When it comes to managing our finances there’s always money going in and coming out. And it can be tricky trying to keep track of where your money needs to go next. You’ve heard of the saying, “money can’t buy happiness”. But do you believe it? It is no surprise that we enjoy spending money. Especially since we work hard to earn the cash we need to pay the bills and are constantly finding other ways to spend it. But are there times where you feel like you are spending more money then you are making? Not to mention all of the unexpected costs that pops up. We all have them, those spending habits that we wish we could break, especially when it comes to tackling debt. But when it comes to debt management, it is about changing your thinking when it comes to what you’re spending. And it is when those spending habits start getting you off budget that you need to start to re-evaluate your financial situation. And if we’re being honest, we’ve all been there. Whether you’ve gone over budget for the month, occurred an unexpected cost, put more on your credit card than you can handle, we’re here to help you get back on track these financial lessons can also help you learn how to make better spending decisions.
It’s okay to have bad spending habits. You are not the only one. But it is recognizing these spending habits and taking the next steps on how to make better spending decisions that will have the most impact on your bank account. These habits can be a variety of things depending on your lifestyle and interests, but what bad spending habits can often lead to are bad savings habits. And as much as we would all like to spend more instead of save more, saving money and preparing you’re your future financially should always take precedence. So how do you get into good savings habits? Well, it starts by breaking those spending habits.
Know Where Your Money Is
Are you keeping track of your spending throughout the month? Do you know how much money you put onto your credit card each month? Off the top of your head, do you know your total monthly expenses? Instead of pushing it aside or worrying about it later, it’s important to keep your spending top of mind. Not everyone keeps track of what they’re charging to their cards, but by throwing purchases onto your credit card without keeping your budget in mind is what can get you into debt in the first place. By being aware you are in debt and that you have blown your budget will help you be more cautious when it comes to your spending. There shouldn’t be any extra expenditures when you’re already in a financial bind, and by understanding how you got yourself into this financial situation is what also needs to be addressed. Did you miss a bill payment and the interest is adding up? Is it a big month in terms of expenses? Has there been an emergency where financial assistance is required? No matter what the situation, understanding why you’re in the financial spot you are in is what will help you get out of that bind, but will also help you prepare for the future accordingly. When you’re in this kind of financial position, this is where we can step in to help, because that’s what GoDay is here for – making sure you stay afloat until your next paycheck and get you back on track. 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. This is also the time of when our customers need our help, when they’ve lost track of their spending. Especially if you’re trying to tackle debt, putting purchases on your credit card compared to using cash or debit is what can lead you off track. When it comes to the end of the month and you’re looking at your credit card statement, you don’t want to be surprised by your statement, you want to be prepared for how much you’ve actually spent.
Paying For Convenience
There are times where we pay for something we know is a premium, because it will result in making life easier or happiness. And that’s okay, but you have to have your budget in mind. Things like taking a cab instead of transit or walking, cleaning services, etc. It is no surprise that convenience has its price, and that’s no different in the food industry. Food and dining out is one place that people try and save money. Don’t want to cook, but there is food in the fridge? Whether it’s ordering in, taking out, going out or grabbing on the go, the convenience factor for the food industry is one of those bad spending habits we all fall victim to. Especially when you’re craving something specific, impulse food purchases are something we commonly forget to budget for. As take-out and drive-throughs are now a thing of the past, the latest is the boom in technology and how it is shaping food trends and consumer purchasing decisions. All done at the tips of your finger, your food is also now living in a digital world, and you can order through a number of apps and services all trying to master the digital food space making it easier than ever for you to spend after a long day. So how do you break these habits? Practice. It involves pre-prepping meals, organization and being creative when it comes to grocery shopping. Think of meals that will be easy to make and use as leftovers for those busy nights and lunches the next day. Pick a day to do all your grocery shopping and prep while you start to put everything away so you can use your fridge as a grab and go throughout the week. With food already prepped to go, you won’t have to worry about the time crunch and have the same convenience factor as eating out. And it’s not just food that people pay for the convenience factor, there are many things that people pay for but this is one spending habit that can make a big impact on your budget.
Stop Making Minimum Payments & Start 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. And this becomes as issue for things like making minimum payments. When paying the minimum, you’re most likely paying interest from bill to bill and not actually tackling your debt, but accumulating more debt. This is why your savings matter. It is also what GoDay is here for. Our payday loans are not intended to provide a long-term financial solution – they are intended to solve urgent but temporary cash-flow needs, especially in those times where we can’t keep up financially or when you’re making the minimum payments and falling financially behind. 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.
Have you heard of the saying “treat yourself”? These guilty pleasure purchases have become a catchphrase that when you hear of someone “treating themselves”, that usually means money was spent that was not originally budgeted but results in making you happy. We’re not saying that you don’t deserve special treatment, but this also has to be done within reason. This also goes along with justifying your purchases because we don’t want you to be giving yourself an excuse to go out and spend money. Everyone splurges now and again, but it can also be on little things as a form of a reward and doesn’t have to break the bank. But treating yourself to things often can have the same effects as unplanned spending because of a lack of planning (getting take out when there’s food in the fridge at home), falling out of budget and financial routine. Staying on track and treating yourself less often can help you save money towards the things you really want to do or buy, like that vacation you definitely deserve.
Financial Wants vs. Financial Needs
Do you know the difference between a want and need? Now take those wants and needs and think about how much they cost. Financial wants are the items and things we desire, compared to our financial needs which our financial obligations such as bills, debts and everything else life throws at us that we need to pay for. We’ve become accustomed to some of these things that we think we “need” them because we’ve had them for so long when really it’s more of a “want” and would be just fine without them. One of the most effective ways to reduce financial stress and make your money more meaningful is to change the way you spend. Ask yourself “why” when you’re spending. Is this truly a need, or a want? How will this item add value to your life? Asking yourself these types of questions forces you to engage with what you’re spending money on in a more meaningful way and can help lead to more changes in the way you are spending in the future.
Avoid Impulse Purchases
As mentioned above about financial wants and financial needs and treating yourself, these expenditures are usually impulse or spur of the moment decisions. Are you one of those people that doesn’t read the price tag when purchasing an item? Have you ever purchased something on a whim or just because? When it comes to spending, staying within a 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 can help you avoid unplanned spending.
Know Your Financial Means
Are you living within your financial means? It sounds easy enough to do, right? Well, would you be surprised if we told you that more people than you think are constantly overspending and falling behind financially. This is very common when it comes to materialistic goods, the ones we’re buying because we think it will make us happy. Living in a society where the latest gadget is a “must have” and brands create good marketing to make us feel we “need” these things is one of the ways people are constantly overspending and finding themselves in debt. Living within your means is not always easy, but it is the best way to avoid excessive debt. Canadians are burdened with historically high levels of household debt, according to Statistics Canada. Simply put, too many people are spending more than they earn.
Are you looking to break those spending habits and get out of debt? Whether you’re looking for help to get out of a financial bind or help keep you afloat until your next paycheck, get your payday loan online. Learn more about us, and how we are helping people get back on track and to think about making better spending decisions.