Around 5 percent of Americans are seriously dependent on spending, reports The Recovery Village. If you spend without thinking about it then you can’t pay the bills, or if you want to spend money you may have a money addiction problem. And if you do, you are not alone.
Why it is important to defeat a money addiction
What are the effects of spending addiction? According to the Recovery Village survey, 58 percent of those who are seriously dependent on spending have high debts and 42 percent cannot pay their debts. If you are a money addict, finding a new direction is important. Here are 10 strategies that can help overcome spending addiction and help you recover.
10 strategies against money addiction
1. Be honest
You have to be completely honest with yourself. You don’t have to publicly admit your mistakes, but you do need to be honest with yourself and admit that you are making mistakes.
A good tool for financial honesty is to get an accurate picture of your financial health. When it comes to personal finance, the numbers rarely lie. Calculate your wealth to see the overall financial health of your life. Are you happy where you are
2. Find out what you want to change
It is easy to decide that you want to change your spending, but it is not an easy change. Everyone has to spend money sometimes. You need to focus more carefully on what you want to change.
Which spending decisions do you regret to say? What decisions made you realize that you were addicted to spending? Most importantly, what distinguishes these decisions and decisions from the ones you want to keep?
Ask yourself if there are certain places that are triggering your spending. Or it can be certain people or objects. You don’t need exact answers just yet, just a feeling that real change requires meaningful, specific changes.
3. Talk to loved ones and ask for help
If you want to break your spending addiction, you won’t be doing it alone. Talk to some key people in your life, especially those who did not overspend and who you strongly support, and seek their help.
Tell them the honest truth: you are addicted to spending, you have identified it in yourself, you feel like it is holding you back from your goals, and you want to change. Tell them that you need help with your spending addiction, even if you don’t immediately know what it would mean. What you need at this point is support.
4. Take an inventory of your expenses
View your recent bank and credit card statements and evaluate your expenses. How much did you spend on nonessential things? All in all for the past few months. This number tells the truth.
At this point, you might want to categorize these expenses a bit. Sort your expenses into groups that matter to you. You should sort them by expenses you regret and expenses you don’t regret. However, you may want to consider other categories as well, such as: B. all expenses for a particular location. Add up these categories and see how much you have spent on these categories in the last month.
5. Look for patterns
Take the expenses you regret and sort them out a little further. Are there companies that keep popping up? Are there any expenses that keep popping up, especially groceries, hobby items, or entertainment items?
Within these regrettable expenses, you are likely to find patterns, and it is these patterns that you must break if you are to overcome spending addiction.
6. Remove roadblocks
To break a bad pattern in your life, you need to remove roadblocks to complicate that pattern and, in some cases, open up new avenues for alternative behavior.
Suppose you are addicted to spending online on a particular website. One thing you can do is delete your billing information from this website and change the password to something difficult to enter without your browser remembering this new password. This will put in place a roadblock which will force you to make extra efforts to shop there. This is extremely effective in reducing impulsive online spending.
There are plenty of potential roadblocks that you can use. You can literally cut up your credit card. You can find a less enticing route to and from work. You can use another grocery store with less tempting choices. You can stop hanging out with friends who are just encouraging you to spend and then fill your social calendar with friends who are not just about spending.
Make it hard for yourself to spend and you will make it easier not to spend.
7. Look at those affected
For some, seeing the impact of your spending decisions on the lives of others can have a profound effect. Look at the cost of your spending addiction using the numbers you calculated earlier, and then consider what that money could have done for those affected by your decisions.
Perhaps you could have afforded to save up for your child’s college education. Perhaps instead of making a quick, regretful phone call, you would have had the money to give your mother a real Mother’s Day present. Could you give your child piano lessons if you hadn’t spent all the money?
Also consider the impact on you. What would your life be like if you had all that money back? Would you have any debts at all? Would you worry about your finances? Use the picture of a better future as motivation.
8. Discover frugal hedonism
Many people see spending cuts as misery. They think that living frugally will be a much less enjoyable option.
Look at it through a different lens, that of frugal hedonism. Frugal hedonism refers to seeking pleasure by restricting little or no expenses. Because of this limitation, the point is to open up to new experiences, especially social ones.
Make it your intention to try a variety of new things with a variety of people. There are endless things to do in the world so just filter that through what is cheap and start exploring a whole new world.
9. Have a debt settlement plan
As your commitment to breaking your money addiction increases, success will follow and you will see this in the form of more money in your bank account. Start using it wisely and don’t let yourself be seduced.
For most spending addicts, debt is a real problem to be overcome. You can start by creating and running a debt settlement plan, covering the monthly payments for all debts and making additional payments for the debts at the top of your debt settlement list. This will help you to become debt-free as efficiently as possible.
Before you dive in, have a healthy emergency fund in place. You can accomplish this by opening a new savings account with a new bank. You want this emergency fund to have some separation from your normal accounts but still be easily accessible. Hence, a new bank, possibly an online bank, is a good choice.
10. Start a healthy budget with goals
The next step on your financial path is to identify your big long-term life goals after overcoming your spending addiction. What are you working for Break it down into a wise financial goal.
From there, use that goal and your current spending habits to create a workable budget based on your own life and the spending categories that are natural to you. This will be your ship to take you to the financial goal of your dreams.
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