If this sounds like you, it’s time to closely examine your money habits.
The first thing you need to do is take a financial inventory. You can do this by tracking your spending. You can’t know what you should cut back on until you know where your money is going and how much you’re spending.
Starting today, keep a notebook with you and jot down every purchase you make for one month. You’ll be surprised to see how much money you’re spending on things that you don’t really need–or worse, things you already own but didn’t realize.
I know many people who went shopping for a new outfit, only to discover they had the same one shoved in the back of the closet–tags and all. So take inventory of your closet while you’re at it.