How To Deal With Your Wild Spending Habits
Have you ever felt as though you are out of control when it comes to your spending habits? Perhaps you make a decent amount of money, but you constantly spend it on trivial things that, when you think about it, you don’t really need. Or perhaps your income is not so high, and you know you need to reel in your spending, but you want to have nice things, so you keep buying them. This will leave you with no money to put into savings and no money for emergencies.
If this sounds like you, it’s clear that you need to take control of your spending and ensure that you get back on track. With that in mind, here are some ways to deal with your wild spending habits.
Refinance
In some cases, the best thing you can do when you know you’re spending too much is to refinance. When you look at refinance loans from Sachem Lending, for example, you will see that you can consolidate any debt you have into one payment. This will make that debt easier to pay, and it will give you more money in your pocket each month.
Of course, doing this doesn’t mean you suddenly have more money to spend – you need to use that money carefully and wisely. Ensure that you save it or use it where you really need it. This is a good first step. Beyond this, there will be other things you have to do.
Keep Track Of Your Expenses
Sometimes you know you’re spending a lot of money, but you can’t quite work out where that money is going. This is why it’s worth taking the time to track your expenses. Pay careful attention to all your outgoings for a whole month and note down the different things you are paying for. There will be different categories, some of which are necessary, like your accommodation, food, utilities, and any debt repayments. Others will be unnecessary, such as anything you buy online that isn’t urgently required and having multiple TV subscriptions. These aren’t essential.
It might surprise you to see just how much you’re spending on things you don’t really need. If you start by quitting your online shopping habit, you’ll immediately save money. Cut out anything else that isn’t needed, and you’ll soon be back on track.
Consider The 70 Percent Rule
The 70 percent rule is a great one to live by, although it can be hard to get to a point where you are able to do it. That’s not the same as impossible, though, so it’s definitely something you should do, as it’s sure to help.
This rule states that you should live on 70 percent of your income, whatever that might be. With regards to the rest of your money, ten percent should be for savings, ten percent should be for a retirement fund, and the last ten percent should be set aside for emergencies. In this way, you are ready for anything, and you don’t have to worry about your money. If you can’t live on 70 percent, you either need to cut costs or get a better paying job.
