subject: How To Limit Your Spending Habits For Good - Part 2 [print this page] How To Limit Your Spending Habits For Good - Part 2
1. Credit cards are not to be used for sales, new clothes, parties, night about town, or any unplanned event. You will only struggle financially the next month.
2. Clear small debts within 2 or 3 months to avoid paying too much interest. Generally divide the amount into equal installments for each month, e.g. 1500 into 3 is 500 per month or 750 over 2 months.
3. Avoid emotional or pick-me-up shopping at all cost. We all know the saying 'when the going gets tough, the tough goes shopping!'. But how much did we regret this afterwards? You cannot solve one problem with another.
4. Stop trying to keep up with the Jones' way of life or even the latest technology trends, unless you have unlimited cash to maintain your buying lifestyle. Chances are good that the Jones are also living beyond their means of income.
5. Buying on credit is like buying with easy, free money that you don't have. If it's free it's usually too good to be true. Notice how credit card companies will pursue you with all they have just to give you credit that 'you deserve'. Just because you pay your accounts on time every month does not mean that you deserve more credit. Avoid this debt trap!
6. Remember: the more credit cards you own, the more debt you own. Keep only 1 card and only use it for emergencies. I used to have 2 credit cards and maxed them out within 3 months (both cards!), believing the lie that I had so much money to spend. I could not maintain their monthly repayments because I was still earning the same wage amount. I acted as though the credit cards were some sort of pay increase! Don't make the same mistake.
