Tip #43: Get out of the spending
habit
We are surrounded with advertisements that tell us to buy,
buy, buy. When we want to read a book, we buy it.
When we want to go somewhere, we take a cab or drive rather
than walking.
Stopping spending consciously can be hard, but heading to
your local library, walking instead of taking a car, buying a
used computer instead of a new one - all can help you spend
less and save more. There are several ways you can save money
and pay off your debts faster by spending less:
1) When you head out, carry a small amount of cash with you
and leave your credit cards at home. That way, you will
not be able to overspend.
2) Stop catalogs from arriving at your house or discard them
unread - advertisements and catalogues encourage you to spend
and buy when you don’t need to.
3) Do it yourself. Eat in rather than dining out.
Dining at restaurants or getting food delivered is always more
expensive than doing your own cooking. Also, do your own taxes
rather than farming the job out to someone else. Wash
your own car, run your own errands, mow your own lawn.
When you do something yourself, you spend less.
4) Watch less television. It sounds strange, but
television can make you overspend - television contains many
professionally-created advertisements pushing us to spend and
spend. These ads are so well done that not spending after
watching them is sometimes very difficult (just what
advertisers want!). Switching off your television can
help you avoid temptation.
5) Make do or do without. While you are repairing your
credit, channel all your extra money into paying off debts and
reestablishing good credit. Make so with what you have
and avoid shopping as much as possible.
6) Buy discount or used. Whether it is furniture or
shoes, you can save money by refusing to pay retail price.
Saving your money by spending less can let you pay off your
debts faster, something that can improve your credit score
dramatically.
Tip #44: Save Money
One of the best ways to ensure that your credit rating stays
good is to save money each month. Whether you are able to
save $25 a month or $200 or even more, saving and investing
your savings will prepare you for financial emergencies, will
get you out of overspending, and will allow you to build
investments that can help you in later years.
With savings at your bank, you don’t have to worry that
sudden illness will make you unable to pay your bills,
resulting in dings on your credit.
Saving ten percent of your income is a nice, reasonable
goal. You can use your invested savings to make certain that
your debts never get overwhelming. Most employers and
banks will even deduct a certain amount of money from your
paycheck or account each month to be put into
investments.
This can be a very convenient way to save, as you are
unlikely to miss or spend money you have taken out before you
can get your hands on it.
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