How to stop spending too much money!
In defense of those who spend more than they make - don't just stop cold turkey, just as in dieting, you try and plateau, then decrease.
Believe it or not, spending money is addicting - I think the addiction is quite simple - you spend lots, because it makes you feel important and you receive great things in return (ie. good meals, nice clothes, nice cars etc.) So remember that you can't approach this just like a bad habit - IT IS GOING TO BE HARD TO BREAK (and Yes, you will fail a few times on your way to success - but don't give up). Most North American's don't have a net worth (worth speaking about) - we need to change this!
Anyway - here are the main steps to quitting over-spending:
1) Stop the growth of over-spending
If you are spending more and more each month (which can easily be tracked if you watch your debt rise each month) - target this first, stop the growth in over-spending.
2) After you have done this for 1 month or two, start to reduce how much you spend each month (but don't get so zealous that you exhaust your restraint and go on an expensive spending-binge).
3) Eventually you will get down to living within your means, but don't stop there - KEEP GOING. Eventually you will have some savings and will be able to sleep at night.
Now, since this is such a sensitive topic - I want to tell you a story about a man who was down and out and made it out of debt. This is a true story from the book "The Richest Man in Babylon". There was a man who was extremely in debt! He owed money to everyone - no one was willing to extend him any more credit. He went to see a local money lender who gave him a very simple formula for success:
In defense of those who spend more than they make - don't just stop cold turkey, just as in dieting, you try and plateau, then decrease.
Believe it or not, spending money is addicting - I think the addiction is quite simple - you spend lots, because it makes you feel important and you receive great things in return (ie. good meals, nice clothes, nice cars etc.) So remember that you can't approach this just like a bad habit - IT IS GOING TO BE HARD TO BREAK (and Yes, you will fail a few times on your way to success - but don't give up). Most North American's don't have a net worth (worth speaking about) - we need to change this!
Anyway - here are the main steps to quitting over-spending:
1) Stop the growth of over-spending
If you are spending more and more each month (which can easily be tracked if you watch your debt rise each month) - target this first, stop the growth in over-spending.
2) After you have done this for 1 month or two, start to reduce how much you spend each month (but don't get so zealous that you exhaust your restraint and go on an expensive spending-binge).
3) Eventually you will get down to living within your means, but don't stop there - KEEP GOING. Eventually you will have some savings and will be able to sleep at night.
Now, since this is such a sensitive topic - I want to tell you a story about a man who was down and out and made it out of debt. This is a true story from the book "The Richest Man in Babylon". There was a man who was extremely in debt! He owed money to everyone - no one was willing to extend him any more credit. He went to see a local money lender who gave him a very simple formula for success:
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