3 Tricks that Can Help Reduce Your Financial Frivolity
Most of us misspend our funds occasionally, sometimes on frivolous or spontaneous purchases. However, if you find yourself falling deeper into debt with your monthly budget in growing disarray, it’s time to get serious about your finances. Here are a few ways that you can get a handle on your bad spending habits.
Use Cash
It keeps getting faster and easier to make purchases now that most merchants handle all of their transactions electronically.
Your debit card, and sometimes even your cell phone, can be used just about anywhere from grocery stores to vending machines.
This level of convenience is dangerous for many because it’s easy to disassociate your bank balance from a piece of plastic. Using cash, however, is much the opposite. Handing over a dollar bill is a tangible loss that your brain can easily process.
When you see how thin your wallet is, you’re more likely to think twice about buying things you don’t need. It may be a little bit slower in your day-to-day, but it’s worth it if it can prevent spontaneous purchases.
Track Your Purchases
Whether you’re using cash or card, keep your receipts or write down information about every transaction after it happens.
If it’s easier, take notes and pictures with your phone. This can help you in a couple ways. For instance, when you take the time to write out a purchase, it really makes you recognize what you bought and how much you spent.
It makes it harder to ignore a frivolous purchase. Additionally, it can help you analyze your spending. Some banks offer online services that categorize your spending, but you can also do it yourself.
Add up how much you spent on food, gas, clothing, etc. at the end of every month and see how it looks.
Calculating for yourself how much you spent on fast food, for example, will tell you if you need to cut back or not.
Consult Financial Experts
If you are struggling to reduce spending or control your buying habits on your own, meet with financial experts who can help.
If you have credit card debt, find a credit card counselor. If you have an investment account, schedule an appointment with your agent or a financial adviser for information on conserving your money if needed, or releasing more for necessary purchases.
You can also revise your budget if necessary to make sure there is enough money available each month for basics and emergencies. It may even be helpful to contact bankruptcy lawyers if you feel that your financial situation is beyond salvaging with simple adjustments.
Even if you’ve made positive changes already, it can still be helpful to talk to a bankruptcy lawyer to see if they have any extra advice that can help you avoid financial disaster.
You are on the right path if you are trying to get your spending under control, with a few basic steps like these, you can get your financial affairs in order.
Category: Budget
