Controlling Your Urge to Spend

The health of the economy is always a high priority for politicians and and other government officials because when people have extra money to spend, they are generally forgiving of other bad governmental policies and decisions.

The economic climate of any particular period usually dictates how much we spend or how little we have to spend. It is generally not an issue of wealth or poverty or anything in between, it usually has to do with the amount of money that is circulating in the economy.

Some of us get caught up in what we hear on the news, read in newspapers, magazines, and on the internet. Spending is the name of the game. If we don't spend, the economy slows down and people may be put out of work.

The problem is, a lot of us get caught up in the spending craze and we let our urges to spend get the best of us and we over extend ourselves. The reason cash and credit cards are called liquid assets is because they flow like water. And when the water is gone, it's gone.

What really matters, though, is how you let your urge to spend take control of your better judgment. And it does not matter if a person is rich or poor, it happens to all of us. It is spending, or the abuse of spending, that is the root of most of our financial problems. Once you get caught up in a wave of spending, it is often very difficult to stop.

Some things to do to break your urge to spend are listed below. You have to take control of your urges and take reasonable action..

• Do not purchase items on a whim.
• Comparison shop and buy only the items you need.
• Create a budget. Add up the total dollar amount of the items you want to purchase and see if the total fits into your budget, and if it doesn't, just buy the things that you absolutely need..
• Compare all alternatives you have for not buying certain products.
• Stay out of stores, malls, and other places that entice you to spend.
• Refuse to be swayed by fancy advertising ploys. Just because something is on sale does not mean that you just absolutely have to have it.
• The main point is that you plan your purchases and stick with the plan.

The key to stopping excessive spending habits is to gain control of your urges and your wants, then you will see your financial well being start to improve.

Finance Topic of the Month: Federal Deposit Insurance Corporation (FDIC)