On The Money

Ways to Reduce Your Spending and Increase Your Savings

Saving ConceptThere’s nothing quite as problematic as when you hit rock-bottom. That’s a situation nobody wants to find themselves in.

You can avoid such a difficult situation, however, by keeping your finances and credit in check. If you’ve been spending your money faster than you can earn it, then it’s high time that you take control of your spending habits, particularly if you have plans for the future. Here are some ideas.

Prioritize

Prioritizing the important expenses is the key to knowing how much you can spend and not spend. Before buying anything, set aside the money for your monthly bills. Those are priorities. Increasing the money you save should also be a top priority. For example, if you have plans to buy a house in Salt Lake City, check the mortgage rate in Utah so you can make the necessary adjustments to your priorities.

Avoid Tempting Yourself

You can tell yourself that there’s no harm in “window shopping” at the sneaker store every time you get your paycheck. But if you always end up buying a pair of shoes, there is a problem with your “window shopping”. To avoid this issue, go straight home after work. Don’t visit the stores or meet your friends for a few drinks. You have to reduce your unnecessary expenses.

Pay off Your IOUs

Whatever money you owe, pay it off. Even if you have to talk to your creditor about a payment plan that’s easier for you, what matters is you intend to pay them back. Finish all your loans, pay off your credit card debts and avoid using more than one card. Use it for groceries and other essential expenses. Keeping at least one credit card and not defaulting on payments can help keep your credit score healthy.

Remove Unnecessary Bills

Are you paying for Internet at home and also for a data plan on your phone? Choose which one you can afford to cut. If you spend more time on the road than at home, perhaps you should get rid of your Internet there, and while you’re at it, you might also want to remove your cable. As far as priorities go, you can live without these luxuries.

By following these ideas, and finding more ways to keep your money in the bank, you can avoid going bankrupt. It’s OK to be strict with your spending; at least in the future, you can afford what you want, like that house in Salt Lake City.