You probably have the best intentions when it comes to saving money. With all the temptations out there, it can be hard to keep your finances in line. Splurging here and there every once in awhile is okay – but the habit of overspending can become a much bigger problem if you don’t keep things in check. Check out these five steps to stop overspending, before it gets out of hand.

Understand Your Triggers

Overspending is often caused by impulse shopping. When you’re out shopping, do the small items in the checkout aisle get you? Do you always pick something up while waiting at the checkout line, even though you don’t actually need anything? Ask yourself why. It’s important to understand what your triggers are. Do you spend because it gives you a thrill or because you’re bored and have nothing else to do while waiting in line? Understanding exactly why you overspend will help you get to the root of the problem and find lasting and realistic solutions.

Track Your Budget

The most important thing you can do to stop overspending is to actually have a budget and track your expenses. It’s not enough to just have a rough idea of how much you’re spending. You need to know exactly where your money is going and what you’re spending on everything. Start logging expenses in the budget whenever you buy something or pay a bill. At the end of the month, sit down and analyze your spending habits. You might be surprised at what you find out, and even more surprised when you realize you can cut a lot out without feeling much of a sacrifice.

Learn to Say No

Overspending has a lot to do with social pressures. Sometimes it’s just really hard to say no. You might be trying to keep up with the Joneses, or maybe your friends are just constantly asking you to go out. Think about your priorities before you agree to anything. Is the decision going to hurt your finances and should you really be making that commitment? Learning to say no is a big part of being financially responsible. The sooner you learn what you can and can’t afford, the closer you will be to financial independence.

Live Within Your Means

Here’s a simple thing you can do to improve your finances: don’t spend more than you have. Getting into the habit of spending every paycheck is dangerous even if you never get into debt, because emergencies do happen and you will need savings to fall back on. It’s even worse if you overspend and fall into debt to make purchases. Once you owe money, you not only have to pay for what you buy, but you also need to pay interest on what you owe – effectively making your paycheck smaller for the foreseeable future. Learn to live within your means. It’s certainly not easy at the beginning, but scaling back little by little will set you up for long term success.

Allow Small Rewards

Personal finance is serious business, and most of the time it may not seem very fun. That doesn’t mean you can’t enjoy yourself in the process though. Don’t forget to budget for a “YOU” fund. Allow yourself small rewards from your paycheck. Just make sure the “YOU” fund doesn’t cause you to go over your budget.

Article Source: Connie Mei for moneyning.com