Tired of Borrowing? Here Are 5 Ways to Make It Stop
Debt is a stressful burden, no matter how little of it you may have. None of us like owing money to other people, but many borrow time and time again. If you're tired of that never ending cycle, there are a few steps you can take to get out of it. With the help of proper money management techniques, you could get back on your feet for good. Here are five ways to stop your borrowing habits.
1 Turn Your Savings into a Bill
If you feel incapable of saving money, it's probably because you don't prioritize it like you do your bills. You plan to save whenever it's possible or convenient, but that time never comes along. Instead of pushing your saving to the side, turn that into something you have to do every week. Even $10 a paycheck will add up over time.
2 Don't Live above Your Means
Before you get a new car, a new house, etc., think about what you can logically afford. If you are already stretching your income now, there is no sense in putting a bigger strain on yourself. If you have to borrow money for something like that, consider how much you can pay per month – not how much you can be approved for. Always think practically about your capabilities.
3 Put Yourself on a Budget
If you don't have a budget to work with, you are never going to be in control of your finances. You have to set a limit to the money you can spend on food, fuel, clothing, etc. That way you have to conscientiously think about every burger you get at McDonald's or pair of shoes you see in a store window. If there's no room in the budget, don't get it.
4 Don't Rely on Payday Loans or Credit Cards
While payday loans and credit cards are great options to get you out of the hole, they also put you into a new one. Don't take out a loan or charge a credit card if you can't pay the money back quickly. Making minimum credit card payments will cause you to take years to pay back a simple debt, and doing so with a payday loan will lead to outrageous money in interest. Only borrow what you know you can return.
5 Learn to Live Without
You can't always get the fancy car you want or the expensive phone all your friends have. You may have to make financial sacrifices in order to survive. It is better to have a house, food, and a mode of transportation than it is to live in a debt-filled fantasy world. Prioritize your spending, and think carefully about your needs versus wants. If something you want will prevent you from getting something you need, you have to rethink your purchases.
If you're truly tired of borrowing, take action now. Unplug electrical devices you don't use to save money on energy. Take the bus to work to save on gas. You can cut corners all over your budget if you know what to look for.