One of the biggest obstacles to being able to truly save money is the tendency many have to overspend.

Now, many of our regular Gaucho readers are absolutely the opposite — our crowd is the most frugal of the frugal. (Golf clap.) But, if you find yourself on the other side of the spectrum, here’s how you can change your habits.

Budget

I mention it all the time here on the GauchoBlog, and I know, I know. It sounds so lame. In our materialist society, there’s nothing sexy about a budget. But, I only mention it again and again because it’s absolutely the first step towards saving money. If you don’t set a budget you can work with and stick to, then saving money is tough, if not impossible.

A budget can take many forms. You can track everything you spend your money on, categorize it, and look for ways to save. Tools like Mint.com are exceptional aids in doing this.

Another method people use is to figure out total expenses for the month (bills, rent, etc.), then budget X amount of $ per week for food (say $50?) and X amount of $ per week on spending money (say $50?) – with the rest going into savings. (Your food budget shouldn’t include dining out. Budget for that under entertainment.)

The main thing is to formulate a plan for how you will spend your money, then review it from time to time to find ways to optimize and save more.

Cut Yourself Off from Credit Cards

Credit cards make it easy to spend money. Too easy.

If the item you want to purchase isn’t in your budget, then the credit card payment for it isn’t going to fit into your budget either. The total cost is only going to cost you more in the end.

Using credit cards seems so easy, because it can feel like you’re really getting a great deal. It’s almost like you’re not spending your own money, right? ‘Wow, I got those new shoes and didn’t spend one cent from my checking account!’ That’s great. But very wrong. That’s exactly what credit card companies want you to think. While credit cards are a useful and necessary tool sometimes, we all know the financial troubles they can lead people into.

Don’t ever question the fact that credit card companies are in business to make make. They’re certainly not offering you free money — that’s about the last thing anyone is going to do. Just because you have a credit card with a $2,000, that does NOT mean you have $2,000 to spend. It means you have the ability to borrow $2,000. It means you have the opportunity to obligate yourself to have to pay back $2,000 at a very high interest rate. How good does that sound?

Cut yourself off from using credit cards, except for in emergencies. It’s also okay to take advantage of point rewards programs — if you are able to pay the credit card off every month and avoid getting dinged by interest rate fees.

If you can commit to this, you’ll take a big step towards not overspending.

Know Why You Buy

Sometimes you buy something because you truly need it. Other times you make a purchase because you simply want it.

In our society, many people overspend because shopping and buying things simply makes them feel better. Or cooler. ‘Shoppers High’ is a very real phenomenon, and buying things provides many with the instant gratification and feelings of enhanced self worth they’re not finding elsewhere.

Maybe they’re unhappy with themselves, something in their life, or who knows what. Maybe they’re trying to project an image or keep up with the latest ‘must have’ on their cul-de-sac. Maybe they don’t know how to say ‘NO!’ to the kids or want to project, or feel, a certain level of social-economic status.

It’s all a fleeting mirage.

Instead of shopping as a hobby, buying things as an instant reward for someone else — or self-gratification for yourself — take some time to think about why you or someone else might be compelled to spend money as a way to feel better, more important, or loved. Talk about it, spend time together, and examine ways to get the same feeling from other activities.

Money can’t buy you love, right? It also can’t provide lasting happiness. And, spending money you shouldn’t be spending almost always leads to unhappiness — even if you make yourself or someone else happy for a little while.

Don’t Be Seduced

Advertising. Pleas from the kids. Hints or demands from the spouse. Wanting to ‘belong’.

There’s many levels of messaging that you encounter on a daily basis that tell you, or beg you, to spend and buy. Don’t buy into this temptation. (Pun very much intended.)

If you know your budget, if you know the reasons behind your valid spending habits, and also the things that compel you to spend money unnecessarily, then it becomes much, much easier to avoid the spending temptations we’re constantly bombarded with.

You don’t need a new iPad or the latest Me Too pumps. Those aren’t necessities for survival, are they?

No. On the other hand, that doesn’t mean you can’t buy them, if you have the means to buy them — or the ability to save and budget for them. If you don’t, then reexamine your budget and how you might position yourself to be able to afford such things. Don’t overspend just to obtain them. It leads to a bad spot.

Remember, there will always be plenty of things to spend your money on. So, don’t worry about spending your money.

Concentrate on saving it.