Happy New Year! Have your credit card statements started arriving? Are you afraid to open them because you’re not sure how much you actually spent on your holiday gifts?
We all overspend at times! I want to share with you ten tips for getting control of your money and living within your income.
- Make a personal intentional money spending and saving plan (budget) and stick to it. Track your spending for at least a month (3 months preferred) to find out your true expenses. Include daily and weekly spending, like food and transportation; then consider less-frequent expenses, like taxes. Keep track of everything you spend (cash too) by saving receipts and using a notebook (or app) to track it.
- Think about your financial goals. Do you want to pay down your debt? Pay off your student loans? Save for retirement? Or do you want to save for a down payment on your first home or save for your child’s college education? Identify your most important short- and long-term financial goals, make sure they’re in alignment with your values and create a realistic plan to reach them.
- Pay attention to your financial habits and think of ways to overcome habits that are costing you too much. Do you buy yourself “treats” when you’re feeling bad? Do you spend money to reward yourself? Understand your money blocks. If you don’t know how to overcome these habits on your own, schedule a consultation call with me.
- Cut back to no more than three major credit cards. Cut up cards that don’t offer competitive interest rates or that offer perks you don’t need. Review your subscriptions and unsubscribe from those monthly fees you forgot you signed up for months ago.
- Call your credit card companies and ask for a lower interest rate. Many companies will lower rates to keep your business.
- Always pay your credit card bills on time and if possible pay more than the minimum required payments. This also improves your credit score.
- Shop around for the best TV, internet, and phone rates. Call and ask if current providers can give you lower rates, or bundle your services for a discounted rate.
- Cut back on the number of times you eat out and/or have food delivered each week. Meal prep at the beginning of the week to save you time and money.
- Avoid impulse buys. For an item you “must have,” wait 24 hours before buying it. You may find out that you don’t really have to have it after all. Find other activities that you enjoy and avoid shopping as a form of entertainment.
- Talk openly about finances with your significant other/spouse and family. Talk about your financial goals and come up with ideas together to reduce expenses and increase savings.
If you want to continue this talk, please schedule your free call with me.