keep track of unnecessary spending

Five Signs That You Have a Serious Spending Problem

Overspending is a serious issue; it makes us buy things that we don’t need, puts us into debt and prevents us from investing and achieving financial freedom. If you find yourself doing one or more of these things, you may have a serious spending problem.  You may need to adjust your lifestyle, control your spending or better still seek help in overcoming the problem.

Hiding your purchases from others

If you find that you are trying to hide your purchases from others, this is a sign that you are overspending. You may be hiding it from your spouse or friend, either because you know they will be furious or because you owe somebody some money and have not paid it back while claiming that you do not have it. You need to take action quickly and face the problem head on.

Shopping to you is a type of therapy

You may be the type of person who feels better when they are shopping. You find yourself craving to shop or find yourself counting down the days until payday so you can hit the shops. This is a sign that you have a spending problem. Shopping is supposed to provide you with things that you need, it’s not supposed to make you feel better. You’ll find that you are shopping frequently without a shopping list and most of the things you buy are not necessary.

Borrowing to spend on luxuries

Borrowing money is okay, but when it’s done to finance unnecessary spending, there is a problem. If you want to achieve financial freedom, borrow only when it’s necessary. Luxury spending can wait and if you don’t have enough cash, do away with that expense altogether, you’ll thank yourself later.

You do not keep track of your money

If you can’t keep track of what you have and how you spend it, chances are that you are overspending. You can cure this by keeping track of your earnings and how you spend your money. You may be surprised to find some small, forgotten expenses.

Zombie shopper

Are you the kind of a person who walks into a store, and picks random things without a shopping list? You’ll definitely buy more and some of the items might not be necessary.

Once you discover you have a spending issue, take action to address the real problem. Study your bank statements to see where the problem is, cut out unnecessary expenses and choose different, healthier activities other than shopping. If you still have issues controlling your finances, a financial advisor may be necessary to help you on your way.

Disclaimer: The above information is general in nature and not intended to be advice. You should consider seeking professional advice before following any suggestions in this blog/website.