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17Jan2018

How to Break Bad Spending Habits

The New Year is just about upon us, and that means that it’s time to make a resolution for next year. You could go with the usual trite promises that you won’t keep a week later, or you could make a promise to yourself that’s genuine, and will actually improve your lot in life. Why not promise to break your bad spending habits?

We’ve all got bad money management issues, and the new year is a great time to break them. It might seem overwhelming at first, but the steps to take are pretty easy when you start. Learn these straightforward, simple and logical ways for how to break bad spending habits, and where to go for help fixing those cash problems.

How to Break Bad Spending Habits

If you want to break bad spending habits, it pays to start small with baby steps, and then build upon that success. We form habits over time, often without thinking about it, but it’s also possible to build good habits consciously with repeat actions. Just put some commitment and work into it, and you’ll be amazed at the results.

Set Goals and Stick With Them

The first step is to be realistic about what you want to achieve. Set the right goals, and stick with them. Make those goals small and achievable. Every tiny goal you meet will feel like an accomplishment. Going too big, however, will only set you up for failure, so keep it manageable, even if it takes longer.

Change Your Outlook

This may be the toughest part. Change the way you think about money. This is especially true if there’s a specific vice you want to fix. That $5.00 per day you spend on fancy coffee might be a luxury you really enjoy, but downsizing means understanding those luxuries might just be bad for you. Switch to the less expensive drinks that are more healthy, or forego that fancy beverage altogether.

Change Your Spending Habits

Again, this is best done in small steps, but the major thing you can do is simply switch back to cash. Stop using your debit or credit cards to pay for things. If you don’t have the cash, you can’t get to an ATM, and it’s not a legitimate emergency, simply don’t make the purchase. You’ll be amazed at how fast you rack up funds!

Get Back to Tracking

You may not be old enough to remember the days when people balanced checkbooks, but the truth is, it was a solid means of managing finances. Start tracking every expenditure you make. Keep a notebook and do it by hand—that will really keep you accountable. But even still, you can just as easily set up a spreadsheet on your phone to do it. Tracking your expenses will let you see your progress, and will keep you accountable.

Consolidate Your Debts

If you’re making too many small payments that are all adding up every month, taking out a debt consolidation loan can be a great way to save money in the long run. You’ll be making one single payment on a balance that will pay down over time, and will total less than your other payments combined.

For more information on how a loan might be able to help you, contact Koster’s Finance today!

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