It’s only a few months before the holidays come rolling. There are a few months left to save up for your New Year’s Eve outfit or the latest iPhone release. Your time to settle your mortgage is almost out. It’s stressful thinking about the all the bills you have to pay.
At the same time, anything you do only ends up eating what’s left of your income. Sometimes, the problem isn’t with what you earn. It’s with how you spend your money. When you give in to the temptation of in the stores near your Arbor Lanes condo, you lose the money you mean to save. If you want to save and end with cash to have a Merry Christmas, then you should stop doing these things.
1. Taking a loan for something you do not need
If you don’t have the means to pay for a loan, then you shouldn’t apply for one. Monthly payments can eat up your savings especially when you’re running out of cash to cover it. Think twice before you get to enter a binding financial responsibility.
2. Go on an expensive vacation
It’s not wise to spend your entire savings on vacation. Think of the things you need to settle first before you go all out. Someone in the family might get sick, you still have a bill to pay, or your home needs a repair. Don’t go all in something that doesn’t pay you back.
3. Offer your money to someone else or cosign for them
Lending money to someone else doesn’t guarantee they’ll pay you back. Moreover, you can’t offer them something you don’t have. Don’t get a loan, so you can lend your friend money. At the same time, don’t make the promise of lending when you don’t have enough for yourself.
You should also avoid cosigning for a loan. Banks will charge you if the signer can’t vouch for the monthly payment.
4. Spend on trivial things
As much as possible, spend your money on things you need to survive. Try not shop for stuff you’ll only use once. Also, you shouldn’t always abide by the trends. These things come and go. The next thing you’ll know, the clothes you bought on impulse are no longer in fashion.
5. Eat out
Get your groceries weekly and prepare meals at home. Eat your leftovers. Learn how to cook so you won’t have to pay for gas, service charges, and tips that you would have when you eat at restaurants.
6. Subscribe to cable
You can catch a lot of shows on local channels. The rise of Netflix and other online streaming sites makes possible to see movies anywhere. You should take advantage of your local channels and Internet subscription to catch the latest shows.
7. Go to parties and clubs
You should find new ways to entertain yourself. Partying every Friday night doesn’t only burn a hole in your pocket. It also damages your health. Think of the long-term effects of binge drinking, staying up late and smoking whenever you have the urge to have a night out. If that doesn’t change your mind, then consider the entrance fee and overpriced cocktails. That might do the trick.
8. Pay more than the minimum on credit card payments
Even if you can afford it, you shouldn’t pour all your income to pay off your credit card balance. You won’t have anything left if you do. You should only take on the minimum and allocate your resources equally to other financial obligations.
9. Move into an expensive apartment
Living in Arca South is comfortable, but it isn’t the wisest move when you need to be practical. When you’re at the onset of your career or starting to establish yourself, you should pick a living space that is within your means. You shouldn’t get a high-end apartment when it’s almost half of your salary. Learn to be satisfied with what you can afford and trade up when you have enough.
10. Neglect bills and bank statements
Ignoring your bills and expenses won’t make them go away. You’re only piling up your interest rates and extra charges when you do. Pay attention to your bank statements and bills. That way, they won’t pile up.
11. Settle payments past the due date
If you don’t want to incur extra fees, then you should face your problems. Open your mailbox and see if your bills and statements are in. Don’t wait until you receive a disconnection notice or eviction before you pay for everything.
12. Pretend you have more money than you have
It’s nice to live in a fantasy, but it can strike you in the face when you aren’t real with yourself. Don’t think that you have more money in your wallet than you currently have. Living in an illusion is a recipe for overspending.
These are the things you should avoid so you can have enough money for a joyful holiday. It’s not a nice feeling to live under the grace of your parents or friends. It’s time you be an adult and be responsible for your spending habits.