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

Big Changes Coming to Credit Reports

August 18th, 2017 | Author:

[I]f you have a bad credit score, you may benefit from the changes coming to credit reports soon. If you’re one of the lucky ones, you’ll see your credit score improve. In fact, it is expected that up to seven percent of those who have credit histories could see a benefit. What Changes Most civil […]

Continue Reading »

Be Realistic When Budgeting to Get Out of Debt

August 17th, 2017 | Author:

[Y]ou’re deep in debt and you want to pay it off to improve your credit score and to make life simpler. You want to pay it off as quickly as possible, which means making some major changes in your finances and life. Many experts tell you to stop spending any more money than you have […]

Continue Reading »

3 Ways You Can Waste Your Money

August 11th, 2017 | Author:

[I]f you’re trying to become more financially stable and improve your credit rating, you must be careful with how you spend your money. While you don’t want to give up everything fun in life in order to be frugal, you also want to avoid wasting your money on unnecessary expenses. Here are three ways people […]

Continue Reading »

Starting Over from Bad Credit

August 9th, 2017 | Author:

[Y]ou hit rock bottom with your credit. All of your accounts went to collections and your car was repossessed. You don’t even want to check your credit score because you know it’s bad. While the situation might seem hopeless, you can turn it around. Once you’ve lost any credit worthiness, you are ready to work […]

Continue Reading »

How to Talk to a Boyfriend/Girlfriend about Their Credit Rating

August 7th, 2017 | Author:

[I]f you’ve been dating someone for a while, you may be getting serious. Before you start dreaming about the perfect wedding day or what life will be like with 2.5 kids and a dog, you need to know you’re on the same page about important issues. While many people think nothing of talking about how […]

Continue Reading »

3 Ways Credit Matters to Everyone

August 4th, 2017 | Author:

[Y]ou pay everything with cash. Your motto is “If I can’t pay cash, I can’t afford it.” That means no credit ever. You may assume that you don’t need to worry about your credit score if you don’t plan to use credit to buy anything. Unfortunately, credit isn’t just about loans and credit cards. A […]

Continue Reading »

3 Tips to Help Your Kids When They Have Summer Jobs

August 2nd, 2017 | Author:

[I]f your kids are old enough to take on a summer job, now is a golden opportunity to teach them about money and finances. If you start them out right, they will know how to handle money and financial responsibility for when they are earning a full-time income. Here are three tips to use this […]

Continue Reading »