Shopping without thinking
Impulse spending can wreak havoc on both your budget and your emotions – those “good vibes” from your purchase very quickly turn to feelings of guilt and shame.
The solution: Figure out what triggers you using the TEMPO acronym – T: time; E: environment; M: mood; P: place; O: occasion – and find alternatives to spending money. In the meantime, consider leaving your credit and debit cards at home when you’re out and give yourself a guilt-free allowance. Here are 5 ways to trick yourself into spending less.
Throwing big birthday parties
The solution: Have simpler parties, implement a “no gifts” policy or set a limit on the amount of money spent on presents (the latter is a great way to teach your children about budgeting early on).
Buying gifts for every special occasion and holiday
You may want to have an enjoyable Valentine’s Day, but your monthly credit card statement can take the shine out of any special occasion.
The solution: Find out what occasions are most important to you and your family, and scope out a budget that works. Once you know your budget, divide that amount by the number of paydays you have and transfer that amount every payday to a savings account. Here are some cheap and cheerful Valentine’s Day gift ideas.