Rachel Cruze: 5 Ways To Finally Stop Your Overspending

Overspending is a common problem that plagues all ages, demographics, and regions of America. A Deloitte Insights study found that nearly 80% of participants exceeded their budget to treat themselves in the past month — but there are many other reasons people are overspending. Whatever the reason, it all adds up quickly.

Getting your overspending problem under control can be challenging. Rachel Cruze, personal finance expert and co-host on the Ramsey Show, recently gave some tips on combating overspending. In a video on her YouTube channel, she details five ways that you can get your finances on track by reining in your spending .

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Cash Only

If you track your expenses and find there are certain categories where you always go over budget, it’s time to shift your approach. Cruze suggested looking for categories where you overspend and switching to cash. Whether you’re overspending on luxury items, groceries or clothes, only using cash for purchases will help you limit your spending.

When you start your budget each month, take out the amount you’ve set aside for the problematic category in cash. As you spend throughout the month, you’ll see your envelope of cash slowly shrink. This strategy works well because you’ll be able to actually get a sense of how much and how quickly you’re spending, which raises your awareness for the future. It also guarantees you won’t overspend because you can’t spend anymore once your cash is gone.

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Fill Up Your Cart

A major enemy of savings is the impulse buy. A recent You Need A Budget (YNAB) survey asked 2,051 American adults if they spend impulsively, and 1,945 or 94% answered that they did. Cruze admited that she has fallen into making snap decisions while shopping online, but she also has found a way to minimize the damage to her bank account.

She uses a “leave it in the cart” method. Next time you’re browsing items in an online store, go ahead and add whatever you’re thinking about buying to your cart. Leave all the items in your cart for a day or two, then go back and look at what you’ve added. In many cases, the initial thrill of buying specific items will be gone and it’ll be easy to remove those items. It’ll also be easier to review the remaining items and objectively decide if they are things you need or want to spend money on.

Buy To Replace

Another way to be more conscious of whether you actually need something is to use what Cruze called the “revolving door method.” This strategy requires you to get rid of something every time you buy something new. If you’re considering buying a new desk lamp, you have to think about getting rid of something else of equal value.

Whether you sell, donate or throw away an item to get something new, you’ll have to decide what you’re going to get rid of. Thinking about this may be enough to make you realize you don’t need the new item and stop you from making a purchase.

Make It Into a Challenge

If you consider yourself a competitive person, there’s another way to help stop you from overspending. Cruze said making a savings goal at the beginning of the month and challenging yourself to meet that number is enough for some to cut out frivolous spending. In fact, psychologist Dr. Gail Matthews found that people who write down their goals are 42% more likely to see them through. Bringing in a friend to see who can save more over a month is another way to make savings into a game.

Weekly Reviews

The best way to stay one step ahead of your finances is to update yourself frequently. Cruze suggested scheduling weekly checkins to see your progress or where you need to make improvements. However, instead of making it a draining event you dread, spice it up and make it fun. Find a enjoyable place that you look forward to going to and sit back with a cup of coffee to gauge your spending briefly.

This article originally appeared on GOBankingRates.com : Rachel Cruze: 5 Ways To Finally Stop Your Overspending