If You Don’t Make It, Don’t Spend It!

Do you like to spend more than you make?

Well, you’re not alone by any stretch of the imagination! Spending more money than you earn happens to be a very common practice in the U.S., and the world is quickly following our lead (note: this is not a good thing). Credit card companies have oversimplified the loan process so much that it truly forces debt-laden borrowers to show a lot of self-discipline when it comes to overspending money that’s isn’t even earned yet. This is a super difficult task, but it is only the first, and most critical, step for most people if they ever want to reach financial freedom. Just as there is more than one way to quit smoking cigarettes, there are many, many ways to start spending less than one earns.

Listed below are the three steps that I had to take a long time ago (which, by the way, led me to where I am financially[read: in a very good place]):

Believe it’s possible. This is a very important step, because it is going to carry you through when you (like most people) eventually feel like quitting. Find money-smart people who have gone from the overspending route to living well within their means — then get encouraged by their stories. Why, you ask? Well, whenever you feel like quitting, go over their stories again and again to help you move past this minor speed-bump in life. The motivation gained from other people’s successes are more than likely going to be one of your main keys to succeeding, because one has to at least believe that it is possible, if they’re ever going to make it a reality.

Eliminate temptations. I don’t really have an opinion, one way or the other, about people cutting up their credit cards, because to me it’s kind of like throwing away a pack of cigarettes to a smoker. Just as it’s pretty easy to go buy another pack of cigarettes, it’s almost as simple to get another credit card (you know this, right?). Obviously, the key to success is to have a burning desire to want to curb your spending. Also, while you’re at it, why not skip the mall and going out to eat all of the time — these are two big areas where you’ll waste the most money (what I’m trying to say here: don’t be a mallrat, and try cooking at home for once)?

Find ways to minimize expenses. If you haven’t realized it yet, you will eventually find out that expenses, most of the time, rise to meet people’s income (this is the sad truth). So for this step, start looking for other areas in your life that you could cut back on. A few good examples of this are: 1) shopping around for better car insurance, 2) stop wasting money on unneeded groceries, 3) examine your bills and discover what you can cut back on, and 4) start asking yourself every time you wanted to purchase something, “do I really need this?”

All three of these ideas, put together, will help you save big time (I promise you. They did for me)! By following these easy to grasp (but somewhat difficult to put into practice) steps you’ll be better able to cut down on unnecessary things that are killing your savings account, and this will eventually leave you with more money for the needed things in your life. In my case, I went from spending about 115% of what I made to about 45% in a matter of months (crazy, huh?). If you are anywhere as bad as I was (over 100% or more) make sure that your very first goal is to get back on track financially (and work from there). Start by not getting into any more debt, and then make it your next goal to eliminate your debt by moving your spending to well below 75% of what you earn.

In no time at all, you’ll feel much better about both your life and self, plus it will feel really, really good because you’ll now know what freedom truly feels like (ask anyone [who has at least half a brain] if you don’t believe me)!