Financial advisers share tips on how to avoid money traps and uncontrolled spending

All of us want to start off the month with the best intentions to save money. We would like to purchase only what we need, to steer clear of the sales display we see in malls and online, and to try to watch on our spending.

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Avoid overspending

However, despite your best efforts, achieving your savings goal just seems to happen. You’ve spent more money than you wanted to before you know it. Don’t beat yourself up, it happens to many Australians like us, so before you get your next credit card statement and wonder how to stop spending money, learn the tips from financial advisers on how to avoid money traps and uncontrolled spending.

There are a number of reasons why you overspend. It could be because you aren’t aware of your true spending habits. Maybe we are unable to properly determine our income, expenses, debt payments and spending. Then, in the end, our bank account balance dips lower than what we expect.

Tracking your spending is one of the most effective ways to control your spending. Tracking even your littlest purchases is helpful because they can add up, and by the time the end of the month rolls around, you can be facing high credit card payables and severe buyer’s remorse.

Tracking your expenses is the key to successful budgeting because it keeps you accountable for every dollar you’re spending. Once you’re aware of where your money is going, you’ll be in a better position to make smarter spending choices and to identify areas you can cut back in.

Most of us here in Perth only track their bigger expenses. However, it’s just as important to pay attention to those small, daily purchases. A single coffee you order form a coffee shop, a few litters of gasoline you purchase from a gas station, or a number of items you grab from a grocery can add up more than you think they would, and they can affect our budget in big ways.

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