If you find yourself overspending in the luxury section of your budget, then you need to take a look at the emotions behind the impulse that causes us to buy, or even worse put on a credit card, something that we simply cannot afford.
Here are a few tips for getting control of your self- control!
Often times impulsive spending is caused by depression.
This is no different than eating chips or candy when you are feeling down. Shopping comes with somewhat of a “high” that makes you feel good temporarily but is followed by a crash.
To avoid this you first have to be “aware” of the situation and the overall feeling, and then combat it by projecting yourself in the future when you get the credit card bill and feel even worse than you did before you went shopping.
Another simple solution is to do a short mediation to relieve yourself of the feeling of being sad at that moment. It’s much easier to confront the situation head on, no matter how hard it seems, than to bury your pain in debt or spending the electric bill on a pair of shoes.
I had a friend tell me that it’s easy to whip out a credit card because it’s the society norm.
It doesn’t matter what the commercials tell you, it is not in your best interest to have debt outside of your house, vehicle and a very well thought out education or business plan. Debt should not be a society norm, and if you really want something special, it’s best to set the money aside and pay for it with cash.
After all, you will have to come up with the monthly payment plan on the credit card along with the ridiculous interest rate, and most luxury items purchased on a whim, don’t last as long as the credit card payments do.
Are you keeping up with the Joneses?
This is, in my opinion, the number one cause of excessive luxury spending. You will never be able to keep up with the Joneses, because there will always be “Joneses” with more money and more toys. It’s a sinking ship to try to keep up with other people, because you will end up with monthly bills, repairs and maintenance of toys that you cannot even enjoy due to the financial strain.
Do yourself a favor and do some homework on the actual ongoing monthly expense of your toy and buy what you can afford, not what your neighbor can afford. By the way, your neighbor probably can’t afford it either.
Are you caught up in name brands?
There are some name brands that I love, but I find that combining those more expensive pieces with budget items works wonders for lifting the entire outfit up. I have worked with many people in the entertainment industry that buy discounted clothes because they are in the public eye and don’t want to repeat outfits on television.
They then add high quality jewelry (which last a lot longer than the clothes themselves) as well as belts and scarves to turn a simple dress into a powerhouse outfit!
Do the Holidays cause you to overspend?
With Halloween right around the corner, and the Holidays after that, many people overspend on their budget for a great costume or outfit for a party. The Holidays are stressful enough, so please know that some of the best, most unique Halloween outfits are home made.
Get creative, use what you have along with some extras at an inexpensive place like Party City and you just might be the star of the party! The same is true for Christmas parties – you can get very festive by having a party with friends to “bling” out a boring sweater into a festive piece for any event.
Stay true to you and your holidays will be that much brighter.