How to Change Your Spending Habits

March 8th, 2017 | Author:

[M]ost people who spend too much know it. They run into the store for paper towels or a gallon of milk and come back with two or three bags of stuff. Every time they sit down to pay the bills and see they don’t have enough money to cover expenses, they promise never to splurge again. It’s a promise they keep until the next opportunity arises.

If this scenario sounds all too familiar, learn how to change your spending habits so you can enjoy financial freedom.

Set Up Automatic Savings

For some people, putting money aside in a savings account is just a goal they set for the future. Every time they plan to save money, something catches their eye that they must have. To prevent this situation, set up automatic transfers to your savings account. The money comes out on payday before you have a chance to spend it if you set the date of transfer to coincide with your pay dates.

Even though you can still withdraw money from savings, many people are less likely to do it than if the money is sitting in a checking account.

Pay with Cash

You’re less likely to go over your budget if you only carry a certain amount of cash. Leave your debit cards at home and only take the amount of cash you need for specific expenses. For instance, if you’re just buying a gallon of milk, you only need to take $5 in the store with you. While other items may catch your eye, you won’t be able to buy them.

This tip means you will have to make a second trip to the store if you really want to buy something extra. Since much of the spending is spontaneous, you won’t be tempted once you leave the store.

Get Rid of Credit Cards

Cut up your credit cards, so you won’t be tempted to use them. You can leave your credit accounts open to help you establish a long credit history and improve your credit score, but you won’t use the cards and increase the balance.

If you follow these tips, you’ll find you can break bad spending habits.

Newest Answers

Common Myths on Building Credit

October 21st, 2017 | Author:

If you are just starting out on your own, you may have a hard time getting credit cards or loans because of a lack of credit history. You must build credit to get access to the best credit cards and loans, but you can mess things up if you don’t know how to do it […]

Continue Reading »

3 Things to Do When You Know You Can’t Pay a Bill

October 20th, 2017 | Author:

One of the worst feelings you can have is when you have a bill coming due and no way to pay it. You have either spent all of the money or you have to spend it on something more important. You don’t want to have to deal with those phone calls from creditors because you […]

Continue Reading »

Why You Should Change the Due Dates on Your Bills

October 11th, 2017 | Author:

[Y]ou open up the credit card statement only to see another $30 late payment fee assessed. Ugh! You can’t believe you forgot to make a payment on time again. In between running the kids to daycare or school, meeting with clients and taking care of errands on the weekends, some things just get pushed aside. […]

Continue Reading »

Good and Bad Reasons to Have a Credit Card

October 10th, 2017 | Author:

[G]etting approved for a credit card is a sign of responsibility. It can give you freedom with your finances. For instance, you can book a hotel or buy airline tickets, which would be difficult without a card. You should know why you want a credit card and understand if those reasons are good or bad. […]

Continue Reading »

Should You Avoid All Debt?

October 6th, 2017 | Author:

You hear financial experts preach about getting out of debt. They tell you to cut up your credit cards and pay for everything with cash. While some people may need to follow this advice, you may wonder if it’s the case for everyone. Should you avoid ever having any kind of debt again? Not Avoidable […]

Continue Reading »

Why Fall is a Good Time to Learn to Save Money

October 2nd, 2017 | Author:

[T]he busy summer season is behind everyone, and the upcoming holiday season is a few weeks away yet. Now is the time to focus on goals you have set. One of the most important is saving money. Fall = Transition Time You are transitioning from the lazy days of summer, times when you spent a […]

Continue Reading »

How to Protect Your Identity at Home

September 27th, 2017 | Author:

[W]hen you hear about identity theft, you may think about all of the public computers in use as well as the credit card machines in stores. While these are all areas that are vulnerable to hackers and those who want to steal your identity, one of the most dangerous areas is at home. Why? Because […]

Continue Reading »