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Budgeting and Spending Behaviors to Stop Now

Before you go get that extra job you may want to look at where your money’s going, it may just save you.  Even if you aren’t to that point you may want to take a look before you are. We all do things that we shouldn’t and try to justify it. According to Nerd Wallet the average family is in debt over $15,000, home debt over $150,000 and education debt $33,000. In total as a society we are in excess of 11 trillion dollars. So we live in an income class above ours and pay penalties for doing so. We live from one payday to next, never having quite enough money.

overspending habits

Do you end up making payments late?

With late fees as high as 18 – 20 percent it can quickly add up not only in your wallet but in your credit standing. So you think just another person saying just pay on time right? Well of course that’s not always possible.

Some things you can consider:

  • Figure out a budget- there are several free services online that can assist.
  • Contact your utility companies and companies you owe, like credit cards and see if they will let you change your due date. This can help sometimes to work with your budget.
  • Stay on top of things, don’t wait.

Banks, friend or foe

The bank can be both to us. Taking our money when we don’t make good budgeting decisions for spending more money than we have. These charges add up.

What to do:

  • The budget is number 1
  • Talk to a bank personal, not the teller, sometimes they can give great pointers and sometimes may even forgive some of the fees.
  • Set up a savings account
  • Leave the old brick and mortar bank, about 40% of young people polled have done it or are considering it. This way you can’t overspend they won’t let you.

Paying with someone else’s money

People are noted to barrow money for everything. Not thinking ahead thoroughly that this just causes another bill and extra charges.

  • Before barrowing again think what you are doing it for and if you really need it.
  • Try to put away a little piggy bank money every week. In time this will add up and become your emergency fund and you can lend yourself the money you need.
  • Pay more on your credit cards than the lowest available payment.

Livin’ someone else’s life

Our society makes it so easy and makes it seem like it’s alright. We start trying to keep up with what the other guy has, even if we can’t afford it. You can open accounts to get that object you wanted and pay it off overtime. You can delay the payments sounds good but they are not delayed forever.  Before we know it we are living a great life but it’s not ours. To be ours we would have to bring in a whole lot more money.

  • Before you purchase think is this a want or need
  • If a want wait on it at least a few days, usually you realize it’s just that a want not a need.
  • Don’t let the money burn a hole in your pocket. It’s ok to have money in your pocket. It’s ok to have some free credit.

In conclusion, we live in a society that has made us into indentured servants. Making us believe we need things that are really wants.  When we see others with things we want we think of ways to get it.

  • Look at everything you spend money on, the online services like Mint or even Paypal are very helpful with this categorizing where you are spending.
  • Make sure you need not want what you are planning to buy.
  • Don’t make spontaneous purchases.
  • Look to spend down your debt, don’t just make minimum payments, whenever possible.
  • Only take out loans when there is no other way to obtain your needs.
  • Make a piggy bank whether in a savings account or an actual piggy bank so you have your own loan department. You won’t pay back 2 or 3 times what you barrowed.
  • It is ok to hold off and wait for things, we are not supposed to have everything.
  • Make a budget and stick to it as best you can. A budget will help organize you and more aware where your money goes.
  • When you receive your pay give yourself a budget for you. People tend to get frustrated when they have no money that they can call there’s and give up the budget and plan. They even go into more debt to get this “me” money. It doesn’t have to be a lot just something to call your own.
  • When you have to make a purchase do some homework and look for sales, discounts or bargains.
  • Don’t forget the power of coupons.