How to Break Bad Spending Habits

21199086 - couple, man angry and upset after looking at credit card statement

Just about everyone is guilty of a bad spending habit or two. Some common poor spending behaviors include impulse buying, failing to budget, emotional spending or even accruing ATM transactions fees. Are you wondering how to break your own bad spending habits? All it takes is a little bit of discipline and minor lifestyle changes. The money you’ll save will definitely justify the effort.

Take Small Sums of Cash When You Go Out

If you have lots of cash on you, chances are you’ll feel tempted to spend it. One of the simplest things you can do when aiming to break bad spending habits is to simply leave your money at home. If you’ve planned a shopping session, plan your purchases in advance and only bring along the sum that you can afford to spend. It can be $20 or $200, but what matters is making the decision and sticking to it.

Some people still can’t resist the temptation and they’ll be prone to impulsive purchases. In this case, we recommend taking it a step further and  leave the credit and debit cards at home too!

Track Expenditure

Most people have no idea how much money they’re spending on things they don’t need. It’s a good idea to keep track of expenditure for at least a month; spending records will provide a lot of information of the areas where you can easily cut back. A simple Excel spreadsheet or a notebook can be used. Document all the money that you’ve spent and the things you’ve spent it on – paying loans, utility bills, food purchases, commuting, entertainment, medicines, etc.

Once you record your spending habits for a month, you can set realistic expectations about your fixed expenses (like phone bills or rent) as well as identify the variable expenses that you can cut back on. Capping your spending on entertainment, for example, could lead to profound changes in available cash at the end of the month.

Aim for a Goal

Visualizing a goal each time you feel tempted to spend money can be one of the most effective strategies for breaking bad spending habits. Your financial goal could be paying off your loan, buying a new car or going on a vacation. It doesn’t really matter what you prioritize – just choose something that you’re passionate about and will stay motivated to work towards.

Remember to take small steps first. Attempting to accomplish too much in a single month will simply discourage you from making long-term changes. Pat yourself on the back for each accomplishment and you’ll soon get where you want to be.

Want to know more about how to break bad spending habits? Read up on 4 things you should never pay for.

Navigation
Google+ Twitter Facebook

Niiwin, LLC, d/b/a Lendgreen (“Lendgreen”), is a wholly owned subsidiary of LDF Holdings, LLC, a wholly owned subsidiary of the Lac du Flambeau Business Development Corporation, a wholly owned and operated economic arm and instrumentality of the Lac du Flambeau Band of Lake Superior Chippewa Indians (“Tribe”), a federally recognized Indian tribe. Lendgreen is organized and in good standing under the laws of the Tribe. Lendgreen is a duly licensed Financial Services Licensee of the Lac du Flambeau Tribal Financial Services Regulatory Authority, an independent regulatory body of the Tribe.

All loan application decisions are made at Lendgreen’s office located at 597 Peace Pipe Road, 2nd Floor, Lac du Flambeau, Wisconsin 54538 on the Tribe’s reservation. If your loan application is approved by Lendgreen, your loan will be governed by Tribal law, applicable federal law, and the terms and conditions of your loan agreement.

This is an expensive form of borrowing. Lendgreen loans are designed to assist you in meeting your short term borrowing needs and are not intended to be a long term financial solution. The Annual Percentage Rate (“APR”) as applied to your loan will range from 720% to 795% depending on your payment schedule, pay frequency, loan term, and the amount of your loan. Late payments and non-payment may result in additional fees and collection activities as described in your loan agreement and as allowed by Tribal and applicable federal law. Lendgreen does not lend to residents of AR, GA, MD, MN, NY, PA, VA, WV, WI or to members of the military or their dependents.

© 2018 Lendgreen.com