Tired of scraping through with little left over for life's luxuries? Then it's time you tightened up your bad spending habits.You are broke again - just like last month and the month before. It happens every time you're about to get paid - you run out of money and don't know how you will make it to your next paycheque. Not only does it mean that at times you've had to hit your friends for cash because you can't afford staples like lunch or taxi fare. It also means that your bigger dreams like travelling to Europe or buying a new car will never get a look in.
Clearly your approach to your finances needs a complete makeover. Setting a weekly budget and firm financial goals will, week to week, take the stress out of making end meet. Longer term, it will help you work towards that big overseas trip or even a deposit on a flat if you're together enough to be thinking that far ahead. To adopt a more grown-up approach to your finances and make your money work for you, break the following unhelpful spending habits:
1 Maxing Your Credit Card
Can't make a dent in your credit card balance, which is always at its upper limit? You would do better to take out a personal loan, offload your entire credit debt then chip away at the personal loan repayments, which will be at a much lower interest rate. To prevent the problem arising again, become more hardline about your credit card use. Never go shopping for anything without first setting a budget. If buying an item like a duvet, pair of shoes or new hairdryer, take only the money you have budgeted for and leave your cards at home.
Set good credit habits such as: Always paying off the minimum balance each month and; limiting your credit spending to no more than 20 percent of your net monthly income. If you know you just can't control your credit addiction, lower your limit or use a debit card. It has all the same advantage but you are limited spending the equivalent of what you have in your bank account. If that doesn't work it's time to bite the bullet. Simply cut your card up and avoid having one at all.
2 Buying Lunch Every Day
That 20 Dollars you spend on lunch and coffees every day might seem like no big deal across a week or a month, but it amounts to a fair wad of cash when you look at the damage over a full year. This money would be better placed in a savings account for emergencies or squiireled away for an end of year holiday. So get up 15 minutes earlier in the morning and pack foods like sandwiches, salads, cracker and dip, yoghurt and fruit to take to work. Or maybe it's time to eat detox food.This will benefit your waistline as well as your financial prospect. at the office, keep a mini coffee plunger and tasty ground coffee so that you can start your workday with an enjoyable brew that costs less.
"I used to buy lunch every day at work because I loved having something different and I barely managed to grab a coffee in the morning enroute to the office so there was no way that I had time to make lunch from home," says Angelina, 25. "At the time I'd just moved out of home and had my first proper job and wage so I went a bit berserk, going out heaps and buying lots of clothes. Though it was lots of fun, doing that for three years really set me back, and I ended up with huge credit card debt that I couldn't pay off. Meanwhile, my dreams of buying my own laptop were fading in the distance. At one point I was so broke I had to borrow money from a grlfriend because I got my periods and couldn't afford tampons.
"It was so embarrasing that I vowed then and there to turn my life around. I started going out less and buying clothes at factory outlets. I also started packing lunch and snacks every day. Two years on, I've not only cleared my credit card debt - I've also managed to buy my laptop. Now that I'm used to being frugal I find it easy and I feel more fulfilled than I did when I was spending most of my salary."
3 Smoking
If quitting seems too daunting, start slowly reducing the number of cigarettes you have each day and see your doctor about aids like nicotine gum or patches. Giving up completely will not only save you money every week it will help reduce the chances of smoking - related health problems which could cost you great deal in medical bills down the track.
4 Getting Everything Brand New
Sometimes you can pick up great bargains in secondhand shops, the classified ads of the local pappers or on ebay. So whether you're looking for a new set of bookshelves, a roof rack for your car or a hot pair of 70s boots, check out the secondhand option first. For more general items such as bra and undies sets and bed linen shop around in department stores during the sales period to find the cheapest buys.
5 Hanging Out At The Mall On Weekends
This is a sure-fire way to tempt yourself to spend money on something you don't really need, particulary if you're hanging with friends who will probably want indulge in some shopping therapy with you. To avoid window-shopping and the impulse buying it causes, don't go to shopping malls unless you're there for a specific purpose like getting a new CD or a present for your boyfriend. If you happen to be at the mall and see something you're tempted to splurge on, hold off. Go home, think it over, sleep on it and you'll be suprised how less powerful the urge to buy will be in the morning. By taking your time you're likely to realise you don't really need to buy whatever it was after all.
6 Sending Out
Your fridge is full of wilting vegies because you're always out having brunch at a cafe or ordering pizza for dinner. This could be sucking big bucks from your weekly budget. Instead, aim to eat take-away no more than once or twice a week. Keep ingredients on hand so you can whip up tasty salads and quick melas like tomato tuna with pasta at home - set a roster where you cook one night and your flatmate cooks the next. When you're making something like a chicken soup, do double the amount, then freeze-made meal if you're exhausted when you get home or want a quick bite before you head out.
If you're a die-hard cafeholic, you can still enjoy a coffee fix by your fave barista, but stick to a drink and don't order food as well. Eat lunch or have a healthy snack at work/home/your friend's place, then head to your local coffee haunt for your usual latte or cino.
7 Choosing Designer
This is no problem if your salary can afford it - but that's not the case for most of us. So get into the habit of living beneath your means. To get the ball rolling:
- Find a cheaper lipstick and foundation.
- Wait until the new season clothes mimicking - the latest designer gear comes out at the cheaper stores, then buy the look of the moment.
- At the supermarket, opt for no-frills brands for some items.
- Only ever shop at designer boutiques when they are having sales
If your wallet is bulging with cash it's easier to snap up that bottle of perfume you saw on sale or cheap handbag you chanced on while getting a present for a friend. Encourage yourself to be more discerning, by minimizing the cash you have on hand - you'll be suprised at how much less you spend.
9 Not Practicing DIY Beauty Maintenance
Though it's nice to pamper yourself at a beauty spa or hair salon, it's good idea to get used to doing some beauty routines at home. For starters, invest in a good intensive conditioner to moisturize tresses weekly and buy a manicure set so you can do your nails yourself. Instead of going to a salon for a body treatment - buy a body scrub or mud and turn your bathroom into a day spa for the afternoon.
10 Overspending on Gifts
"I used to blow lots of money buying my friends birthday gifts like expensive clothes or jewellary and because I have a lot of friends that meant I was spending a lot of money," says Alicia, 30. "but then one year on my birthday a girlfriend gave me a great photo collage she'd mad from digital shots of our gang on holidays. It was fantastic and I loved it. It menat so much to me that I realized I didn't have to throw my money around to prove to mates I cared about them. Now when friends have birthdays I choose something simpler like a magazine subscription and a homemade cake or CD compilation I've made through iTunes. Because I've put time into the present, my friends consider it more meaningful."
If you use little imagination you'll soon realize it's easy to downscale the gifts you give and save money. Look for sale items like nice candles or DVDs during the year and put them aside to use as presents. Pick a nice photo of you and your mate and put it in a cheap wooden frame, which you can stain or paint for more effect. If you're really strapped for cash, make your friend a birthday cake, then suggest a girlie night at her place - just being together will make it special.
No comments:
Post a Comment