We all know that feeling: You get home from a long day of work, and the first thing you want to do is relax by shopping for some new clothes. But before you know it, your bank account has taken a hit, and you’re left with nothing but buyer’s remorse. How can you avoid overspending and keep track of your spending? Here are six few tips:
1. Put a Spend Limit on Your Bank Cards
One way to keep tabs on your spending is to limit how much you can spend with your bank cards. This will help you stay within your budget and not overspend. You can set a limit for yourself by logging into your online banking account and setting up a spending limit for each bank card.
Alternatively, you can call your bank and ask them to set a spending limit for you. This is a good idea if you are likely to overspend when shopping. Once you set a spending limit, keep track of your spending so that you do not exceed the limit. If you find that you are regularly exceeding your spending limit, then it may be time to reevaluate your budget.
2. Track Your Spending
A wise person once said patience and time are the two most powerful warriors. So, monitoring your daily expenditures is key if you’re looking to keep tabs on your spending and prevent going on a shopping spree. By tracking your spending, you’ll be able to see where your money goes and get insights on ways to cut back.
For example, you may realize that you spend too much on takeout or have a penchant for overspending when you’re bored. Whatever the case, identifying your spending triggers is an important step in curbing excessive spending. To get started, simply download a budgeting app or create a spreadsheet to document your everyday expenses. Then, set a weekly or monthly budget for yourself and make it a point to stick to it.
3. Set Up Alerts
You can set up an alert for when you exceed your budgeted amount for the month or when you make a purchase over a certain dollar amount. You can also set up alerts for items you tend to overspend on. For example, if you know you have a weakness for shoes, you can set up a sign that will notify you every time you add a pair of shoes to your shopping cart.
You can easily set text alerts through an efficient online banking system. Such banks with online banking features allow activating or deactivating text alerts on the go. You can even track your spending by viewing your recent account activity online. The best thing is that you can do all these from the comfort of your home or anywhere worldwide.
4. Pay With Cash
Swiping plastic is simply too easy and impersonal, making it too easy to overspend. When you pay with cash, on the other hand, you are much more likely to be mindful of your spending. Seeing the money leave your hands can help rein in impulse purchases, and it’s also a good way to track how much you’re spending. If you’re trying to stick to a budget, paying with cash is the way.
5. Use a Rewards Credit Card
A rewards credit card can help you keep tabs on your spending and make the most of your hard-earned money. You can earn points or cash back on your everyday purchases using a rewards credit card. This can help you save money on big-ticket items, travel, and more. Additionally, a rewards credit card can help you keep track of your spending and spot any potential problems early on. For example, if you notice that you’re spending more than you’d like on dining out, you can adjust your budget accordingly.
A rewards credit card can also help you make the most of your credit limit by allowing you to transfer points to different loyalty programs. This can help you maximize your rewards and get the most value for your money.
6. Shop With a Friend
Shopping with a friend can help you stay on budget and make better choices. They can help carry items when you shop in-store or keep track of what you are buying online. A friend will also be honest with you about whether an item is worth the price or if it is something you can live without. They can also help prevent you from overspending by gently reminding you of your budget when you start to add items to your cart.
There are several ways to keep tabs on your spending and avoid a shopping spree. By setting up alerts, paying with cash, using a rewards credit card, or shopping with a friend, you can stay within your budget and avoid buyer’s remorse. So, next time you’re feeling the urge to splurge, remember these tips to help keep your spending in check.