In my last blog post I talked about being on a debt free journey. Since December I have been listening to Dave Ramsey, the financial guru. It was not until January I started to put my plan into action. I was tired of being in debt and a slave to the lender as Dave would say. I started to change my behavior on how I dealt with money.
So here are some tips to help you change your bad money habits
100 percent of how you handle your money is behavior. You must change your thinking and behavior on how you handle money. Ask yourself some questions about your money. Do you know your average monthly income? Do you know what your living expenses add up to each month? If you answered no to these questions, it’s time to do a budget.
Having a budget can make a world of difference. Start by writing down your take-home pay then write all your bills down for the month. By doing this, you will know exactly what is coming in and going out. I use the everydollar budget app by Dave Ramsey. To start using the budget app click here
Separate Your Money
Have a separate bank account for your checking and your savings. Some people do better when they can’t see what’s in their savings account. You are less likely to touch your savings if you limit your access.
Cash is King
Use cash for all your daily purchases. When using cash, you are more aware of what you are spending. When we have a debit card in hand, we tend to slide it and don’t think twice. If you are a person that doesn’t like to carry cash, try using a pre-paid card. This way you can put a limit on the card, and when it’s gone, you know you have reached your limit.
Stop using credit cards and Stop borrowing money
STOP using credit cards and STOP borrowing money. How can you get out of debt and you’re still using a credit card? It makes no sense. We have to really separate our needs from our wants. Save up for the things you really want. Why pay interest on a purchase when you can pay cash for it?
As you get older, it’s time to get smart about your money. Pay off your debt and become debt free. Wouldn’t it feel good not to pay a credit card, car note, or student loan again?
Are you ready to take control of your finances?
Start changing your bad money habits by reading "The Total Money Makeover".