subject: How To Limit Your Spending Habits For Good - Part 1 [print this page] How To Limit Your Spending Habits For Good - Part 1
1. Have only 1 credit card and use it for online payments only, while you have the amount in cash available. Transfer the cash to your credit account as soon as possible.
2. If you are making a purchase on your credit card make sure that you return that exact amount to the credit account by month end.
3. Treat your credit card as if it's a debit card. To use it you first need to have the cash available to spend on the item you want to buy.
4. Banks raise your credit limit when you are close to clearing your debt on your credit card. Don't fall for it; ignore the increased limit and strive to keep your credit account at a zero amount outstanding.
5. When going shopping leave your credit card at home; it's not for buying food. Budget beforehand what you are going to buy and stick to your list. This is really tough, but it gets easier if you endure in it.
6. Don't get yourself one of those 'buy food on credit' cards. It will just start a bad habit of budgeting to buy food on credit every month.
7. If you have credit accounts for clothes stores clear the outstanding balances as soon as possible and close the accounts. The clothes in these stores are generally over-priced because you are paying for a label, skyrocketing your bill, making it impossible to clear a simple 4 items buy within 2 months. So much more interest to pay!
8. Do your monthly budget a day or two before receiving your salary. This will bring perspective to the availability of money for unplanned items.
