Tips On How To Fix Bad Spending Habits
Forming bad spending habits is a very easy thing to do, but it can be an extremely hard thing to stop. These bad habits easily lead to different health problems including insomnia, high blood pressure, ulcers, migraines, rapid weight loss/gain, and excessive drinking/smoking. Though it may take a lot of effort, you can get a grip on your life and overall financial future by working daily towards cutting out bad spending habits.
Before you can be successful in breaking this habit, you must first put forth the effort to gain control of your finances. Here are nine tips that can be used to get you closer to reversing you terrible spending habits:
– Create a realistic monthly budget that you will be able to stick to. Cut back in the areas that are necessary for your financial survival like shopping, eating out, and making other unneeded purchases.
– Educate yourself on how to gain better money management skills. Learn the rules and methods needed to balance your personal finances including monthly bills, credit cards, and investments.
– Pay at least the monthly minimum on as many bills as possible. It would be ideal to pay the minimum on all of your bills. If and when possible, prioritize your credit card statements by paying more on the cards that hold the highest interest rates. Once you have gotten caught up on your monthly minimum payments, began to take the steps towards paying off your entire cards balance in full by starting with those high-rate cards and working your way down towards those low-rate cards.
– To insure that all of your monthly payments are made on time, you may be interested in setting up automatic debit payments with your bank to insure that your bills are paid on time each month.
– Start up a savings “rainy day” account to help with the effort of maintaining the positive habits that you will learn when prioritizing and budgeting.
– Don’t be afraid or embarrassed to seek professional help through counseling or a self-help group. Remember that habits are addictive and can sometimes come in clusters like gambling, alcohol abuse, migraines, and short tempers. Often times you can’t start the healing process without help
– Pay all of your purchases with cash, checks, or a debit card instead of on a credit card with borrowed funds.
– When you want to buy items that are out of your budget, create a “wish list” and set up a budget to save money for your wanted item, without sacrificing items that you need to pay for each month.
– Do not make any purchases online or over the phone from any television home shopping channel
Following these few rules can help you to put down that nasty habit, and gain the financial freedom that you deserve.
Jessica Williams is Consolidated Credit’s Marketing Communications New Media Coordinator. As a member of the education team, Jessica focuses on helping consumers make better financial decisions while living debt-free. She has previously worked with Take Stock In Children, where she was a mentor and communications specialist, and SouthPromo.com, where she managed community relations, event planning, marketing, and public relations. Jessica attended both the University of Florida and the University of Central Florida where she received her B.S. in Interpersonal/Organizational Communications and Marketing. Connect with Jessica on Google+