How to Stop Spending Too Much Money

Have You Ever Spent Too Much Money and Later Felt Regret?

It’s a feeling that almost all of us have had during our lives. We get caught up in the moment or are peer-pressured by our friends, and we end up making one or many purchases that we later come to regret. Whether it be clothes, food, drinks, a new car or even a new home. Later on, once we contemplate how much money we actually spent, the pain of regret starts to sneak up on us. Once we realize that we actually have to pay that credit card bill with real money, all of sudden we wish we had been more practical with our money.

Back when I was first out of college, I had way too many nights where I spent too much money out at the bars with friends. The excitement of making real money led me to make some poor financial decisions. I would wake up the next day and look at my credit card statement only to see way too many charges from the night before, sometimes hundreds of dollars over the course of a single weekend.

The pain of regret became stronger than the exciting feeling you get while having a night out with friends.

I realized how much I’d have to work in order to pay for those nights out and bar tabs. And I’d have the same feeling whenever I bought something that was a bit impulsive. Too many expensive meals out on the weekends, too many new clothes and too many shiny electronics that I’d get bored of after a few days. Things that I was excited about but never really needed.

So how can we go about preventing ourselves from making these same mistakes again and again?

 

Focus On Our Pain Point

What is it that makes you tick? What keeps you up at night?

Maybe it’s your job that you don’t enjoy, or the fact that you are paying high interest on student loans or credit card debt. You need to be saving $1,000/month to pay off your debt and not spending $500/month on clothes, or you need to get your expenses under control so that you can leave your job and find something more enjoyable that may have lower pay.

Another option is to think about what you want most? What keeps you up at night in a good way?

How about saving up for a down payment on your first home? Or saving up enough money in order to be able to start your own business and stay afloat until you start making money? It is definitely possible that remembering these reasons could keep you motivated to hit your financial goals, and also not fall off the wagon when the new iPhone comes out or when you go out with your friends on Saturday night.

Having a fancy budget that tells you how much to spend is great and all, but it will not keep you from pulling out your credit card when you know you shouldn’t do it. We need to focus on our pain points in order to stick to our goals, not just on a strategy. Budgets and coupons won’t save us if we are not properly motivated.

And staying motivated is the hardest part of achieving any goal.

 

What Do You Want More Than Spending?

Being able to spend money freely on whatever we want is something we all desire, but unfortunately most of us aren’t able to do that (Or at least not yet, since we all have goals and dreams!). When it comes down to it, we need to focus on priorities and what we want the most.

What do you want more? Being able to leave your job and start your own business, or buying the latest iPhone or other electronic gadget? It might not seem like the little expenses (or even the big expenses) will make that much of a difference, but every time we spend money that is not in line with our priorities, we set ourselves further back from reaching our goals.

For example, during the 2 years leading up to the start of the mini-retirement that I’m currently taking, what I wanted most was to be able to take some time away from work and travel the world. Every time I made a financial decision or reviewed my finances each month, the end goal of being able to take a mini-retirement and travel was at the forefront of my decisions.

For almost 3 years, I lived in a small, un-renovated apartment, cooked most meals at home, spent almost no money on shopping and only took basic vacations. Sacrifices had to be made in order to save 30-40% of my income each month, but I always knew that it would be worth it. And has it been worth it?

Absolutely. These past two weeks we’ve been able to spend time with my mom traveling around France in a way that I never would have if I only had a short vacation.

 

 

I’ve been able to travel to 10+ countries and experience travel in a way that I never could have if I was only taking 1-2 week trips. And taking time away from work has freed up a lot of head space for me to contemplate other projects and think about what I want to do next with my career.

This is what I wanted more than being able to freely spend money as I please.

So whether it’s getting out of debt, buying a home or starting a business, what do you want more than spending? Focus on that, and it’ll keep you motivated when your willpower is feeling weak.

Question: How do you go about making sure that you don’t spend too much money? What are your motivators?

Leave a comment or send me an email!

Also, if you want to dig deeper into how to use your money to get the most out of life, check out my Free 5-Day Money Course!

NYPFGuy