then you’ve wasted some good money getting it.
Curbing an overspending habit is tough because every now and then, you feel the urge to just swipe your card. Don’t beat yourself up; it happens to the best of us. But practice leads to perfection. So start with baby steps, like putting a cap on your spending this weekend when you go shopping or chilling with your buds.