5 Tips for Breaking your Bad Spending Habits

by Fox Symes on February 28, 2013

Bad spending habits can become quite costly if not handled quickly and efficiently. Depending on what your bad habits entail, this could eventually lead to excess debt which may spiral to an amount that is unmanageable. Everyone has bad spending habits. These may include purchases which are made consistently, which you may deem as unnecessary, such as buying excess coffee throughout a standard work day. Or this may include some form of impulse buying, an addiction to buy the latest fashion trends. Taking into consideration the size and consistency of your bad sending habits, ask yourself the fundamental questions, ‘how much could I be saving?’ and ‘how do I go about breaking these bad spending habits, in order to save more?’

Speak to the Professionals

Once you have determined you have countless bad spending habits and are concerned that you have increasing debt, you should strongly consider contacting the professionals to discuss your options, such as Fox Symes, as they will be able to offer you alternative solutions and give you an indication of a variety of outcomes.

Begin Budgeting

Budgeting is such a common method to help manage your personal finances. Some people may overlook just how effective it is. By setting a personal or household budget, you will be able to determine your weekly and primary expenses that must be prioritised. Once they are paid and out of the way, you have determined your discretionary income in which should be carefully evaluated. Here you have the money to spend on your favourable purchases. However, you are trying to break these bad spending habits. Therefore you should consider what you want to do with your discretionary income.

Open an Interest Earning Savings Account

Now that you have determined how much money you have after your primary expenses, you must consider what to do with it. Generally this is where you go about your day and make all these excess coffee purchases or pick up the latest fashion garments. You must inherit some strong-will and avoid these addictions. You will then be able allocate a specific amount to an interest savings account with your local lending institution. You will be able to watch the interest build each month as you continuously add additional amounts. After a 12 month period, you’ll be surprised just how much you have saved.

Set SMART Goals

If you are determined to overcome these bad spending habits, you should set SMART goals for each individual habit to help diminish them. These may include simply setting budgets and saving extra cash each month. Regardless, each goal should be reached over a suitable time span.

Achieve Great Results and Reward Yourself

If you have managed to overcome your bad spending habits (or some of them) and have gone about the correct methods in doing so, have saved money and achieved your goals, you should be proud of yourself. From here on you should continue these methods and be sure to reward yourself with that sizeable purchase you may have always wanted but couldn’t afford. This doesn’t prompt you to fall back into your bad spending habits though. However once you have realised just how much you have saved, you should reward yourself to some extent for the effort. A reward may include allocating money to your excess debts or consolidated loans.

Saving money and overcoming bad spending habits isn’t easy. Everyone is different and has different problems, however these tips should get you on track with minimising poor financial choices.

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