Are you someone who is battling some bad spending habit? If answered yes, you need not fret as you’re not alone. Despite knowing that it is better to use cash instead of credit, we often tend to swipe our plastics and even after knowing that penalties and late fees can hurt our credit score, we still tend to cross our due dates on loans and credit card payments. This clearly implies that we try our best to avoid bad spending habits but we fail to do so at the end of the day. This is why we need to inform ourselves about the different ways in which we can put an end to bad spending habits and make way for good financial habits which can make us a better individual who is financially responsible enough.
- Opt for a go-cash only strategy
Credit cards are known as necessary evils and they are the ones which prompt users to overspend. But did you ponder over the fact that you won’t be able to use them if you don’t have them with you? Leave back your credit cards at home and stack your wallet with enough cash so that you can buy according to the funds that you have with you. It is always better to stick to debit or cash for all kinds of purchases.
- Plan for the long-term
Do you find yourself spending too much money on smaller items like vending machine snacks or coffee? Here is a good way of crushing down this habit! Think of something which you earnestly want to accomplish, it can either be a vacation, or emergency fund or getting out of debt and keep reminding yourself of that long-term goal. This way you will no longer will tempted to blow off money on unnecessary items.
- Differentiate between wants and needs
You have to think whether you need those new shoes or do you just wish to have them just because you like them? Whenever you think of buying something, ask yourself whether you need it or want it. If it’s a necessary item and you need it, buy it and if you don’t, postpone it for a later purchase. Also consider your affordability before buying the item.
- Give an allowance to yourself
Take a close look at your budget and know how much money you can afford to spend each week. Next, you should withdraw this amount from your checking account during the initial phase of the week so that you can spend it guilt-free. As soon as you spend the entire money, stop spending on anything unless and until it is something very urgent.
- Allow someone else to shop for you
If you’re looking for an easy way of breaking your bad spending habits, you can let someone else shop for you. Give him a shopping list and ask him to buy things so that you don’t fall for impulsive buys.
Therefore, by following the above mentioned tips, you can easily stay on top of your finances by bidding goodbye to all bad financial habits. You will evolve as a financially responsible individual.