4 Quick Tips to Stop Overspending
You may have been in a situation where you've planned to save some money instead of overspending it. You may have planned to buy only what's necessary, stop eating out and control the urge to online shopping. Unfortunately, at the end of the month, you've ended up spending more than what you've thought you'd. Stopping overspending isn't as easy as it seems to be and if you really want to save money, read on to know four quick and easy tips and tricks.
Why shouldn't you overspend?
In spite of the fact that overspending is a 'subjective' term, most of us tend to spend more than what we should. Though it may not be easy to believe that you're overspending, the earlier you realize the fact, the easier it gets in controlling your urge to spend more. If you're one of those who purchase items because they're passionate about those, ask yourself whether the product is essential for you in the long term. Also, ask yourself what happens if you stop overspending and start saving some money at the end of each month. The more you save, the more you can plan for your retirement, your child's future and even a home for yourself.
#1 Keep a track of your expenses:
When you're determined to save money, the smallest amount of expense should be tracked as it can make a huge difference in your monthly saving target. Besides, you may not notice the small amount that you keep spending each day on your roadside tea or bus ride till you realize that you haven't reached the saving target of the month. Therefore, make sure to follow a daily expense sheet where you input the details of the smallest amount that you've spent. If you can cut down on your morning tea that costs 5 Rupees a cup daily, you can save at least 100 Rupees a month.
#2 Keeping a credit isn't a credit:
You may feel that if you use the credit card to make a purchase in the heat of the moment, you're doing the biggest mistake that must be stopped to stop overspending. Research says that it's easy to follow a strict saving regime if you make your purchases using cash. While you're handing over the cash, you can actually see how much you're spending and what remains in your monthly fund. On the contrary, handing over the credit card doesn't make you realize that the money you're spending is going to add up in the monthly expense.
#3 Gauge your priorities:
Suppose you're planning to buy a car that costs around 15 lakhs with your monthly saving of 25,000. You'll pay 5 lakhs from your pocket and for the rest 10 lakhs, you'll take a car loan. Now, your car loan EMI is around 27,000 a month. With minor modifications in your daily expenses and monthly savings, you can purchase your dream car. However, if you've been wise enough to calculate the future investments that include your retirement plan, child's future, and other expenses, you wouldn't have made the purchase.
#4 Financial goals:
If you set easy to attain financial goals, you can easily save as much as you've aimed at the end of the month. However, the goals should be specific and you must stick to the plan of stopping overspending to achieve the goal. You can stop overspending with time and dedication and change your spending habits to save more for your obligatory future plans.
Parvesh Mittal is an investment banker by profession but gets a real high writing and sharing financial trivia. Check out LatestMobilePlans to find interesting updates on banking and investment.
