The toughest part of living within one’s means is the credit habit. We, as a society, have made it extremely easy to borrow money. We issue credit cards, seemingly without regard to the ability of the recipient to pay the balance; we sell cars to almost anyone who can drive; and we allow almost anyone to go buy a computer or television with nothing down. It’s easy to get up in the morning and go buy something, whether you need it or not; regardless of whether you can afford it!
Breaking the habit of using credit is tough. It’s easy to just use a credit card or fill out a credit application for almost any and all purchases. And you don’t have to stop at the bank for cash before you go shopping; or even check your bank account balance. Just put it on the card, and worry about it later.
So, how do you break that habit? Here are my 5 tips:
1. Don’t leave the house to “go shopping” without a list of exactly what you want (need) to buy. It is impulse buying that really runs up your credit card. Make sure you don’t succumb.
2. Plan on using cash whenever you can. Even putting a morning cup of coffee on your credit card adds up quickly.
3. Check your bank balance before buying anything. This includes groceries and extravagances. Knowing whether you can afford something will allow you to avoid those things that just go on the credit card to be paid later.
4. Don’t purchase anything requiring monthly payments unless your budget shows that you can afford to make the payment each and every month without using credit.
5. Leave your credit card in the car. It will be there if you need gas or in the event of an emergency, but won’t be readily available to use instead of cash.
Simply getting out of the habit of “just charging it” will do wonders for your budget at the end of the month.
photo credit: Pixilbliss
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Make list! the most important even to go to the supermarket