4 Tips to End Compulsive Spending

Addiction can present itself in many different forms. While some people find themselves addicted to a substance, others can find themselves enamored with an experience or habit. One common habit is that of compulsive spending. Defined as a disorder that causes obsessive spending and shopping habits to an adverse result.

Compulsive spenders tend to buy things to make themselves feel better; because other people are spending; or simply because something is available. The result of this spending habit can result in massive financial loss and inconceivable amounts of debt. Included here are a few tips to help you curb your compulsive spending and save your financial future.

Debt Assistance

Spot the Source

As with any addictive habit, the reason for your addiction often lies with an emotional problem. People with low self-esteem may shop to boost their external image. Others may find buying things helps them feel valuable, even if they are sinking themselves into debt to do it. Identifying what is triggering you to spend and shop can help you avoid triggers and save money.

Carry Cash

Do you remember when you got your first job? Remember how hard you worked to earn that paycheck? Handing over your hard-earned cash always brought a moment of hesitation and consideration about the value of your dollar. With online banking becoming increasingly popular and debit cards commonly utilized, people have distanced themselves from their money.

Most experts notice that people tend to spend more money when they are simply swiping a credit or debit card. When you have to count out cash, whether it be tens, twenties, or hundreds, the parting is far more painful. One way to cut down on your spending is to eliminate your credit and debit cards and simply spend in cash. Utilizing an envelope system with a budgeted amount of cash for each monthly necessity can help you cut back on your spending to save your finances.

Track Your Spending

With over a third of Americans failing to keep a budget at all, it is no wonder there is a huge debt problem in this country. Taking the time to document your spending and track where your money goes can do a lot towards preventing overspending. Before you can cut back on your compulsive spending, you need to begin documenting it. Assess your spending on paper each month to come to terms with your finances and budget.

Sleep On It

Most experts agree that the best way to curb compulsive spending is to simply wait before you buy. Take time to go home and research the product, as well as sleeping on the decision overnight, before you make a firm choice. Sleeping before big decisions is always a great method for differentiating between needs and wants.

Posted in: Money Saving Tips