How To Stop Spending Too Much?

Are you an over spender? Take this quiz to find out.

photo by marc from Bort's

photo by marc from Bort's

  1. Are you still paying off last year’s Christmas presents?
  2. Is shopping your favorite pastime?
  3. Have you paid overdraft fees in the past year?
  4. Do you have to hold bills till you paycheck has been deposited?
  5. Have you used the term “Steal from Peter to pay Paul” regarding your bills lately?
  6. Are your credit cards nearly maxed out?
  7. Do you have more than 2 credit cards?
  8. Are you often paying “minimums” on your credit cards?
  9. Do you drive with less than a full tank just so you have enough money for lunch?
  10. Do clerks at any store (other than your grocer) know you by name?

You are spending too much if you answered “yes” more often than “no.

If you really want to get control of your finances the first thing  you must do is recognize that becoming debt free at least, and accumulating wealth at most is not something that you do. It is not a program or an exercise it is a way of life.

You must recognize that you will never improve your finances if you cannot control you spending. Once you have done this you can make the decision that can change your life, do you want to change? If you want to change you must take a realistic look at your life and how you live it. You must consider what are you spending your money on versus what must you spend money on.

The key to this lifestyle change is learning to live on less than you earn. You must have “extra” money was your needs are addressed. In the beginning this extra money can go towards debts, later this extra money can go towards savings. Eventually your extra money can go towards investments.

This is what I did. This is what the wealthy do. This is what you can do as well.

Stop spending, start saving.

Would you like to learn how to save more? Sign up for my RSS feed or enter your email address here to receive updates directly to your inbox. Or take the remainder of the weekend and troll my friends in the blogroll on the right. There are hundreds of great ideas and suggestions on how to save more, spend less and invest better!

2 comments to How To Stop Spending Too Much?

  • If saving could become a popular trend we be so much better off.
    I really thing it might. And the environment would get a little help too. Keep the tips flowing!

  • Mudacator

    Thank you Grampa. While our frugal ways may have come home to roost, like our children, they will probably leave the nest someday.

    My grandparents lived through the depression and it is evident in their spending a saving habits. My parents did not and it is evident in their spending habits.

    Only time will tell how this crisis will affect us long-term and those that follow.