One of the most experienced challenges with personal finances is excessive spending. To attain financial freedom, there are certain principles to consciously abide by. A journey towards financial freedom requires being consistent with managing your finances effectively. This article focuses on five basic steps you can take to carefully cut down on excessive spending.

Avoid impulse spending
Effective money management is finding the balance between your earning, spending, savings, and investment routine. Impulse spending is simply an unplanned purchase that is not in your budget. It can be as minute as re-subscribing your monthly data plan to buying a dress. When you consciously stick to your budget, you’ll most likely have more money to save and invest in the long run.

Stick to your budget
The essence of having a budget is to spend on the most prioritized needs per time. When you spend outside of your budget, you are gradually robbing yourself of other necessities. To stick to your budget is to simply tell your money where to go at any given time.

Stop using your credit card
A credit card allows you to buy things you did not prepare the liquid cash for at the moment, which results in spending outside of your budget. Having your credit card with you often can lead to overspending. It can also lead to deduction of credit card charges which when added in the long run would lead to another major expense.

Automate periodic savings
Periodic savings on any online saving or investment platform like www.overwood.ng will help you to be consistent with your monthly savings and investments. You can as well automate other necessary payments, basically, payments that do not reoccur often.

Avoid money pits
Money pit is simply a major leakage on your financial resources and this is a result of impulsive spending. One of the most important steps to avoid a money pit is to carefully assess your financial plan and set aside a certain amount for emergencies.
To cut down on excessive spending, you will have to consciously go about it the right way. With these steps, you can consciously cut down on excessive spending and avoid the spending temptation.

Stop using credit cards ? What should we now use? Cash? In my opinion, credit cards are convenient. In a way, they even help you stay in control of your spendings since the idea of paying off all your expenses at the end of the month can be likened to the idea of you paying yourself salary (this time, just the amount you want to spend in the month). For me, I consider myself as rich as whatevers I have in my credit card (I specifically requested for the minimal amount). I use the card for all my online transactions. It's safe and convenient.