Are You An Over Spender?

Is spending money easier than saving money? Do you find that you are spending more than you are making? You’re not the only one. But if you’re constantly wondering where your money is going it may be time for a new financial strategy for you to meet your financial goals. Overspending can also lead to other things. If not addressed, this kind of spending can lead to things like debt, financial stress and unpaid bills. And we understand that you can’t always plan what you do with your money, but that’s what GoDay is here for. For the times emergency expenses come up, you’ve gone over budget or you need to make it until your next pay cheque, get more information about how GoDay is helping people get back on track.

Budget, budget, budget

Here at GoDay we’re big on budgeting. And it can be tricky trying to keep track of where your money needs to go next. You have heard us talk about budgeting before – whether you’re a first time budgeter, going digital with your budget, what to do when you’ve gone over budget and getting and staying back on track to name a few of our budgeting tips. So what does budgeting mean as someone who has been overspending? It means that you are not sticking to a budget. So how do you get back on track financially and overcome these overspending habits? It’s all about staying on track. When your expenses start exceeding more of your income you know that it’s time to re-evaluate your finances.

Not a budgeter? That’s okay. Like other money matters, one of the most common questions when it comes to starting a budget is “how do I start”? And there is no right answer. It is about what works for you. But once you have money starting to come in and expenses that need to be paid, it’s time to start watching where your money is going by having some sort of tracking system or budget in place. It’s one thing to put all this effort into budgeting, but it’s another to actually follow through on your financial goals. By sticking to the budget you’ve created, you’re working on creating financial stability focused around you and your lifestyle.

So what happens when you’ve blown your budget? This means you may need to take a step back and focus on your spending habits to know how you got off track. Being aware and able to paint the picture of what went wrong are the keys to understanding the state of your current financial situation and setting an action plan as to how you’re going to rectify or make sure you are financially in a good spot to get back on track. Which brings us to our next point – do you know where your money is going?

Do you know where your money is going?

As we mentioned, it is not just about knowing how much you regularly have coming in, but also how much money you have coming out. This is not only a starting point for your expenses but also your savings. Off the top of your head, do you know your total monthly expenses? That’s why creating a list of each expense can help layout all your costs and make it easy to see where your money is going. If you know you’re not staying on track means you have an idea of your spending habits to know how you have managed to overspend in the first place. There shouldn’t be any extra expenditures when you’re already in a financial bind, and by understanding how you got yourself into this financial situation is what also needs to be addressed. Once you have your costs and spending organized you will feel more comfortable by being able to see the big picture of where your money is going. Did you miss a bill payment and the interest is adding up? Is it a big month in terms of expenses? Has there been an emergency where financial assistance is required? No matter what the situation, understanding why you are in the financial spot you are in is what will help you look at your financials in a different way and help you prepare for the future accordingly. When you’re in this kind of financial position, this is where we can step in to help, because that’s what our payday loans are for – making sure you stay afloat until your next pay cheque and get you back on track.

Signs you are an over spender

There are plenty of tell tale signs when it comes to overspending such as making late payments, impulse purchases, not checking in on how much you’re spending or only making minimum payments on things like your credit card bill. When paying the minimum, you’re most likely paying interest from bill to bill and not actually tackling your debt, but accumulating more debt. It can be difficult to recognize you are overspending when you feel like you’re getting by from pay cheque to pay cheque this can also be one of the signs. Would you be surprised if we told you that more people than you think are constantly overspending and falling behind financially? Canadians are burdened with historically high levels of household debt, according to Statistics Canada. Simply put, too many people are spending more than they earn. And it is in times like this that GoDay is here to help. Our payday loans are not intended to provide a long-term financial solution – they are intended to solve urgent but temporary cash-flow needs, especially in those times where we can’t keep up financially or when you’re making the minimum payments and falling financially behind. Getting out of the habit of making minimum payments is one of the best ways you will start to see your debt disappear and get your finances better organized.

Making better spending decisions

No matter what you are spending money on, there is always a reason for the purchase right? And it’s not like anyone enjoys paying bills when you can be spending your money on something else. So how do you make better spending decisions? It’s about becoming more meaningful in the way you spend your money and knowing your means. Which is why having a budget to see where your money is going is so important. We all have them, those spending habits that we wish we could break, especially when it comes to tackling debt. But when it comes to debt management, it is about changing your thinking when it comes to what you’re spending. We often also try to justify our spending. Are you purchasing items impulsively? Is this truly a need, or a want? How will this item add value to your life? Asking yourself these types of questions forces you to be more mindful about what you are spending your money on.

We also always talk about doing your research before spending instead of buying the first thing you see. Because retailers want you to be spending money! Because when it comes to our money we all like to save where we can. Shopping around isn’t about cutting your spending on everything, but picking and choosing what you spend and save your money on. Instead of buying something name brand, why not try the generic version. Whether it is shopping for groceries or bigger item that you may need for your home like furniture or appliances, timing those big purchases and looking at different places for the best price may end up saving you money. It is making better spending decisions where you can that you will start to see things add up and shopping around for the best price can really make a difference on your wallet.

It’s okay to have bad spending habits. You are not the only one. We’ve all had those memberships or subscriptions that have gone unused, but it is recognizing these spending habits and taking the next steps on how to make better spending decisions that will have the most impact on your bank account. These habits can be a variety of things depending on your lifestyle and interests, but what bad spending habits can often lead to are bad savings habits. We know that there are many reasons why we spend money and a lot of the time it makes us feel good too. But being smarter when it comes to your spending can have a big impact when it comes to spending money on the things that you really want. Like that trip you definitely deserve.

What is in your savings account?

There are those times we cannot always plan out financially what will happen and we end up overspending. But your savings account is another key indicator to know whether or not you are spending too much.  Do you have to dip into your savings to help pay your bills? Have you stopped putting money away into your savings accounts? Learning to save is one financial skill that should to become a habit but can be much easier said than done. According to CIBC’s 2017 survey results, 85 per cent of Canadian’s agree that they should be saving more money than what they currently are. In fact, 79 per cent of respondents aged 35 to 54 said they worry about not having enough funds to retire when they want to. Taking a step back and having a look at what you’re spending is needed because you can’t start saving when you don’t know what you’re spending money on and looking at where there is an opportunity to save. You can also build in savings to your budget. You will be surprised at how quickly a little bit each pay cheque can make a difference in your savings, even when you’re feeling like you’re down to every penny.

Do you need it, or want it?

You need to pay bills. You want the newest gadget. As we mentioned above about how we’re always trying to justify our spending, knowing the difference between things we need to spend our money on versus what we want to spend our money on can make a difference when it comes to overspending. We’ve become accustomed to some of these things that we think we “need” them because we’ve had them for so long when really it’s more of a “want” and would be just fine without them. Living in a society where the latest gadget is a “must have” and brands create good marketing to make us feel we “need” these things is one of the ways people are constantly overspending and finding themselves in debt. But just because you don’t need something doesn’t mean you can’t buy it — it means saving and avoiding overspending so you can have it. It is recognizing these purchases which are commonly seen as treating yourself and are impulse spends that cause you to overspend and break your budget. Everyone splurges now and again, but it shouldn’t break the bank.

We all have them, those spending habits that we wish we could break, especially when it comes to tackling debt. But when it comes to debt management, it is about changing your thinking when it comes to what you’re spending. If you are you looking to break those spending habits and get out of debt or need help staying afloat until your next paycheck, get your payday loan onlineLearn more about us, and how we are helping people get back on track and to think about making better spending decisions.

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