Planning a budget is easy enough, but following through with your plans can be the tricky part. It’s not uncommon to find yourself in situations where you’re tempted to spend more money than you had planned, so if you can identify some of those scenarios beforehand, you can anticipate how to handle them. Check out some of the most common instances when you’re most likely to overspend and how you can side-step them to stay on track:
1. You’re on vacation. When in Rome, right? Wrong! Don’t use vacation as an excuse to throw money around. Hopefully you’ve budgeted for your hotel and travel costs, but sometimes it’s easy to forget about what happens and where your money might go when you actually get to your destination – meals out in restaurants, souvenirs, items you might have forgotten at home. It’s ok to do some things you wouldn’t ordinarily do, but keep unnecessary spending to a minimum by planning where you’ll go and what you’ll need ahead of time.
2. Your friends spend money thoughtlessly. There’s always that one person that buys the next round of drinks or shops for designer labels frequently just for the fun of it. No one ever wants to look like the cheapskate friend, but chances are, someone else in the group is probably feeling just like you. Buddy up with another person who’s also looking to keep costs to a minimum. Surround yourself with likeminded people that will help you stay on track.
3. You stumble upon some extra cash. Your budget is carefully planned, and your bills and savings are all taken care of while still allowing some funds for personal spending. Maybe you get a raise at work or your tax refund comes, and suddenly you find yourself with a little money to spare. It’s tempting to use that money for a mini shopping spree, but you’re better off stashing that cash away into savings, or making an extra payment on any outstanding debts you might owe. You already know you can function on what you already make per month, so use that extra money to grow your savings and get closer to your financial goals.
4. There’s a sale happening at the mall. My biggest weakness? Those huge signs that stores hang in their windows that say “Everything up to 50% off.” Tactics like this appeal to those of us that are always looking for the best deal, thinking we’re saving the most money. The truth is, we’re not really saving any money at all if we’re buying things we wouldn’t have ordinarily bought if it wasn’t on sale. In the market for a new blender and you find one marked down by 25%? Go for it! Find a state-of-the-art television at a discount? Think again. Avoid these temptations by heading out to stores only when you need to, and keep window shopping to a minimum.
5. You don’t want to miss out. It’s only normal to want to be included in social events and outings, but those things don’t always fit into our budgets, especially if they happen frequently. Don’t feel bad about saying no when you just can’t swing it. If these people are really your friends, they’ll totally understand, and they might even suggest a more affordable alternative instead of taking a rain check.
How do you avoid overspending? What are some tactics you use for sticking to your budget while still having fun?
