It is okay to splurge every once in a while. After all, life would not be very enjoyable if we could not let ourselves loose every once in a while. We also need some form of reward for all the hard work we have been throwing ourselves into. We have pointed out some time before that splurging is very different from overspending. If you find yourself compulsively shopping more often, buying something not because there is a need but simply for the sake of buying it, than you had better watch out especially if you use a credit card as your main payment option. Excessive overspending can lead to credit debt. And as we always say, credit debt is a nasty trap we do not want to get ourselves pulled into.

For some people, the threat of debt alone cannot curb the appetite for spending too much. Here are a few simple tips that can help you ease out from the clutches of the bad habit of overspending.

Monitor Your Spending Activities

Know how much is in your wallet and your bank account. Keep the receipts from past purchases. You might even want to list down your daily expenses on a notebook or a file on your computer. You do not have to be an accounting whiz to keep track of your spending activities. You just need to observe how you use your money. Find out how much you tend to spend per day on the average, and see if your consumer lifestyle is in sync with your income.

Downsize and Downplay

Where does your money usually go to? How often do you refuel your car? Do you eat out a lot? Do you shop for a new pair of shoes almost every weekend? Sometimes, it is best to downsize on the expenses that we need for daily life, and downplay our expenses for things we can do without most of the time. Shopping for clothes and shoes may be fun but unless you are a trendsetting fashion icon who is photographed everyday for her new looks, you do not need to do it every weekend. Put a budget on your food and grocery expenses as well.

Get a Prepaid Debit Card

Keep your credit card for emergency purchases. As much as possible, use cash instead. If the payment requires the use of a card or you have simply gotten too used to plastic payment, get a prepaid debit card. Unlike credit cards, which tend to accumulate interest and whose expenses are hard to monitor frequently, prepaid debit cards act more like an extension of one’s wallet. You can only spend up to the amount you yourself put into your account. You will be able to keep a closer eye on your expenses. As a plastic payment option, it carries the same perks and privileges of using a credit card; you can shop online with it, make travel reservations remotely, and do other activities that can otherwise not be penetrated by cash payment.