Re-evaluating your finances, whether you’re a business, author, or someone else.
We all work hard, put in long hours and spend a huge proportion of our lives in the workplace. If we’re being honest, we’d rather be anywhere else.
So come payday, most of us feel like we’re deserving of a treat. We like to spend a little money on ourselves and the things we enjoy. There’s nothing wrong with this, and we work to live and maintain a certain kind of lifestyle.
However problems arise when you’re constantly overspending, living above your means and perhaps treating yourself too often in too large amounts. This can result in important bills being missed and arrears racking up, and credit being taken out. In time you can end up in a real pickle due to your finances.
If this sounds like you, it’s important to put a stop to things sooner rather than later. If you’re a certified big spender without the budget to do so, here are some things you could try.
Create a Budget
First things first, everyone should have a budget.
Whether you’re an individual or a family, whether you earn a little or a lot. You need to be in control of your money, and know exactly what comes in and what goes out.
These days you can get budgeting software that’s complete with desktop invoice software, integrated calendars and much more. This means you always know what needs to be paid and what’s left at any time during the month. Once you know what needs to be paid and when, you can prioritise your main bills and know exactly how much you have left over which is yours to spend.
Cut Up Your Credit Cards
There’s a time and a place for loans and credit cards. They can help you to improve your credit score. This will therefore improve your chance of being approved for important kinds of credit such as for a car or a mortgage. They can allow you to purchase an item that would take you a long time to save for and spread the cost.
However it’s easy to abuse them. It’s so easy to see your lines of credit as money that’s yours to spend, and issues occur when high interest accumulates and you can no longer afford to make even the minimum payment.
If you know you can’t trust yourself with your spending, then cut up your cards. Pay them back, and close the accounts. Unless it’s an incredibly worthwhile investment (perhaps money for education, for health reasons or to start a well-researched business) you’re better off just saving.
Write a Wish-list
When you’re whizzing around the shops on payday, everything looks appealing.
Chances are you’re hooked by offers and promotions and make lots of impulse purchases of things you didn’t even need. One way to get around this is to write a list of the things you want. Don’t allow yourself to buy anything on the list for two weeks. If you still want it after this time then go for it. But chances are, you’ve forgotten about the item by then and it’s not as important as you once thought.
This helps you to make sure you’re spending your money on things you actually need and want.