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Step 1
Is your Bad Habit living without a Budget?
Living without a budget is like driving with a blind fold on. You can not see where you are going, you do not know where you are and you do not know where to stop.
Break the habit: Set down and list all fixed expenses, such as car payment, mortgage and insurance. Next, estimate all your variable expenses, such as food, gas, phone bills and utilities. You will also need to list the occasional expenses, such as car maintenance, clothing and entertainment.
Add up the total then subtract from your monthly income. You may find that your expense amount oversees your bring home pay. In this case make adjustments starting from the bottom of the list in your spending, until you have meet your budget. Stick with it, this is the only way to break the habit. Every 6 months, sit down a reevaluate your budget, make changes where needed. -
Step 2
Ignoring your Credit Report?
It is estimated that 4 out of 5 credit reports have errors and consumers find 13 million inaccuracies each year, according to Consumer Reports. This inaccurate information on your report could mean you are paying higher interest on a credit card account or higher insurance payments.
Break the Habit: Federal law states that consumers are entitled to one free report each year from TransUnion, Equifax and Experian. Mark on your calendar the first day of March, July and November reminding yourself to request one of your credit reports. This will allow you to have a report every four months. Link at bottom of page for free reports. -
Step 3
Rolling a Credit Card Balance
Credit card companies know that once you cross the threshold of your balance being more than you can pay in a single month, they have you right where they want you, by the throat. When you carry a balance and just pay the minimum amount due, you are rolling a snowball that will quickly get out of control.
Break the Habit: If you can not pay the entire balance in a single month, stop using that card, A.S.P. However, do not close the account, you will be hit with a interest increase. Start paying any extra payments you can and as rapidly as you can. Chart your payments and once the account as a zero balance, make sure you do not fall in the trap again.
Comments
veliou said
on 9/9/2009 We all have to renew our minds if we want to get rid of our bad spending habits..Prioritizing our needs is the best tool and asking our self several questions like "Do I really need this" can also help us in reviewing.Of course habits can be developed gradually.Money and You by Habit Changer gives some best ideas on how to overcome bad spending habits.