Spending More Then You Make
If you are finding yourself spending more money then you bring to the table; you are not alone. The American consumer is finding themselves putting out more then they are bringing in, creating a crisis in rising debt with credit card lenders, student loans, and even medical bills. So who’s to blame for the overspending and underperforming crisis in todays economy? Is it the millennials? Or even the cost of inflation which continues to skyrocket? We could all argue this very debatable subject for centuries to come, but what good could that do for our empty wallets… If you are finding yourself in more debt then what your paycheck can pay off, maybe its time to rule out what really is causing our national rise in low credit scores and high debt ratios, and nip it in the bud.
Here are a few tips to help keep your family on a budget that works
Eliminate temptation and practice self control
“We Gain the Strength of the Temptation We Resist”
-Ralph Waldo Emerson 1803-1882
Self control is really the biggest step to control your spending habits, and in order to achieve self control you must have the desire to really want to change. NOBODY CAN CHANGE YOUR HABITS BUT YOURSELF, keep that statement in your back pocket and really make sense of it. This will be your biggest step towards a more frugal future.
Eliminating the temptation to spend on what you can’t afford or really don’t need will be your second hardest step.
Now, because we are a credit restoration company and are really here to help consumers build up their credit score rather then let it fall plummet, I cannot suggest for consumers to “cut up” their plastic cards. If you cannot resist but to max out your credit card each month without the ability to pay it off or even more than the minimum payment, then what I do suggest you do is contact the lender and ask them to lower your credit limit to a more achievable limit. The detriment of closing accounts to your credit score is very real, and you risk losing a lot of points by doing so.
Create a Budget and Spending Plan that Fits with Your Monthly Income
It’s no lie, your bills must come FIRST. Write them down, add them up, and pay them ON TIME EVERY MONTH. We can all agree that our monthly mortgage payment is a quite bit more important then that Gucci wallet, am I right?
Creating a spreadsheet of the due dates and payment amount for all your bills and referring to that specific guide will help give you a general idea of how much your expenses should be each time around. If it helps, do the envelope system. Set aside the cash for each and every bill in an envelope, and create a “vacation” or “new car” or whatever you chose to put the rest of your earnings in to reward yourself. It will be worth it in the end.
If You Can’t Pay Cash Then You Can’t Afford It
First rule of thumb, if you can’t pay cash then you probably can’t afford it at all.
Second rule of thumb, put it down and wait till you can afford it. In fact- create an envelope.
Third rule of thumb, ask yourself if it is actually something you have to have NOW, if not walk away and chances are, you really didn’t need it, and it would probably just collect dust anyways.
Fourth and Final rule of thumb, if you’re still thinking about it…refer to number two.
Spending Less Then You Make
These are just basic guidelines to help the average consumer reduce their debt and break free to financial freedom, and trust me, this WILL take effort, discipline, and time to build. If you are ready to break free of your debts, and pave your own road to success, then by all means own it! Remember, success starts with you and your level of motivation.
If you have questions or would like some advice on building your credit profile please reach out
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