Go On a Spending Diet – 5 Ways to Be More Financially Healthy

admin | March 21, 2014

Good financial health ensures that the other areas of your life go more smoothly. Unfortunately, not everyone has a grasp on their finances. In fact, there may be a number of bad habits that impinge on your wallet. But it’s not too late to get back to full financial health. Follow the steps of this spending diet, and you’ll find that instead of carrying around the extra weight of debt, bad spending, or unhealthy finances, you’ll have enough for all your needs.

Examine Your Credit and Credit Card Use

The recent credit crisis has taught a lot of people that credit cards can lead to a lot of problems. Unless you are extremely disciplined, financially responsible, and have self control, your credit cards are probably getting you into trouble. Still, many are using lines of credit and paying more than they have too. You should stop using credit cards in order to avoid paying interest on debt. This change in habit can also prevent fees from non-payment or going over your limit.

Consider Switching to Cash

If you want to break your habit of buying things you don’t have the money for, consider using cash. If you stop using credit cards, consider keeping your debit card in the wallet too. People tend to spend more freely when using a card compared to using just cash. The act of taking cash out of your wallet and handing it over to the cashier, helps bring home how much you are really spending. Give yourself a weekly allowance in cash for expenses and try to avoid going to the ATM. Physically holding, counting, and then giving your money away will help you keep a tighter budget because you know how much you have left for the week, and when you’re out, you’re out. Find out what payment method will help you control your money the best, and stick to it. Most importantly, don’t spend what you don’t have.

Overcome the Need to Buy New

It is fun to buy a shiny new toy like electronics, a car, even appliances. Paying top dollar for these items is really unnecessary in today’s market. You can find certified pre-owned vehicles released just last year for thousands less than new. Gently used and even new appliances and electronics are available through online websites. By comparison shopping, you can get a great deal on big purchases, many of which will be practically new. If you get out of the habit of buying everything brand new, you’ll be surprised at how much money you are saving—especially with big purchases. It’s difficult to maintain this mindset in a world that is always pressuring us to get the newest, biggest, or best, however, if you do a little research you’ll find the best deals to help you get the quality level you want at the price you want.

Do Your Homework

While it’s great to get the products you like best, or work best for your family, being loyal to a brand or company is not doing you any favors in the financial department. Before signing up for a new service, or buying anything for the home, shop around for low cost deals. As long as you don’t sacrifice quality for savings, buying used is a good habit to develop. With the resources available to us on the internet, it is so easy to price compare before you buy—and from the comfort of your own home! You don’t have to go from store to store, comparing and contrasting to find a great deal. You can simply compare online, and then make your purchase. Oftentimes, we just buy what is convenient, but this could end up costing you in the end. If you put in a little extra time to explore your options before making a purchase, your personal finances will be in much better shape.

Cut Down on any Costly Habits or Addictions

Addictions cost money. Yes, addictions like smoking or drinking can get expensive, but even addictions like eating out or going to movies can really take a toll on your bank account. Chances are, if you have expensive habits or addictions, it is having a bad effect on your pocketbook. Even if these habits don’t seem expensive, if you are habitually and continually spending money on these things, it will add up. Consider cutting back or even cutting the habit completely for a healthy wallet and body. Dropping bad habits can help improve your overall financial outlook, and even if the habit isn’t necessarily “bad,” it will be beneficial to your finances to do everything with more moderation. Find the problem habit and replace it with a better practice or nip it in the bud.

If your finances are all over the place and you are ready to get things in order, the first you need to examine is your spending. If you don’t have a budget, get one in place. If you don’t frequently monitor your finances, use personal finance resources to help you make a budget and stick to it. Sometimes, being more financially healthy is just a matter of getting organized. Pay attention to where every penny is going, and you will find that your financial troubles are minimized. Like with any diet, you need to have self-discipline and stick to your plan, or you will fall off the wagon. Information for this article was provided by the financial experts of Checks Superstore.