Why Is Financial Health Literacy So Important?

Is your financial literacy up to scratch? Many people don’t think about it until they’re faced with a financial puzzle to work through, whether it’s applying for a mortgage, picking a savings account, or deciding whether to save for retirement. 

Improve Your Spending Habits: 7 Tips to Stop Overspending

Approximately 77 percent of Americans feel anxious about their financial situation.

Approximately 77 percent of Americans feel anxious about their financial situation.

Does this sound like you? Do you need to spend less and save more?

If you know you need to stop overspending but don't know where to start, keep reading. Listed below are 7 tips you can implement today.

1. Reduce Social Media Scrolling

Have you noticed that social media apps have essentially become shopping apps over the last couple of years?

Now, you can make purchases through Facebook and Instagram with just a couple of clicks. If you find yourself getting lured in by social media ads, try to reduce your scrolling by giving yourself a daily time limit. 

2. Track Your Expenses

Roughly one-third of Americans don't have a budget and can't tell you where their money goes each month. If you're not tracking your expenses, it's hard to know where you're overspending and where you can make positive changes.  

3. Use Cash Instead of Cards

Many people find that they're less inclined to overspend when they're paying with cash instead of a debit or credit card. Seeing the cash leave your wallet has a profound effect on your spending tendencies and can make you more aware when you're out shopping. 

4. Always Question Sales

It's easy to get sucked into spending when there's a big sale going on. Remember, though, if you're spending money on items you don't need, it doesn't matter that you're getting them at a discount.

You're still overspending if you didn't make room for that purchase in your budget, no matter how steeply the price has been cut.

5. Make Online Shopping Harder

Make it harder for yourself to shop online by deleting credit or debit card information from your computer. If you want to make a purchase, you have to get up, find your wallet, and type in the numbers by hand. This gives you a chance to pause and consider whether or not you truly want to buy something.

6. Set a Savings Goal

To stop spending money on things you don't need, give yourself a specific savings goal to work toward.

When you have a number in mind, work backward and create a plan that will help you get there. For example, you may need to cut large bills, such as your cable bill, or you might want to cut out Target runs or trips to Starbucks so you can put that money in your savings account.  

7. Ask for Help

If you're still having a hard time reducing your spending after implementing these other strategies, it's okay to ask for help. Talk to a friend or a family member and let them know that you need a little outside accountability to get your spending under control.

Maybe you can call them when you're about to make an impulse purchase. Then, they can advise you on whether or not it's actually needed.

Stop Overspending Today

Are you ready to overcome your money addiction and stop overspending? Keep these tips in mind and you'll have a much easier time staying on top of your monthly expenses and getting your finances under control.

 

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