If you are the type of person that carries at least 5 types of credit cards in their wallet, I suggest that it would be better if you just carry one or two so that you will not be tempted to use all of them. If you cannot avoid the shops, then just leave your non-emergency credit cards at home. 

 

7. Keep your receipts

 

If you are still not aware that you are on the verge of overspending, keep your receipts for a week and then total all the expenses that you did for that week. This would really be an effective wake-up call, more so even than coffee for your body!

 

8. Carry cash

 

Instead of making the habit of paying through credit cards, develop a habit to depend on paying transactions by cash so that you could really be able to keep track of your expenses. Cash is easier to count rather than card transactions.  It will also make you more resistant to impulsive purchases.

 

Do this exercise:  Sit down and try to remember the major purchases you’ve made in the last year or more (or go through your old receipts to jog your memory).  How many of those purchases would you consider to be a “bad” purchase?  In other words, was it something that you haven’t really used, worn, or wasn’t as important as you thought at the time?

 

Of those major purchases (items that cost maybe $100 or more that weren’t necessities), how many of those purchases would you repeat if you knew then what you know now?

 

You’ll probably find that at least half of your purchases were “bad”.  So use that as a guideline to help you avoid making similar bad purchases in the future, perhaps by postponing instant gratification by “sleeping on the decision”.  More often than not, you’ll wake up in less of a buying mood than you were the day before, and you won’t miss the item you would have purchased in the slightest.

 

9. Recognize the signs that you are overspending

 

Once you realize that you are having a hard time paying your monthly credit card statement, that is already a sign that you are losing your control over the matter. Be aware of these things because it is a warning to be heeded.

 

10. Know your limitations

 

Being aware of yourself could actually save you a lot of money because you already know the things that you need and the things that you don’t. Knowing your limitations could help you stop the unnecessary spending through the use of credit cards.

 

Credit cards are convenient to use, and absolutely necessary sometimes, but if one abuses the usage of their convenience, overspending results and it can really be a big burden for a person.

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