Morning Blend on Mater Dei Radio: “How To Keep From Overspending”
Overspending is something that plagues most Americans these days. You’re not alone if you find yourself overspending and sometimes it is even a bit out of our control (i.e. inflation). The best thing to do if you find yourself in this position is to figure out why you are overspending.
Once you’ve determined the why, start to work on finding ways to cut back. Spending on small items adds up quickly. Similarly, cutting out those small items, can cut your overspending significantly and therefore create more balanced spending.
Don’t know if you are overspending? It’s time to test yourself! Take your age, multiply that by your household income, multiple that by 10% and you get your expected net worth.
Example: You are 55 years old and your total household income is $100,000. Your total net worth should be around $550,000.
Of course, no equation is perfect and there may be reasons your net worth is lower or higher, but as a general rule of thumb, this is good way to determine overspending.
If you find yourself close to your net worth goals but just not quite there, there are a few things to consider. Similar to the envelope system, you can open a Mad Money account. The goal of this account is you are allocating funds for a specific expense and once its gone, its gone and you can’t add more until the following month. Another option is utilizing a wish list for items you want or letting items sit in your online shopping cart to make sure it’s something you want to purchase! Overall, reducing temptation will serve you in the long run.
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Mater Dei Radio is a Catholic broadcasting apostolate dedicated bringing souls to Jesus through the Blessed Virgin Mary. We hope your faith will be inspired and deepened through our 24-hour radio broadcast, original shows and podcasts, community calendar, social media, and more!
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