You are not alone if you often find yourself fighting the urge to splurge. If you are often asking yourself the question of “where’d all the money go?” here are some tips to help you get that spending under control.
Don’t spend what you don’t have – It is a recipe for financial disaster if you spend money you don’t have, that includes putting items on credit cards when you can’t afford to pay the cash for them.
Build up an emergency fund – It is wise to have at least three months worth of expenses saved up in a separate account for emergencies such as job loss, disability, or divorce. These emergencies can leave you in debt with new expenses popping up or loss of income. For example if you need $3000 to cover your bills for the month, save $9000 and never touch it.
Use your cash – studies show that people who use plastic to pay for things often overspend, and it is better to use cash as you can see the money physically leaving you.
Hire a financial planner – Financial planners are not just for the rich and they are not as expensive as you may think. They can help you to sort out your money, pay off debt, keep it away, and plan for the future.
Put it in writing – It can help to see what you owe in front of you. Create a spreadsheet and list out every creditor you owe. It may open your eyes to how much you owe and you may discover you have more than you thought. It may also be a relief to see things are not as bad you thought if that is the case. Either way, it will help you to start planning a way to get rid of debt.
Negotiate your interest rates – Many people don’t realise you can call up your banks, lenders, or credit card companies and ask for a better deal, either for lesser interest rates or ask for fees to be waived. They are often very competitive and will not want to lose your business.
Cut the spending – Always look for ways to cut down costs, for example switch to no interest cards, or refinance your car or home if necessary. Look for ways to pay bills where it becomes cheaper for you, for example monthly direct debit is often cheaper than paying in person.
Pay three times the minimum due – The minimum for repayments is often not enough to get you ahead of your debt, especially when there is interest being incurred. Always pay more than the minimum.
These simple tips can help you find ways to control your spending and fight debt but it is always important to consider your personal financial situation. If you need help to get your debt under control, contact Life After Debt today.
Source: Dr Phil.com