Getting Rid of Bad Spending Habits

By: Andrew Regan

We all like to spend money from time to time, but for some people spending money becomes uncontrollable. Some people are frivolous with money and buy things they don't really want or need, simply because they like the act of spending money in the first place.

If you are young and enjoying the fruits of your first job this might not seem like much to worry about. But in fact it can set off bad spending habits that are harder to get rid of than you might think. Being young with no ties means you will have more disposable cash than someone with a family and commitments will have, but once you have similar commitments yourself you will still find yourself with spending habits that no longer match the level of your spare cash.

The ideal solution to overspending is not to develop that habit in the first place. Try to create a budget each week and allocate money for different uses - including starting and maintaining a savings account to put towards a deposit for your first house, for example.

If you already have a tendency to overspend however, the best strategy for moving forward is to learn exactly what you spend your money on each week. Keep a complete record of everything you buy and pay for in a single week - from any regular bills to the newspaper you buy every day - and try and identify any patterns or spending habits that you seem to have.

Bad spending habits can also lead to debt, and if this is left to run out of control you can soon find yourself owing a considerable sum of money. A good way to regain control in this situation is to consider a debt consolidation loan to bring together all your existing debts into one place. You will then have a single monthly payment to make, which can work out a lot cheaper than having to pay lots of separate bills. It also gets rid of the risk of forgetting to pay one or more of them each month.

The main point to remember if you elect to follow this route is to make sure you don't get back into the same situation again. Cut up any credit cards and adopt new habits that will ensure you don't get back into debt. If you find you have extra money left after paying the bills, put it into a savings account and build up a cushion to protect yourself from any sudden bills or needs that might arise.

In short, bad spending habits can be replaced by good ones. It takes time to do so, but with determination it can lead you to a brighter financial future.

Money Management
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