Personal Spending Tips To Avoid Busting Your Budget
America has a spending problem.
Between 2015 and 2029, It’s estimated that consumer credit card balances in the U.S. will double from $72 billion to a whopping $143 billion. The average American household is saddled with an average of nearly $9,000 in credit card debt.
So, what can you do to curtail your spending a little (or a lot)? Here are a few easy personal spending tips to start implementing right now.
Spending Tips To Help Keep Your Budget On Track
Set Financial Goals
Are you planning for retirement? Need to buy a new car? Saving up for a dream vacation? Setting short and long-term goals can help keep your spending in check. It’s harder to splurge when you have an important goal in mind.
Track Your Spending
Having a budget is vital to money management, but to manage your spending effectively you’ll need to track it every month.
Your budget should have a list of fixed expenses, such as typical monthly bills (mortgage, car payments), and expenses that vary each month (entertainment, groceries).
Variable expenses are a good place to find ways to cut back on spending or see if you’re spending far too much on certain things every month.
There’s An App For That
If you have a large number of expenses every month or have a history of budgeting difficulty, one of the top personal spending tips is to take advantage of one of the many apps designed to help people track expenses easily and maintain a budget.
Apps such as Mint let you create a record of your spending, and many let you automate savings. Some even log your expenditures for you.
Try The 50/30/20 Approach
Tracking your spending can be difficult but using the 50/30/20 budget technique makes tracking a breeze. It’s one of the most popular of all personal spending tips among financial advisers.
With this approach, you’ll be spending 50% of your income on “needs,” including food, rent, and utilities. You’ll spend 30% on “wants” such as vacations and shopping. Then the remaining 20% goes into savings or to pay down your credit card debt or other forms of debt that are busting your budget.
Focus On Necessities Only
All those “wants” are pretty tempting, but if you’re struggling with your spending and your financial goals keep getting further away, the best course could be cutting all of your spending down to just your “needs” for a few months.
It’s also helpful as a way to increase your savings or establish an emergency fund.
Just Use Cash
Credit cards are a convenience, but often they can be a curse. They also lead to overspending, especially if you’re not tracking your purchases. Instead of using your credit card every time you pay, try using only cash for a few weeks.
Take out a certain amount of cash based on your “needs” and also include a spending offer for emergencies (or a “want” reward). Once you’re out of cash, your spending is done for the week or month.
Adjust Your Spending Habits
Every little bit counts when you’re trying to stay on budget. The first step is taking a hard look at what you’re spending the most on and if there are ways to cut back. The good news is that there usually are.
If you go out every week, commit to eating out just once a month. If you are spending too much on clothing, wait to purchase items when they go on sale. Try using generic brands at the grocery store while also using coupons or cash-back apps.
Consider A Payday Loan When Facing A Financial Emergency
A financial emergency can strike at any time, and it can be particularly difficult to deal with when you’re following a strict budget.
If you’re coping with a hefty emergency room bill or figuring out how to pay for vital home and car repairs, a payday loan from Alabama Title Loans, Inc. may offer the assistance you need.
Payday loans are short-term loans offering relatively small amounts of money to help those who need to cover an expense.
At Alabama Title Loans, Inc. a payday loan between $100 and $500 is available. The process is also very quick, as little as 30 minutes.
Simply complete the payday loan inquiry form and we’ll call you to discuss the few required items and guide you through the loan process.
Once you qualify and are approved for your loan, you get the money you need the same day or the very next business day.
One of the best personal spending tips is to get help with a financial emergency that threatens your livelihood. A payday loan may be the relief you’re looking for. Just start online, give us a call, or visit one of our locations near you today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.