With the constant advertising surrounding us and other temptations to spend money, it is getting more difficult to save money. But with a few easy steps you can prevent deficit spending.
Track your spending
The major part of budgeting is knowing how much money you have coming in, and how much you have going out. It is recommended that you track how you spend your money daily for at least a month. Either keep receipts of everything you spend money on and record them each evening, or keep a small notebook with you and write down each expense as your make it. By tracking your spending you can see what areas you may be able to cut back on, or cut out totally. It is also helpful in making a budget. You can get an idea of how much you should apply to different areas of your budget.
Follow a list
One way to keep your spending in line is to follow a list. Before going to the store, make a list of items you need and stick to the list. You may think of items while at the store that you do need but keep in mind what are needs and wants. If you come in lower than your budgeted amount, then you may be able to purchase some want items.
If you have a problem with spending more money than you have, try to avoid advertising. Most newspapers have store advertisements in most issues. To avoid temptation of buying things you don’t need, do not look at the advertisements unless you are looking for something specific that you do need.
If you go shopping as a hobby, find a different hobby such as walking, exercising, reading, crafts, etc.
Give yourself spending money
When you develop your budget make sure you have some money set a side to spend as you wish. As with dieting, it you restrict yourself too much, you may get frustrated and give up.
Studies have shown that people may spend more when using credit cards rather than cash. When you are spending cash, you feel it more. It is more emotional handing over a large amount of cash than swiping a credit card.
With the cost of many things increasing it is becoming more important to watch how you spend your money to prevent deficit spending. A dollar or two here and there may not seem like a big deal, but they can quickly add up to a larger amount.