I have a really bad problem about spending money. All I do is spend it buying clothes which I clearly don't need anymore since there's no place to put it. I'm young, and I'm already having problems saving my money. I have car payments and I always pay that but that's the only thing I'll have money for, otherwise I'm broke. I keep taking money out of my savings to put into my checking because I have no money in my checking, but now my funds are low in my savings resulting in barley any money in either accounts. HELP ME I WANT TO LEARN HOW TO MANAGE MY MONEY BEFORE IT GETS WORSE! To me, it sounds like you need a hobby or interest other than shopping. Develop an interest, so you have something better to do with your time than wasting money at the mall. 1)Before u pay the bill, think for a minute.Do you really need the dress u gonna buy, then proceed.
2) Take an oath tht u wil save for ur future needs instead of spending on clothes more.
3)Transfer certain amount of ur money to another savings account every month.. Make this a practise and dont touch this account.. U ll have some money at the end of the year!
4)Remember tht money not spent is saved! Yours may not be a spending problem; you do manage to pay your car note, don't you? I think your's is a psychological problem being masked by overspending on clothes and items you don't need.
Do a self check and try to find out the real reason you spend all your money on clothes. Do you tend to buy clothes when you are sad? Is it a way to make yourself feel better? Do you feel that wearing fancy clothes will make you feel/look better? Are you trying to keep up with the Joneses? Do you tend to buy clothes when you are lonely?
I don't mean any disrespect, but, a friend of mine used to spend money aimlessly on clothes. Turns out she used to do it when she was in her manic phase of bipolar disorder. She was recently diagnosed, she's going for counseling, taking her meds and she's actually gotten better. She is using her money wisely now that her real problem is being handled. You need to right down a budget. Not to stop spending completely but see what you can afford. That way if you want to buy something you really want, you know how much you have to save.
There's nothing wrong with spending on yourself on special occasions butyor problem is you do it all the time and get little or no satisfaction. Dont spend MORE than what you are EARNING. And be careful of small expenses. May it be 1$. A small leak can sink a great ship. Think of each item as costing twice what it actually does. For example, to buy a $100 pair of shoes you actually have to earn about $200.
That's because half of your salary goes to taxes, social security, gas cost to work, etc. So you really do have to earn twice what an item costs in order to pay for it. So ask yourself if you're willing to work that long for that item. Here's some tips that I've collected:
*Here are some money mistakes you should never make, courtesy of Woman's Day magazine.*
- Mistake #1: Spending money to make yourself feel better. According to a recent survey, 17% of people use money to boost their self-esteem and 16% spend money to relieve stress. But that's only a temporary high. Once the bills roll in, people usually feel bad about overspending. And to perk up their mood, they head off on another shopping spree, creating a vicious cycle. So how do you stop? The answer is to find ways to relieve stress that don't cost money. For example, taking the dog for a walk, or spending time at the library with a good book. Anything you don't have to reach into your wallet to enjoy.
- Money mistake #2: Not negotiating with creditors. Say your pet gets sick and you're slapped with a $3000 dollar vet bill. A lot of people assume this has to be paid in full right away, so they wipe out their savings account or they pay the bill with their credit card and rack up high interest charges, putting themselves even deeper in debt. The truth is, businesses are usually eager to negotiate a payment plan with you, typically without any extra charges. All you have to do is ask.
- And one last money mistake people make: Thinking it's too late to start saving. It doesn't matter how old you are, if you start saving now, you'll be in good shape when those little emergencies pop up, like a big car repair or a root canal. And when you have money to pay for these things outright, you'll keep yourself from going into debt.
*Ask yourself these questions before you buy anything over that amount.*
- Do I need this item? Sure you want that black skirt, and it would look perfect for that party next Saturday, but that doesn鈥檛 mean you need it. You probably have something just fine that鈥檚 been hanging in your closet for months.
- Can I wait a week to buy this? Let鈥檚 say you鈥檙e in a store and you see a really cool gadget, like one of those portable navigation devices. It鈥檚 way out of your price range, so what do you do? Wait. Most unnecessary purchases are made on the spur of the moment. But Trippon says, that 鈥榞otta-have-it NOW!鈥?feeling only takes a week to dwindle.
- Can I put this money to better use? Remind yourself of what you could do with that money if you spent it on something else 鈥?like your mounting credit card debt. Or saved it. Because that $25 dollar purchase you make today would be worth $600 dollars if you saved it until retirement age.
- Identify your goals. Quick 鈥?name the 5 most important things you want to do with your money. Pay off debt? Buy a house? Take a dream vacation? Write down your goals and rank them in order of priority. Then estimate how much money you鈥檒l need to accomplish them. Keeping your goals in mind will help you put a stop to mindless spending when you鈥檙e out and about.
- Annualize your savings. Meaning, figure out how much things cost per year. For example, if you eliminate one bag of potato chips from your weekly grocery bill, you could save 100 dollars over the course of a year. So calculate what all those little extras are costing you annually, and cut out the ones you can live without.
- Calculate the cost of something in 鈥榳ork hours.鈥?Whenever you鈥檙e tempted to splurge, calculate how long you鈥檇 have to work to afford it. For example, let鈥檚 say you鈥檙e dying for a new home theater. If you鈥檙e earning $40 thousand dollars a year, you鈥檇 have to work full-time for 2 months just to afford it! Chances are, the splurge won鈥檛 be worth all that back-breaking labor.
- Window shop WITHOUT money. When you think about buying something NEW, your brain releases dopamine 鈥?a brain chemical associated with pleasure. And that鈥檚 what makes you more likely to whip out the cash. The fix? When you go window shopping, leave your wallet at HOME. After the dopamine has subsided, you can return to the store later with a clearer head and some self-control.
- Don鈥檛 make shopping a social thing. In studies, shoppers who hit the stores in groups of 3 or more made 7% more impulse purchases than those browsing alone or in pairs 鈥?because it feels like a party! If you REALLY want company, take along one person who ISN鈥橳 a big shopper 鈥?so they can keep your spending in check.
- Pay in cash. Credit cards have a way of fooling people into thinking they鈥檙e not spending money, because you don鈥檛 see the bill for a few weeks. But when you have to part with your hard-earned CASH, you鈥檒l think twice about it. In fact, people paying with cash spend 12 to 18 percent LESS than those who charge their purchases.
All of these tips are from tesh.com. Visit the website listed on the source line to find out more! When you go shopping before you check out look at what your buying and determine do you really need it. I have put things back many times. Put money in your savings and DONT TOUCH IT tell yourself no every time you think about getting money out. I also love to shop but you have to put a stop to buying things you absolutely have no use for. GOOD LUCK!!! Stop robbing the piggy! Please take a look at DaveRamsey.com Buy his Total Money Makeover Book or Financial Peace Book
Another suggestion, buy Suze Orman's book, Young, Fabulous and Broke!
Read them and try to change your behavior. Good luck! |
