Financial freedom is not something that you can immediately have. It takes a lot of work and you will realize that you have to change a lot of habits. One of the habits that you have to learn to control is your spending behavior. Irresponsible purchases make up a huge percentage of the debt that we currently have. It grows at an alarming rate especially since most of them are paid for by credit cards.
One of the top three type of debts is acquired through these cards and they are the hardest to get out of. Naturally, a lot of people would want to eliminate credit card debt from their lives permanently. But in truth, you don’t really have to completely get rid of your plastic cards just to get rid of debt. In truth, it all boils down to your spending habits. So if you do something about this, you may be able to find a permanent solution to your credit obligations.
Here are some habits that could help you improve your spending behavior.
First of all, stay away from impulsive buying. Think before every purchase because a lot times, they are fueled by hype instead of a real need. When you see an advertisement on the television or if all your friends have them, you develop the urge to buy one for yourself. Wait at least three days to a month before you buy anything. If it is expensive, spend 30 days to think about it to make sure that your need for that purchase is really necessary.
Sometimes, making regular clean ups of your home will help eliminate these unnecessary cravings. When you realize what you had buried in your closet, you lose interest in that expensive designer jeans you found at the mall. Not only will cleaning up help you think about what you want to buy, it also allows you to declutter and get rid of the things that you do not need. And if they are still in good condition, you may even be able to sell them and earn extra money for your debt payments.
Another tip that you should apply while spending is to shop around. Never settle for the first store you visit because most of the time, there is a better offer elsewhere. Although it is important to make price comparisons, you should also be careful to choose a reliable brand or company. Apart from the cost, consider how long you will use a product. These are the factors that will tell you if it is worth the value you are paying for it.
Ultimately, the best way to control your spending is to buy everything in cash. But if you really have to use your credit card, make sure you have the money to pay the bill in full during the grace period. This is the period between your date of purchase and the time when the interest rate will be added to the balance.