Spending more than you make is a disaster waiting to happen! Take stock of your situation now.
It is very easy in the society that we live in to gain credit, shops, businesses, everyone seems to want to give you money. Whilst, in principal, this would be nice, in reality, they are only doing it to make money!
At the end of the day, you are paying back the money you owe, plus a lot of interest on top.
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Quit Spending More Than You Make
If you are looking to spend your money wisely, to have the things that you need, not necessarily the things that you want. You might need to look at what you are spending and how much you are actually making each month.
If you are spending more than you make, including the items you are putting on credit, then you have a problem.
You can’t continue long-term on this cycle of debt, it will take over your life and you might find yourself in an even worst situation. What you can do is stop, take control and move forward with your life.
- Stop now before it gets worse
- Look at your current situation
- Create a budget
- Work out a plan
Take Back Control
It is time to take back control of your finances and stop letting them just float along.
It might make you uncomfortable, you might find that life throws in a few problems. Nothing is ever easy! But taking control and moving forward is important.
Write down your current situation, note down any money you have and all the bills you have to pay from this money. Do you have any left?
If you have any money left, it doesn’t mean you can go and spend it! If you don’t have any money left, when do you next get paid?
You have to look at the money you have coming in and pay those bills that you owe. This is creating a budget. How you start to create your budget will depend on how your mind’s wired, some people prefer pen and paper while others prefer electronics.
Don’t just rely on your mind, you might forget something and it is more difficult to make the adjustments. Writing them down helps to prevent an error in your calculations.
Take Stock Of The Credit
When you are trying to quit spending more than you make, it is important that you are up-front with yourself the full amount of money that you owe and the interest rate you are paying.
With this information, it is easier to see the full extent of the problem. You can start to see the full picture of where you stand and what you need to do.
The most important point to make is the idea is to stop spending money on things you can’t afford. If you want something, the chances are you might have to save for the item and not just buy it on credit!
We do live in a culture where spending money is something that we can do without thinking about if we can afford it or even really need the item.
- Write down the name of the credit company
- Write down how much you owe
- Write down the interest rate you are paying
- Note the date that you think you will pay off this debt
Cutting Back To Quit Spending More Than You Make
It is easy to come up with a list of areas you can cut back on, remember you must pay your bills and on time. This will help your credit rating and this can and will affect your life in a number of different areas, more than you can imagine!
The hard part is sticking to the areas that you have cut back on!
Suggested areas to look at cutting back:
- Fuel for your car
- Going out
- Eating out
- Buying a coffee on the way to work
- In-app purchases
All these areas add up, by cutting back the aim is to reduce the amount that you are spending to under the amount you have coming in.
It is tough and the most important area that you mustn’t forget is for the occasional treat. Otherwise, it can become really difficult to stay on track!
Finding Your Way
Finding your way in a stressful area isn’t easy, you can often find yourself taking a few steps backwards. That is OK, life isn’t plain sailing and it is about getting the balance right for you.
The more that you can take action and head in the right direction, the easier it becomes in the long-run. However, it isn’t easy, there are always trips in the road and sometimes you will make the wrong decision with your money.
Learn from these mistakes and learn to move forward.
If you are unsure what you need when it comes to creating a budget I have created a small list of the essentials you will need.
- Statements and bills of all the money that you owe
- Wage slips
- Bank statements
- Paper to write down the information
- Pen or pencil to make the notes with
Therefore, if you are trying to quit spending more than you make, it is a difficult path to take. However, it is worth the journey, the changes you have to make and how much more you can appreciate the money that you make.
Spending your money on the things you want and not paying off credit is a better way to live, it allows you so much more freedom than you can imagine and you learn to make the right financial choices for your future too!
What is your best tip for spending less money? Comment below!