Are you in the habit of spending money wastefully? Many people are and of course this has the effect of draining your bank balance if you don’t maintain a regular income which exceeds your outgoings. Even if you have a healthy income, you can find your spending habits are so engrained, that should lose your job, your habits will continue.
There is the train of thought that being too careful with your money is a scarcity mindset. This scarcity mindset manifests lack, no matter what else you do. However, not valuing or respecting your money (or yourself) has a similar effect. You may be doing this because you don’t value yourself, or you don’t believe you’re worthy of having the money.
Lottery winners are known to lose their money within a year or two of their win. But why is this? If you don’t have the mindset to have money in abundance, you will find ways to fritter it away and return to your “comfort zone”.
The comfort zone is your personal financial thermostat. It’s not the income which you want, but rather that which you’re accustomed to. Should you earn slightly more one month, you’ll spend accordingly to return your bank balance back to “your level”.
Habit Of Spending Money Wastefully
So if you find you have the habit of spending money wastefully, what should you do? If you have a problem with spending, you may want to look at your income and outgoings. Too much over spending will likely result in you falling behind, going into debt and having to pay interest on that debt. The cycle of debt and more debt can affect your mental health. This can be fatal ultimately so is to be avoided at all costs!
Look at your bank statements and take an inventory of your weekly spendings. Take a note pad and pen and write down everything you spend money on for a full week. When you become more conscious of your spending, you are more likely to change it. Perhaps your spending is the result of a poor self image, low self esteem or depression. Looking for a mental health solution in consumerism can be a big problem. To combat it you can get help from a mental health professional. Talk to your doctor if you have a problem which is health related.
If you’re already in debt there are many debt advice services which you can find online. StepChange is one here in the UK which I found to be very helpful in combating debt.
Become More Conscious Of Spendings
Look through your bank statements over the last few months and take a note of your spendings. Can you cancel any subscription payments? You can switch credit card providers to reduce your interest levels if you have a lot of credit card debt. Or, contact your provider and get them to reduce your interest levels. This can be done if you are experiencing financial difficulties. Talk to a debt charity like Step Change for assistance.
What need does your spending meet and how can you change it? By shedding light on your spendings you can become more aware of the problem.
Learn About Your Money Mindset
What is your mindset around money? Do you earn enough to spend wastefully? Spending wastefully can be related to an issue of lack of respect for money and therefore yourself. How do you view yourself? Your identity is linked to money. How much you make and how much and how you spend it.
Still, there’s nothing wrong with spending freely if you have the money to do so. The problem only arises if it gets out of hand and you’re spending more than you’re earning.
