Spending is very relative or subjective to how much money you have. This is why one person could spend $100, and it would be no big deal. But someone else could spend $100 and be on the verge of bankruptcy.
So the question of “how much is too much?” depends on you and your situation. The bottom line is if you have the money and you want to spend a little on yourself within reason, there is nothing wrong with that…if you have the money. But it is absolutely stupid to spend money you don’t have by putting something on a credit card. Here are a few practical tips to prevent overspending…
- Don’t Spend If You Have Debt – If you’ve got student loans, car loans, or credit card debt, now is not the time to be spending. You’ve got to start by cleaning up the mess you’ve made. If you have any kind of debt, learn to delay gratification, make sacrifices, and you’ll win long term.
- If You’re Going To Spend Money, Do It In Proportion To Your Finances – If you make minimum wage, you probably can’t afford Spring Break ski trips to Switzerland. Think of it this way: If you make $1,000 a month and you want to spend $200 on clothes, that’s 20% of your income. But if you make $10,000 a month and you want to spend $200 on clothes, that’s only 2% of your income. Which makes more sense?
- Spending Only Produces A Temporary Feeling – For some, the danger with spending is that it produces a type of euphoric buzz. There is a certain rush of adrenaline and excitement when you buy a really nice outfit or eat at an ultra fancy restaurant. But remember, that is just temporary. Then, you’re left wondering if that spending spree was worth it.
YOUR 2 CENTS: What tips do you have to prevent yourself from spending too much?
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