In defense of those who spend more than they make - YOU ARE NOT ALONE! Almost everyone does it BUT don’t just stop cold turkey, just as in dieting, you try and plateau, then decrease. I have included a diagram for explination.
How to diet effectively
Belive it or not, spending money is addicting – I think the addiction is quite simple – you spend lots, because it makes you feel important and you receive great things in return (ie. good meals, nice clothes, nice cars etc.) So remember that you can’t approach this just like a bad habit – IT IS GOING TO BE HARD TO BREAK (and Yes, you will fail a few times on your way to success – but don’t give up). Most North American’s don’t have a net worth (worth speaking about) – we need to change this!
Anyway – here are the main steps to quitting over-spending:
1) Stop the growth of over-spending
If you are spending more and more each month (which can easily be tracked if you watch your debt rise each month) – target this 1st, stop the growth in over-spending.
2) After you have done this for 1 month or two, start to reduce how much you spend each month (but don’t get so zealous that you exhaust your restraint and go on an expensive spending-binge).
3) Eventually you will get down to living within your means, but don’t stop there – KEEP GOING. Eventually you will have some savings and will be able to sleep at night. Just do your best!
Related article: Home Equity Loans Calgary
Trevor Hickey, B.A.
Mortgage Associate
Concord Mortgage Group Ltd.
#107 – 1905 Centre Street NW
Calgary, Alberta
T2E 2S7
Bus: (403) 290-1990
Cell: (403) 860-8738
Fax: 1-888-587-1426
Email: trevor@concordmortgage.ca
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