We all have them, those financial habits that we wish we could break, especially when it comes to tackling debt. But when it comes to debt management, it’s changing your thinking when it comes to spending. That’s why we created a list of the most popular money habits we hear about that are holding people in debt and how to break them.
Minimum Payments
We’ve talked about using your credit card wisely before, because if you’re making minimum payments, most likely you’re just paying interest from bill to bill and not actually tackling your debt, but accumulating more debt. Getting out of the habit of making minimum payments is one of the best ways you will start to see your debt disappear. So next time your credit card bill comes in, budget wisely to take that first step in managing your debt.
Impulse Purchases
Is it something you want or something you need? Or are you one of those people that don’t read the price tag when you see something you like? When it comes to spending, staying within budget is key for debt management, which doesn’t happen when you spend sporadically. As much as you can try justify your spending, this is how marketers and retailers make their money off of you. There are many tips on how to avoid impulse purchases including sticking to your list and avoiding the mall that can help you avoid unplanned spending.
Not Keeping Track
Are you paying attention to your spending habits? What budgets do you currently have in place? There are many things you need to start keeping track of to ensure that you’re not spending more than your making and that you’re tackling your debt head on. We’ve talked about why you should be keeping a spending journal and breaking down your where your money is really going for better money management habits.
Not Saving
Are you one of those people that no matter how hard you try you’re unsuccessful at saving? Saving is one of those things that need to become a habit and is much easier said than done. Taking a step back and evaluating your spending is the first step because you can’t start saving when you don’t know what you’re spending. Once you’ve taken a good look at your finances, there are many fun ways to start playing the saving game so you can see results.
The Little Things
It’s always the little extras and add-ons that seem to add up the most. We’ve gave you our tips on how to prepare for big purchase spending, but it’s the everyday and unexpected expenses that always seem to throw a wrench in any budget. But it is about creating that wiggle room in your budget for things that may pop up, all while be aware of what you are spending your money on and making sure you’re not paying for those extras.
Are you ready to get out of debt? Let us know your money management tips below.
