How to successfully manage your spending habits

Although we all want to achieve success in managing our personal finance, we often fail to identify the single factor that influences it hugely, our spending habits. We struggle with managing this powerful habit more than anything else. Our spending habits have an impact on:
 Our happiness
 Our funding of long-term goals like child education and retirement
 The level of our emergency savings we plan to have
 The amount of insurance we should have
Evaluating our own spending habits and checking if it is manageable is difficult since we do not discuss it with friends and family, as we expect backlash and judgement from others. You may spend on credit cards, borrow from others or take a personal loan to splurge on luxury items.
If you are underspending
At one end of the spending, band is extreme stinginess or penny-pinching. A hoarding disorder often results in emotional attachment along with a defined reluctance to part ways with money and possessions, although this is generally connected with collecting things. Financial hoarding is often caused by the intense emotions about not having enough money and accumulation relieves this overwhelming anxiety. Such people will refuse to spend on basic necessities like medicines or food items. Therapy can help to overcome this condition and lead a normal life.
If you are overspending
Many people have a healthy attitude towards finance but need to curb current spending in order to achieve future goals. These changes are quite manageable but those with money disorders may find it difficult to cope with the situation. Money- related disorders are often driven by emotions and pose a hindrance to emotional wellness. Overspending may need certain corrective measures as shopping has to be replaced with various other actions that can gratify the mind.

Strategic steps like keeping credit cards away, opting for balance transfer to reduce card outstanding or gradually reducing shopping visits to the mall can be a few options. Avoid using money as a primary source of happiness and stop treating it as a stress-relieving aid. When money is used as a means to manage the future and also as a means of enjoyment, spending habits can be successfully curbed.

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