We all have our vices when it comes to spending large sums of money. Personally, I'm not a huge shopper when it comes to buying clothes or jewelry, but food take-out and travel get to swiping that debit card. It's like my brain stops thinking about my financial boundaries and all of a sudden I have unlimited money. In reality, those financial boundaries are still there and all I'm doing is digging myself into a deeper hole.
To get control of your spending be mindful of these 5 steps:
The boundaries are always there - We all have financial limitations even if you are a multi-millionaire. That does not mean that you can't live your best life, go on crazy vacations, or plan fun outings with friends, but it does mean that the boundaries are there you just need to lay out action plans to achieve the goals you are looking to hit.
Create a budget within your monthly financial goals - Making a budget inside your budget will help you control how you spend in specific areas. For example, if you have a crazy vacation you are planning, start a separate saving account to pile money. This way as deals come up you have the funds, or you have the ability to spread out your spending. This will be a lifesaver when doing money allocation.
Look at your spending weekly - Having the program Quicken has transformed the way I think about my spending. On Sunday, every week I evaluate my spending. If I've spent a lot on take-out (which is my kryptonite) for the week, it means that I need to adjust and do more meal prepping for the following week. Doing this will keep your financial goals at the front of your mind while maintaining your boundaries.
Think about large purchases for 24-hours before buying - Anytime I'm spending a lot of money, I try to take 24-hours before doing the purchase. When I went wedding dress shopping I focused on one bridal boutique because for me having too many options it makes me second guess everything. I spent 2-hours trying on dresses and there were two dresses that I loved. These dresses ranged from $1200 to $1500. Spending that kind of money on a dress that I was only going to wear for one day made me struggle. After trying these two dresses on 4 different times, I knew I needed to step away and clear my mind. This allowed me to look at both of them strategically, not make a rash decision, and elevate any pressure I was putting on myself.
A savings account is your friend - This allow you to plan ahead and develop goals!