Five tips to help you get real about your finances

Whether you're a shopaholic, an impulsive buyer or just plain in denial about your financial situation, it's essential that you take control while you still can. Not everyone needs a complicated piece of budgeting software to make changes. Follow these simple tips to curb your spending and take a more realistic approach to money.

1. Stop ignoring your financial situation. Many people have their checks deposited and just go from there, paying bills and spending left and right until the money is gone (or worse, overdrawn). Don't pretend that you have limitless financial resources. None of us do. There are limits to what you can and should spend. Acknowledge them.
2. Give yourself an allowance. This is one of my favorite tips because it's so crucial to not feel totally deprived when you're sticking to a strict budget. Budgeting is necessary, of course, but it is nearly impossible for some to not have a little wiggle room for a purchase now and then. If you can truly afford it, give yourself a weekly allowance. When you spend it, it's gone, even if it's spent on the first day. You can also save it your allowance for a bigger purchase later on. This will give you the feeling of being able to splurge once in a while without going overboard.
3. Find ways to make extra money. Actually, that's only half of the story. Once you make extra money, don't spend it. It's easy to think, "I've got some extra money, it's okay if I buy this one thing." Remember that just because it's extra money doesn't mean that it doesn't have a purpose. Whether you're trying to earn more just to cover your living expenses, to get rid of debt or to save, those dollars and cents have a purpose.
4. Tell family and friends your story. I know. It's a kind of social rule that you don't talk about your finances. I don't mean that you should give those closest to you the down-and-dirty details of your financial problems. Talk to them about your financial goals and how that may affect how you conduct yourself. If, for example, you go out twice a week with friends but you know you can only afford to go out once or twice per month, let them know that. Knowing the reason behind your decision will hopefully deter them from using peer pressure to get you to go out.
5. Think before you buy things. If you're an impulsive shopper, this will be hard. You need to think about your purchases before you make them. This doesn't mean that you can't make the purchase. Just make a pact with yourself that you'll think about it for 24-48 hours before you fork over your hard-earned cash. In many instances, you'll find that you've forgotten all about the item you so desperately wanted just a day or two ago.

What are your tips for "getting real" about finances? Share them in the comments.

Photo courtesy of Wickerfurniture via Flickr.