Are you worried that you are spending too much money? Perhaps the more worrying situation is when you think that you are not. It certainly won’t do any harm to take a good look at your financial situation and spending patterns; if a healthy picture emerges then keep up the good work. But many people are in denial about how much money they are getting through. Here are some signs that you are spending too much money …
1. Minimum Payments
One of the surest signs that you are spending too much money is when you can only make minimum payments on your credit cards. The problem is that the interest mounts up and it will take years to pay off. If you are in this situation, stop spending on your cards, as you are just adding to the debt.
2. Tags on Clothes
Look through your closets – how many items are in there that still have the price tags on them? If you have bought items that you haven´t worn, that can be a sign that you are a bit too fond of shopping. If you have bags full of unworn item, then you really have a problem and need to address it.
3. Unpaid Bills
Do your bills ever go unpaid because you don’t have the cash to settle them? I can’t emphasise enough that essential bills must be paid before you spend money on entertainment and non-essentials. Sure, we all like treats and spoiling ourselves, but if you can’t pay the rent you won’t have anywhere to keep your lovely new clothes!
4. Things You Don’t Use
These days we are sold the idea that we need the latest gadgets in order to run our lives. This can lead to having a lot of items that you don’t actually use much, if at all. Are you are spending too much money on electronic gadgets and expensive kitchen equipment that ends up gathering dust?
5. Putting Essentials on Credit Cards
This is a real red flag. Sure, we all experience times when it’s hard to make ends meet on our income, but if you have to use your credit cards to pay essential bills or buy food, then you are heading for trouble. Look at ways of cutting down your expenses or increasing your income.
6. Keeping up with Others
If your friends have more money than you, it can be very tempting to try to live the same lifestyle. But you should never be ashamed of having less money than they do. Besides, true friends will understand that you can’t spend as much as they do. Never try to keep up with other people, or you will end up in serious financial trouble.
7. Good Income, No Savings
Do you have absolutely no savings in spite of a good income? Then it’s time to reassess your spending and look at where your money goes, because you are clearly spending too much. You can’t count on always having the same income (or higher), so it’s essential to save as much as you can, not spend it all.
8. Multiples of Same Item
Some of us have so much in our closets that we don’t actually realise that we have ten black dresses, six pairs of nearly identical shoes, and the same top in every shade. Or we know that we do, but just can’t resist another “bargain”. If this is you, then you may have a spending problem – nobody needs dozens of the same item.
Spending too much can not only cause you short-term problems, but have a serious impact on your long-term financial situation. It can damage your financial security and lead you into debt. Shopping is fun, but wouldn’t you rather have security? It’s much better to know that you can pay your bills and cover any emergencies. Have you ever been a shopaholic, and how did living beyond your means impact on your life?