If you’re spending more than you earn, ask yourself what you could cut out or cut back.
If your spending habits have you digging for pennies before the next payday, maybe it’s time for a change.
Running out of money before payday, causes a lot of undue stress that can negatively affect your health as well as your pocket.
You can reduce this stress and get back on track with your finances by altering your spending habits.
Try these budgeting techniques:
Make a Master List.
List all your loan payments and credit card bills. This will create an awareness about the number of creditors, the total amount you owe, and the due dates of your monthly payments.
Have five columns on the list:
- Name of the creditor
- Monthly repayment
- Due date of each month’s payment
- Amount of interest you’re charged
- Total amount you owe
Add Other Monthly Expenditures To Your Master List.
Next, list things like your rent or mortgage payment, grocery costs, gasoline costs, and anything else you pay monthly.
Estimate the amounts for your cable, water, garbage, cell phone, and utility bills, using last month’s statements.
Your Master List should reflect all your outgoing expenditures.
List out your bills on their importance and highlight them in their priority.
The next step will be to look at all other remaining expenses. In looking at these non-priority bills, you will discover that you can lower some of the expenses.
Examine Frivolous Expenditures.
Are you spending $30 a week on fancy coffees?
Do you stop after work for a few beers with co-workers two or three days a week?
If so, consider the amount of money you spend for these activities and which of these expenses can you reduce and which you can do away with for a period of time till you have your finances sorted out
Contact Your Credit Card Companies To Request Lower Interest Rates.
Make a notation on your Master List of the reduced rates you receive and those who have declined your request.
Make the decision to stop using credit cards with high interest rates.
Take Decisive Steps To Reduce Your Expenses.
If you’re paying out $180 a month for premium cable channels, you have the power to cut your cable bill simply by picking up the phone and calling the cable company.
Determine How You Can Bring In Additional Dollars.
Consider a second job and use the extra money you earn to pay off debts.
Recognise that you have the power to change things.
Keep Your Master List With You Throughout The Day.
Each time you’re about to make a purchase, glance at the list and reflect on your bills. Ask yourself if this is a need or a want!
Ask yourself if you really need what you’re about to purchase. Allow yourself to feel proud about this new routine.
Record Your Thoughts And Feelings About The Changes You’re Making.
It’s a challenge to try to change something about yourself, and how you manage your finances is no different.
Write down how you’re feeling about adjusting your spending habits.
Be optimistic that you can and will change your financial situation.
If you consistently find yourself running out of money, vow to follow these strategies to change your behaviour.
You have the choice to alter your financial habits in powerful ways. You Can Do It!
Do read this other blog about developing a wealth mindset
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