Ease Financial Stress: 3 Simple Tips to Conquer the Fear of Over-Spending

Ease Financial Stress: 3 Simple Tips to Conquer the Fear of Over-Spending

By Nick Baker – Advisor IMG Financial Group

Saving and investing money can often feel restrictive. In your journey to plan for emergency funds, retirement, medium- and long-term goals, it is normal to end up with a heightened sense of fear of spending money or spending money poorly. This is not a healthy long-term approach to your personal finances. So long as you cover your bases and save towards your goals/retirement at appropriate levels, occasionally spending money on yourself and your family makes a great deal of sense. Ultimately, this process requires a shift in mindset to align your spending with your values. If you can reduce the spending that doesn’t match your values, you make room for spending on the things that do matter. At the end of the day, money is a tool – neither inherently “good” or “bad” and certainly nothing to approach with a sense of restriction or fear. You should absolutely use your finances to enjoy your life in a way that makes sense personally.

Here are 3 steps you should consider as you conquer the fear of overspending:

1.      Determine Your Values

Instead of thinking about all the items you can or can’t spend money on and getting flustered over the cost of those items, ease your financial stress by truly reviewing your finances. Make a complete financial plan that covers all of the factors: how much you make, how much you save, how much you spend, how you invest, and where your money goes. These are your financial guiderails. Once established, the only thing left to do is determine how you’re going to live within them.

2.      Focus on Your Cash Flow

What this really means is that you must prioritize your spending. For example, if travel with family and or friends is important to you, take that into consideration the next time you receive an invite to something you don’t value as much. If you are considering a purchase that prevents you from hitting your goals, pass on it and save your money. The goal is to use your available money (your cash flow) on things that help you move closer to your goals. Because you’ve done the hard work of initially identifying your values, you can evaluate what is important for you to spend and save money on.

3.      Multiple Sources of Income

If your income is fixed on a monthly salary, it might seem hard to enjoy your money because you have a finite amount to use. This can make spending on relaxation or travel feel too frivolous. While it is important to prioritize how you spend that limited resource, it is liberating to realize that your ability to earn more money is essentially unlimited.  Give a side hustle or second job a shot. This may help ease fears of instability in your career, help you consistently cover your bills, and allow you to have a bit more “fun money.”

Are you feeling worried or overwhelmed? You don’t have to navigate this path to conquering overspending fears alone. A trusted financial advisor can help with each of these steps, while lending knowledge and expertise to your personal financial situation. If you'd like to schedule a complimentary initial meeting with me, please use my calendar link here.

Financial Professionals do not provide specific tax/legal advice and this information should not be considered as such. You should always consult your tax/legal advisor regarding your own specific tax/legal situation.

Nick Baker is a registered representative and investment advisor representative of Securian Financial Services Inc. Securities and investment advisory services offered through Securian Financial Services, Inc. member FINRA/SIPC. IMG Financial Group is independently owned and operated. 4550 Post Oak Place, Suite 125, Houston, Texas 77027. TN5476312; dofu 3/2023