Do you overspend at times? Statistics prove that most individuals in Canada feel a loss of control with their finances and this is mostly the result of overspending. Impulse buying can be a hard to quit, and money management only comes with practice.
A recent study states that numerous Canadians overspend on food, clothing and lottery tickets. Although these things may seem harmless in small doses, they quickly add up. If you want to break free of constantly overspending, here are three tips to get you started:
1. Use mostly cash
Credit or debit when making a transaction is convenient, but it could be the reason for your overspending. Using credit to pay for small ticket items could mean unnecessary spikes in your interest rates and fees, which could impact how well you’re keeping your budget on track. By using cash as your primary payment option, you’ll be able to physically see how much money you’re spending at the check-out, and less likely to overuse your credit cards.
If you already keep cash on-hand, be wary of using your credit with money in your pocket – this is a subconscious mind trick, and it could be making you spend more than you have.
2. Create goals
Your goals don’t have to be extensive, but they should be realistic. Whether it be cutting down on buying coffee, or sacrificing a night out, writing down what you wish to achieve will help you stay organized financially. As well, it will help you visualize a budget and stick to it. Think of it like calorie counting – you know your triggers, so make goals to prevent falling astray from your plan.
Controlling your money starts with dedication to your goals, and through some minor sacrifices and lot of ambition, you’ll see personal success when it comes to will-power and money saving.
3. Be on the top of your bills
Often, less-than-rational money spending decisions can leave us face-to-face with those monthly bills that are painless to look at (not to mention, seemingly impossible to pay off). However, the instinct of “dealing with it later” is the worst thing that you can do.
How you borrow and spend money is extremely important when it comes to maintaining a good credit score, and building a solid financial future starts with learning how to manage your spending. Through your goal-making process, write down how much you owe to creditors, and make sure it’s a part of your monthly budget. Otherwise, your saved money could be used for paying fees… and that’s not where you want your hard-earned cash going.
Handling money isn’t a skill that we are taught in school – it’s something that we learn the hard way throughout adulthood. Impulses trigger human behavior, and they can influence your financial decisions. The initiative to save money begins with skipping your bad spending habits, and although this process starts with small steps, you’ll be guaranteed less debt and more savings over time.
Money management can only help you further in life. Once you have invested the money in the right direction, consider building your credit. And, the best way to do that is with a car loan. Visit Canada Auto Experts or call 1-855-550-5565 to talk to a credit specialist today and fulfill your dream of car that you have been saving for with a great credit score.