Research shows that around 5% of Americans have compulsive buying behavior. Most have large debts and experience guilt and criticism around their spending habits.
If you’re also addicted to spending money, you’re not alone. There are many reasons why you and others are prone to spending money impulsively. And the good news is there are things you can do to stop overspending once and for all.
It won’t be easy, but it will be worth it. You will gain financial independence and be able to sleep at night. Use this guide to start your journey to stop compulsive spending today.
Figure Out the Cause of Your Overspending
Like drug addicts, no one becomes addicted to spending money overnight. There is always a cause. And once you figure out what that cause is, you can tackle it head-on.
Here are some common reasons why you might not be able to stop spending money:
- You feel unfulfilled in other areas of your life, e.g. job, relationship
- You grew up in a low-income household and are making up for it now
- You never learned any money management skills
- You show your affection and generosity with gifts
- You feel compelled to “keep up with the Joneses”
- Social media and advertisements compel you to spend
Let’s say you’ve become addicted to spending because you want to spoil your children. Realizing this truth will help you start showering them with love in non-monetary ways instead.
Create a Strict Monthly Budget
People who have an addiction to spending money either need to get out of debt or start saving. Creating a strict monthly budget will help you achieve both of these goals.
List your “essential” and “non-essential” outgoings. Rent, food, and energy bills are examples of essentials. Most clothes shopping and entertainment are non-essential.
Analyze your bank statements from the last three months to see where your money is going. This will help you figure out where you can cut back so you have money for essentials and savings. Open an account like payactiv.com so you don’t miss any essential payments.
Have an addiction to online shopping but still on the mailing list to 50+ stores? Unsubscribe!
Are you prone to spending too much money on junk food and things you don’t need at the grocery store? Only take cash with you!
Humans only have so much willpower. Remove temptations so you don’t have the opportunity to spend more in the first place.
Get an Accountability Partner
You don’t have to curb your spending habits alone. Confide in a frugal loved one about your situation and ask them to hold you accountable. Talk to them before you spend any money so they can help you stick to your budget.
Focus on Your Money Goals
You might be overspending because you’re not 100% sure what to do with your money. Having financial goals gives you more motivation to cut back on spending and save instead.
Your money goal could be a vacation, wedding, retirement, or anything else important to you. Write the goal on your fridge so you don’t forget about it!
Addicted to Spending Money? Become Addicted to Saving Instead
If you can become addicted to spending money, you can become addicted to saving it. Use this guide to switch up your habits and, with a little determination, you will succeed.
Curbing your spending will help you save money. But increasing your income can too! Browse our business articles to learn about investing, cryptocurrency, and more.