Have you blown your budget? Have you given in to impulse spending? Are you worried and kicking yourself for overspending and are wondering how you will cover the credit card payments? If you have fallen into overspending, then you will need to be proactive and look at ways you can tighten your belt and be smarter about your spending habits.
Here are ways that you can recover from your spending splurge.
Any Save is a Save
Even being able to save a little can help you after a big splurge. Take a look at your budget and see where you can cut back and trim expenses. This will create little savings, but whilst these won’t clear your debt overnight they do add up and every bit counts when you are paying off debt.
Save More with Automation
It’s easier than ever to spend money due to credit cards, online shopping, constant promotions and social pressure. This means that for some of us it is harder to save money.
You may have every intention to save money, but if you are struggling to keep to this then you may want to consider auto-deposits into a savings account. This means that once you get paid, the money that you intend on saving is automatically transferred to your savings. It may mean that you will need to readjust your budget to accommodate for this, but that money will be going towards your future goals instead of impulse buying. The amount is up to you, but you will need it to be a comfortable amount that doesn’t put you under financial strain.
Hit the Unsubscribe
Spending money is easy because nowadays it takes just a click of a mouse or a swipe of a card. If you are subscribed to a number of online shops that are constantly pushing discounts and promotions, then hit the unsubscribe button.
These type of emails are designed to make you want to buy more than you need and if you receive these emails everyday then the temptation can be hard to fight, so rather click the unsubscribe button and stop receiving these emails altogether. If you don’t know about their promotions, discounts etc. then you will be less likely to spend.
Create Your Payoff Strategy
Overspending is not just those big once off purchases, but rather anything that has put you into more debt and has led you further away from your budget. You can easily overspend on just one item, but it could be also many items over a period of time that has landed you in debt.
This means that you will need to create a payoff strategy that has specific goals like you want to pay off a certain amount each month and so on. Credit card interest will start to accumulate, so there is no point in waiting and you should start paying off your debt now.
If you are in a bad debt situation and have multiple debts and interest rates and are struggling to keep your head above water, then you may want to consider seeking help from a debt counsellor or even consider a debt consolidation loan depending on how far in debt you are.
Get More on the Side
Whether you are living paycheck to paycheck or if your debt is just mounting faster than what your income can keep up with, then you may want to consider taking on an extra job. If you had made cutbacks on your budget and can’t go any further, then you will need to look for ways you can increase your income. This can be a temporary fix and even just a few hours a week can help. Have a look around for jobs that suit your current situation and look for freelance opportunities.
You can also look around your home and sell things that you no longer need to get some extra cash.
You Can Cure Your Impulse Spending Hangover
Knowing that you have overspent and letting your debt get away from you can be frustrating, but you can recover. Through cutting expenses or boosting your income or even both, you can get your finances back on track. You will need to change your spending habits, fight future temptations and stay disciplined whilst paying off your debt.