Are you are struggling to pay your bills? Do you want to save money? Do you want to buy the home of your dreams or retire early? If you answered yes to any of these questions, then this blog post is for you. The quickest way to have more money is to spend less. And, paying with cash helps you spend less.
Cash is King because it is real, in your face, and allows you to be immediately accountable for your purchasing options.
I know that just thinking about changing your spending habits is stressful. I know, because I have been there. But, if you can get a handle on your relationship with money you gain power.
Here are some necessary steps to gain control of your money.
1. Sit down with your checkbook or Internet banking statement and list all your expenditures.
2. If you pay cash for anything, then keep the receipts so you can add these figures to your list.
3. Do not guess. Take time to record accurate information, so your plan will work.
4. It is difficult to face the reality of your current financial situation. But doing so is the only way to reach your goal.
5. Start paying with cash as often as possible.
6. Put away the debit card.
7. Put away your credit cards.
8. Budget a weekly amount for idle spending, and don’t spend more than that amount.
9. Put the amount you want to save in savings before you pay all your bills. Then pay your bills. What you have left is what you have available for extra savings or to pay down more of your debt.
10. Quit spending on things you don’t need. Determine what is more important? Items you don’t need can include, but are not, limited to:
– Cigarettes, etc.
– Junk food
– Cable, Netflix, etc.
– Stuff you don’t need
– New cars.
You need to start paying with cash because when you use cash you know exactly how much you have to spend. Paying with cash puts a limit on your spending. Using a credit or debit card makes it easy to spend more than you planned. Because you don’t see the money leaving your hands. It gives you the illusion you have more money to spend than you do.
Creditors such as banks, credit cards, the cable company, etc. control many people. When you owe other people money, you are in a position for them to control you. I know someone who had the interest on their credit card increased because the balance stayed too high. He’d never made a late payment, and he had excellent credit. The credit card company saw an opportunity to make more money in interest charges, so it raised his rate. This individual decided to pay off his credit card and cancel it. Don’t let the credit card companies control you.
This is just one of the many reasons not to carry a credit card balance and not to owe another person money. Having debt is stressful. Debt is even more stressful if you lose your job, have a sudden increase in medical expenses, or need a car repair. A savings account with money in it and minimal debt can help reduce your stress level.