Finance Globe

U.S. financial and economic topics from several finance writers.
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How to Identify Harmful Spending Patterns

How to Identify Harmful Spending Patterns

Spending money is a part of life. No matter how much you save, you will always find yourself parting with money from time to time.

The problem comes into play when you begin to recognize harmful spending patterns. If you don’t immediately address this issue, it could drag you down over time.

While some people identify these patterns right away, others are blind to them. For this reason, they struggle to stay on a positive financial path.

Here are three of the best ways to identify harmful spending patterns:

1. Set a budget. Without a budget you won’t know exactly where your money is going. And when you don’t have this knowledge, it’s easy to make poor decisions that drag you down.

2. Pay attention to every dollar you spend. Even with a budget in place, it doesn’t mean you are protected against harmful spending patterns. In order to truly know what is going on with your money, it’s necessary to track and review your spending. Over time, it becomes easier to see where your money is going and how to make the necessary adjustments.

3. Slow down. If you are the type who spends, spends, and spends some more, it’s time to take a step back. It’s time to slow down, review your situation, and think about the purchases you are making. This is the easiest way to get a better idea of where your money is going. When you slow down and think about every purchase, you won’t find yourself making poor decisions.

Rather than give in to harmful spending patterns, now is the time to put an end to this once and for all. You can make changes for the better if you follow this advice.

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Comments 1

Frank on Thursday, 21 April 2016 16:31

I would argue if you do not know how much you are spending each month on broad categories, you likely have a spending problem. Budgeting is critical for financial success.

I would argue if you do not know how much you are spending each month on broad categories, you likely have a spending problem. Budgeting is critical for financial success.
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Thursday, 12 December 2019

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