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Do you ever feel like you have lost control of your finances and all you do is spend, spend, spend? N1,000 here, N5,000 there, N25,000, N100,000 and so on. Do you constantly have to borrow money from your parents, siblings, or friends? In a way, you cannot really stop spending; there are so many payments that have to be made; your rent or mortgage, school fees, groceries, petrol, diesel, the list is endless. Whilst you can’t really avoid the essential expenses, the real problem is the money that just gets frittered away without you really knowing what it went on.

Here are a few tips that might help to get your finances under control:

Keep track

Write down everything you buy for at least a month: N7,000 for groceries, N3,000 for petrol for your car, even N200 for your daily newspaper; write it all down. You may not realise that you are spending over half of your income eating out each month. Many of us spend money casually without really thinking about it; after you have used a spending diary for a while and tracked your expenses for say a month, you will have a clearer picture of where you can cut back. A spending plan gives you the power to decide how you will spend your money. You will be less likely to overspend when your expenses are planned for.

Create a budget

The budgeting message may seem like it is over-flogged but it really is one of the most vital steps you can take to curb over-spending. Having a simple budget is one of the tried and tested ways to keep your finances in check. Set aside the money you require for your fixed, necessary expenses; groceries utility bills, loans and so on. Then estimate how much you spend outside the essentials, say on clothes, and entertainment. It is usually these variable expenses that make you overspend. Withdraw that money at the beginning of the week, and plan to make it last through the week. Determine what to allot to each category and stick to the set spending limits.

By fixing a spending limit and sticking to it, you will be much more in control of your spending. The key to the success of this saving method is that once you have spent what you have allocated to each expense category, you must make a conscious effort to just stop. As difficult as it might sound, once the budgeted amount is gone, that’s it. No more withdrawals. After the first few months, you will be able to make adjustments that make your spending pattern more realistic. Remember to involve members of your household. You need their buy in for the initiative to be successful.

Pay with cash

If you feel your debit or credit cards are leading you to spend more than you plan to, then put them away for a while and pay with cash. If you are used to making payments with your cards, using cash may seem ridiculous but it is still the best way to rein in your spending should it get out of control. When you use cards to make payments, you feel less impact of how much you are spending because it doesn’t feel like you are actually parting with your money.

With a credit card, you aren’t spending your own money so the ability to delay payment encourages you to spend more than if it was your money you were parting with right now. It is so easy to slip your ATM card into the machine without feeling the impact.

Save

It might seem absurd to suggest that you save when your finances are out of control but this is exactly what you should do to ensure that you are not tempted to spend what could be going towards saving and investing. Put aside some money at the very beginning of the month, when you receive your salary. Automate the process so that your current account is debited at source and the funds are moved directly into a savings account. Once you have reached an initial goal of having an emergency fund of say six months of expenses safely set aside, you can begin to save for other goals. A direct debit from your current account to an equity fund is a painless and effective way to invest towards your long-term goals.

We all love to shop. It seems to be woven into the very fabric of our society. There is nothing wrong with a little shopping from time to time but when your spending gets out of control, it can destroy finances, relationships, even lives. Financial hardship and debt don’t just happen overnight. It takes time to run up unpaid bills, to default on loan repayments, to constantly buy things that you don’t need. If you are focused and disciplined about getting your finances in order, you will soon be back in charge of your financial future and can enjoy the sense of satisfaction, fulfilment and satisfaction that this brings.