They say that money makes the world go round, and they are not wrong. In fact, it often feels like you have to spend money to get anywhere in this life. But what happens when you spending spirals out of control? Well, you have to stop and take stock of where all that money is going and work out how you can spend in a much more sensible way. Read on for some more advice.
Cash or card
There are several tricks that you can do to keep onto of your spending. Some people get out there spending money allowance for the week in cash, and then when it’s gone, it’s gone. They don’t allow themselves anymore until the start of the next week.
However, for some people, cash can create a problem. As all that loose change in your wallet seems like nothing, when it actually adds up to a significant amount of money. It can be really easily to spend it on little inconsequential things and before your know it… poof! It’s all gone! So it is better for people like this to empty out their wallets, whenever they get home into a change savings jar!
Is a loan a good idea?
It might seem like when you’re trying to keep a hold on your spending, a loan isn’t the best of ideas. But this isn’t always the case. In fact, a loan can often help you out of a sticky situation that could end up costing you more money in the long run.
For example, you may need to secure a loan if your car breaks down. Then you can get it fixed properly by a reputable dealer, so it won’t break on you again, a few weeks down the line.
Another factor you should consider when getting a loan is the type you are applying for. You can choose from bank loans, secured personal loans or instant payday loans. Always read the fine print to ensure you know which one is best for your situation.
Ultimately a loan must be paid back and it can get expensive so if you do decide this route, go in with your eyes open about the cost.
Make it relevant
One thing about getting a grip on your spending is that it can be easy to get off track. It can start with just little things like an extra bag of sweet while you are doing the shopping. Or stopping off at your local coffee shop to commiserate yourself with a frappuccino, because you have had a bad day. Then bam! Before you know it you’re back into your old spending ways again, and you are getting further and further away from your financial goals.
A great way to minimise this risk is to make why you are getting your spending under control relevant to you. Maybe you are doing it so you can save for a house? Maybe you want to set a good example for your kids when they go to university? Whatever the reason grab a picture that symbolizes this to you and put it in your wallet. Then every time you are tempted to overspend, look at the picture first. This should help you keep your resolve.
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