That spinning bike you have been eyeing for months is finally on sale! Do you jump the gun and get it? But what about your pending debts? You can always catch up with payments next month. See how easy it is to talk yourself into spending? Sticking to it could sometimes prove challenging, even when you are set on paying off your debts. With so many temptations to spend and no one to hold you accountable, it is easy to slip into your old ways and dig a deeper financial hole than the one you are already in. Thankfully, it is not all out of your control. You can still stick to your debt repayment plan with a few tweaks to your spending habits.
3 Tips To Control Your Spending When Reducing Debt
Unnecessary spending can tear up your debt repayment plan when left unchecked. It is easy to convince yourself to stop spending but once you begin taking control of your finances is an uphill battle. Luckily there are strategies you can adopt to curb your spending and focus on repaying your debt. The following are three proven ways to stop unnecessary spending and focus on paying off your debt.
1. Adopt The 48-hour Method
Online shopping has taken the world by storm. Who would have thought thirty years ago buying from your favorite store would only take you less than five minutes on your mobile device? Yes, there is no better convenience, but this is a temptation waiting to take over when trying to get your finances right. To put reins on this problem, apply the 48-hour method whenever you make a purchase you do not need. Start by selecting the items you need and add them to the cart, but do not check them out. Leave the items in the basket for 48 hours, and if you remember you still want them, you can pay for them. However, if you do not, chances are you did not need it in the first place.
2. Visualize Credit Card Spending
The number one reason people rack up a lot of credit card debt is that they do not see they are spending money. With every swipe, you are adding to the credit balance, and come to the end of the month; you are in for a rude financial awakening. To visualize your credit card spending, you can turn on push notifications on your credit cards. It will remind you that you are spending money and will hold you accountable.
3. Skip The Sales
Sales by your favorite stores always sound like a sweet deal until you start falling behind on your debt repayment plan. Just because something is on sale does not mean you should buy it, especially if it is an unplanned purchase. The small purchases you make during a sale tend to add up, so why not set that money aside for something that has value? It can even be directing the money to clear one of your debts. Establish a conscious budget to take control of your money. YNAB is a resourceful tool you can use to plan your expenses and assign your income accordingly.
Conclusion
If you have been stressing about ways how you can cut your spending, these three tips are a great place to start. Once you have better control of your spending, finding extra money to reduce your debt should not be too hard. Implement these into your financial habits and watch your finances come together. You do not have to clear your entire debt; even checking off those small debts on your list is a significant step in paying off debt.