To avoid spending temptations is difficult. Understanding your personal financial habits is key to becoming financially healthy. Despite your good intentions, it is easy to be persuaded to overspend for different reasons.

In order to improve your individual spending habits you need to identify and understand them.   Have a look at these 3 triggers to see if you identify with them. You may find that you have more than one trigger:

Instant Gratification

The trigger:

• You see something you like and you HAVE to own it straight away
• With easy access to credit you no longer need to save up for a big item, you can just swipe your card and it’s yours

The solution:

• Only use your credit card in emergencies
• If you see an item that you really want, sleep on it and consider how much the item will cost you with the compound interest and then decide if it’s worth it
• If it means that this purchase will increase your monthly expenses to exceed your monthly income then you will probably default on your repayments and get backlisted – hardly worth the nice pair of shoes

Keeping up with the Jones’

The trigger:

• You might find yourself aspiring to a higher lifestyle like that of your friends or relatives which you cannot afford
• So in an effort to keep up you begin to overspend on non-essential items using credit and clothing accounts, living above your means

The solution:

• Make sure you live within your means
• Do not buy non-essential items on credit, rather save for them
• Constantly remind yourself of your financial goals which you are working towards

Spending to Feel Good

The trigger:

• Spending money on yourself to feel better

The solution:

• There is absolutely nothing wrong with this, as long as you don’t go overboard!
• Set aside money in your budget every month to reward yourself
• Do not use credit for these items

Sources: About.com