Difference between revisions of "Break Bad Spending Habits"
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#Reduce the amount you spend on clothing. You can certainly look good without stopping into a store every week to buy something new. Go through your closet and find clothes in good repair. Then organize a clothes swap with your friends. | #Reduce the amount you spend on clothing. You can certainly look good without stopping into a store every week to buy something new. Go through your closet and find clothes in good repair. Then organize a clothes swap with your friends. | ||
#*If you need to buy something new, shop at thrift and consignment stores to save money. | #*If you need to buy something new, shop at thrift and consignment stores to save money. | ||
| − | #Stop eating out. Everyone needs to eat, so you can’t reduce food expenses entirely. However, you can save by cooking more at home instead of eating out at restaurants. Save extra money by buying generic label products and clipping coupons.< | + | #Stop eating out. Everyone needs to eat, so you can’t reduce food expenses entirely. However, you can save by cooking more at home instead of eating out at restaurants. Save extra money by buying generic label products and clipping coupons.<ref name="rf1">http://www.thesimpledollar.com/21-ways-to-reduce-your-spending-without-making-your-life-miserable/</ref> |
#*Learn to cook at home by buying a cookbook. There are also recipes for many 15-minute meals online that you can easily find. | #*Learn to cook at home by buying a cookbook. There are also recipes for many 15-minute meals online that you can easily find. | ||
#*If you want to entertain, then throw a potluck and ask every guest to bring one small dish. | #*If you want to entertain, then throw a potluck and ask every guest to bring one small dish. | ||
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#*Listen to music for free over the radio instead of buying CDs or downloading songs. | #*Listen to music for free over the radio instead of buying CDs or downloading songs. | ||
#Put the phone away. Many people who shop online do so when they are waiting in line at a business.<ref name="rf3">https://www.everydollar.com/blog/create-better-spending-habits</ref> To save money, turn your phone off when you go shopping or leave it in the car. | #Put the phone away. Many people who shop online do so when they are waiting in line at a business.<ref name="rf3">https://www.everydollar.com/blog/create-better-spending-habits</ref> To save money, turn your phone off when you go shopping or leave it in the car. | ||
| − | #Wait before you buy. One bad habit is the impulse buy. You see something you must have, and you immediately charge it to your credit card without thinking. Break this habit by practicing patience. Wait at least 24 hours before you buy something.< | + | #Wait before you buy. One bad habit is the impulse buy. You see something you must have, and you immediately charge it to your credit card without thinking. Break this habit by practicing patience. Wait at least 24 hours before you buy something.<ref name="rf2">https://www.everydollar.com/blog/create-better-spending-habits</ref> |
#*Often, you are buying because you are emotionally unhappy at that moment. After a good night’s sleep, you will be in a better mood and probably not want the item in the morning. | #*Often, you are buying because you are emotionally unhappy at that moment. After a good night’s sleep, you will be in a better mood and probably not want the item in the morning. | ||
#*If you still buy, then extend the waiting period—48 hours, 72 hours, etc. | #*If you still buy, then extend the waiting period—48 hours, 72 hours, etc. | ||
===Taking a Financial Fast=== | ===Taking a Financial Fast=== | ||
#Put away your credit cards. During the fast, you use only cash. Hide your credit and debit cards or freeze them in ice so you can’t access them easily. Instead, take out cash from your check or savings account to spend. | #Put away your credit cards. During the fast, you use only cash. Hide your credit and debit cards or freeze them in ice so you can’t access them easily. Instead, take out cash from your check or savings account to spend. | ||
| − | #*By paying with cash, you’ll become more aware of what you are spending.< | + | #*By paying with cash, you’ll become more aware of what you are spending.<ref name="rf3">http://www.moneycrashers.com/financial-fast-improve-spending-habits/</ref> You might not really know how much you spend on a morning coffee or a magazine during your lunch break, especially if you pay with credit. |
#*When you get come, put your coins in a jar. You might need that change before the fast is over. | #*When you get come, put your coins in a jar. You might need that change before the fast is over. | ||
#Identify your necessities. During the fast, you will commit to buying only necessities with cash. Generally, necessities will include your food, housing, medication, and transportation.<ref name="rf4">http://www.moneycrashers.com/financial-fast-improve-spending-habits/</ref> | #Identify your necessities. During the fast, you will commit to buying only necessities with cash. Generally, necessities will include your food, housing, medication, and transportation.<ref name="rf4">http://www.moneycrashers.com/financial-fast-improve-spending-habits/</ref> | ||
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#*Instead of using payday lenders, you should open a checking account. Visit a local bank or credit union. | #*Instead of using payday lenders, you should open a checking account. Visit a local bank or credit union. | ||
#*If you can’t get a checking account, try to cash your check at the bank that issued the check. | #*If you can’t get a checking account, try to cash your check at the bank that issued the check. | ||
| − | #Avoid touching your retirement account. When you’re short on money, do you take funds out of your retirement savings? Many people do, and you need to break this bad habit.< | + | #Avoid touching your retirement account. When you’re short on money, do you take funds out of your retirement savings? Many people do, and you need to break this bad habit.<ref name="rf4">http://blog.credit.com/2015/03/5-bad-money-habits-you-can-break-today-111081/</ref> Your retirement savings are for retirement, not current expenses. |
#*Break this habit by building an emergency savings fund. Try to save up to six months of expenses. Once you meet that goal, save up for 12 months of expenses. You can tap your emergency fund when your car breaks down or you lose your job. | #*Break this habit by building an emergency savings fund. Try to save up to six months of expenses. Once you meet that goal, save up for 12 months of expenses. You can tap your emergency fund when your car breaks down or you lose your job. | ||
#*Start small, by putting aside whatever you can afford, such as $5 a pay period. After a couple months, try to increase your contribution to $10 a pay period. Use direct deposit so you never touch the money.<ref name="rf8">https://www.nerdwallet.com/blog/finance/9-financial-bad-habits-stop-money-problems/</ref> | #*Start small, by putting aside whatever you can afford, such as $5 a pay period. After a couple months, try to increase your contribution to $10 a pay period. Use direct deposit so you never touch the money.<ref name="rf8">https://www.nerdwallet.com/blog/finance/9-financial-bad-habits-stop-money-problems/</ref> | ||
#Remember wealth doesn’t bring happiness.<ref name="rf8" /> Being poor reduces well-being, but once you take care of necessities like food and shelter, money no longer increases happiness. | #Remember wealth doesn’t bring happiness.<ref name="rf8" /> Being poor reduces well-being, but once you take care of necessities like food and shelter, money no longer increases happiness. | ||
#*Popular culture is full of images of happy, wealthy people. You rarely see a working-class or even middle-class person anymore. Turn off the TV and cancel your magazine subscriptions so that you aren’t seduced into equating wealth with happiness. | #*Popular culture is full of images of happy, wealthy people. You rarely see a working-class or even middle-class person anymore. Turn off the TV and cancel your magazine subscriptions so that you aren’t seduced into equating wealth with happiness. | ||
| − | #Work a part-time job. After you break your bad spending habits, commit to saving more money. Wake up earlier in the morning and use the free time to earn money by writing blogs or walking your neighbor’s dog around the block.<ref | + | #Work a part-time job. After you break your bad spending habits, commit to saving more money. Wake up earlier in the morning and use the free time to earn money by writing blogs or walking your neighbor’s dog around the block.<ref name="rf4" /> |
==Sources and Citations== | ==Sources and Citations== | ||
{{reflist}} | {{reflist}} | ||
{{WikiHow}} | {{WikiHow}} | ||
