I recently spoke about how one of the keys to budgeting and saving is the ideology of spending less than you make.
The reason I am bringing it up again is because too many people have only realized that this is important until it is too late. In many cases people have lost much of what they have worked for because they gain a huge amount of debt that they have to pay, however what they earn cannot support the payments necessary to lower their debt.
I explained the easiest way to figuring out whether you are spending more than you make, which is simply looking at your credit card bill and determining what the majority of your purchases are. If you do find that the majority of your purchases are more of a luxury than a necessity, and you are carrying a large balance, then you are more than likely fit in the category of those who spend more than they make.
Now we will get into the information that could help you start spending less than you make.
Once you admit what you are doing, all it takes is creating a budget that works with your lifestyle and how much you earn. You cannot put a complete stop on your spending habits. It will take some time to get to a level where you can enjoy the best of both worlds, saving money, while enjoying a bit of luxury.
Until then, you have to make constant adjustments to your budget until you reach the perfect balance.
My recommendation is that you adjust your budget every 2 – 3 months, which gives you ample time to get adjusted to it, and get into the habit of spending less. When changing your budget, slowly take out items that are not necessary for you to have every month, and change it to something you can do every couple months.
It will take time, however once you settle with the right budget, you will find yourself having just as much fun as you used to have when you spent out of control, but you can save for future goals at the same time.