If you recognize your own habits on this list, we recommend taking the time to evaluate your financial situation and call us for a free consultation.
Taking care of your financial health is essential. Recognizing that living beyond your means is a sign of overspending could save you from years of stress, uncertainty and unhappiness if you wait too long to start paying down your debts. In our modern day culture of consumerism, it has become far too easy to buy that pair of jeans you don’t really need or fill the shopping cart with food you won’t eat and not even give it a second thought…that is, until your credit bill comes in. If your income doesn’t cover you until the end of the month and you’re wondering how you’re going to last until you get paid, these could be serious red flags that you could be overspending. At D. & A. Macleod Company, we see this problem often and offer debt help to Ottawa residents and surrounding cities in Eastern Ontario. Our goal is to help our clients manage and save, not waste, their hard-earned money. Here are some of the most obvious signs of overspending. If you recognize your own habits on this list, we recommend taking the time to evaluate your financial situation and call us for a free consultation. 1. Credit card debt. If not managed properly credit cards can become extremely dangerous to your financial well-being. You know you don’t need that new designer bag or cell phone, but you tell yourself it’s a bargain and your credit card is burning a hole in your pocket. Before making the purchase, stop and think about how you’ll pay when the bill comes. Can you afford to pay off your bill at the end of the month? How much better will you feel if you haven’t bought something you really don’t need and can’t afford? 2. Head in the sand. Ignoring your bills and not knowing where your money is going can cause severe financial stress. If you don’t monitor your income and outgoings (and attempt to balance the two) you’re likely to let your spending spiral out of control. A simple monthly budget and weekly review can help you control your spending behavior and recognize bad habits. 3. Using your savings. If you’re using your savings or emergency fund to pay for day-to-day expenses you have a spending problem. Ideally, you should keep 3-6 months’ worth of income for unexpected emergencies. Using this money for other things could cause you serious issues if something major occurs. 4. Boredom. If you go shopping because you’ve got nothing better to do or you’re a compulsive online shopper, you probably need to rein in your spending. Next time you find wandering through the mall for no reason do something productive – maybe even a side-hustle to make some extra spending money. Another tip is to delete shopping apps from your phone – they give retailer a direct line to tempting you in to spending more money! 5. Not paying bills. Instead of paying off your credit card or other bills you either ignore them or juggle the payments. This is a sign of things getting out of control and talking to us about personal debt solutions that are available could help you get things back on track before you have to face serious consequences. 6. Buying what you don’t need. Don’t fall for the marketing tricks in stores and online. Why do you need 3 pizzas when 1 is enough? That 50% discount on a handbag is great, but is the bag going to improve your life? Just because something’s on sale doesn’t mean you have to have it. Avoid the stores or shopping online on Black Friday – this is just even more hype to get you to part with your money. Impulse buying can be addictive and not taking the proper care in managing your money can lead to serious debt problems. Mindfully managing your money, not overspending and being in control gives you financial freedom.