My Spending Problem - Then and Now
I bought tons of food and clothes. I had an endless entertainment budget. I bought gifts and cards with money I really did not have. I had, several years ago, racked up the credit card debt that took me well over the edge which my parents chose to bail me out of so I did not have to file bankruptcy. Now I have almost no debt. All my bills are paid in full monthly. I have a very strict budget and plan that I maintain with my rep payee.
My Spending Control Strategy
I have a few strategies for controlling spending. First I have a strict budget. Second, I carry no credit cards and for stores that will look up your credit card number don't go in alone and tell your friend not to let you spend anything but cash. I do use credit cards that way but I only buy what I can pay for in one or two months. Third, I have a "rep payee" who handles all of my financial affairs like paying bills etc. Choose someone you trust or someone who does this for a profession. Every week I am given "X" amount of money (whatever's right for you budget that you create with your financial advisor) That money has to pay for everything! It covers gas, groceries, hair cuts, entertainment...everything! If I have an expense that is not a weekly expenditure I keep some money out of each week's amount until I save enough for whatever that is.
Advice
- Find someone you trust to handle your money.
- Give up your credit cards
- Operate on a cash only basis
- The process I chose to try worked for me
- Be honest about where you are spending your money
- Keeping from using the credit cards was hard because many stores will look up your credit charge number for that individual store. That is why I suggest going with someone.
Special notes - internet shopping
Don't do it!
Special notes - dealing with creditors
Use a credit counseling service to help you pay down your debts. Set up payment plans with creditors. If you can come to some agreement of payment over and above the interest rate so you can pay cards down. Get a copy of your credit report and work towards doing what you can to repair it.
Special notes - credit cards
Cut them up! Keep one major credit card for emergencies but try not to use any credit cards for regular purchases.
Final thoughts
Start with a budget and tell yourself you have to stay on budget. It is possible to save for major purchases. Ask for help!
