Honestly, keeping your finances in order is not the easiest thing ever. And especially if you don’t start on the straight and narrow early in life, poor spending habits can catch you in a trap that’s hard to get out of unless you can make some serious money while budgeting at the same time, later in life.
But there are always steps that you can go through in order to fix your money troubles, and they may include figuring out the credit card conundrum, using smart budgeting, living on cash only for awhile, minimizing your living style in general, and considering the story of the junker car as a template for daily activities.
The Credit Card Conundrum
It will seem like a simple decision early on, but which credit card you choose can have an extremely complicated set of consequences later on if you’re not careful. Different cards have different rules about interest rates, cash back programs, mileage points and rewards, and even what the companies do about over-drafting or running out of money. Different cards also have different criteria for upping your credit limits. Choose wisely, and your credit woes will be – less woeful.
Want to fix your finances? The first step is understanding what your finances are, and that means setting up a budget along with setting up a way to easily access all of your financial transactions. You don’t need to be good with numbers or have an accountant anymore to do this, as nearly all of these numbers are automated well enough that you can install one of a few different very powerful, free apps and have those figures at your fingertips in an instant.
Living On Cash Only
To learn a quick lesson in how to fix your financing, try living off of cash for a week or so. You’ll be amazed at how much your spending habits will be different simply because you have to add the act of getting dollar bills out of your wallet instead of just flipping a card through a reader. The effect is real!
Minimize Your Living
Another way to set your finances straight is to generally try to minimize your life. How bad do you need certain subscriptions? Do you need 300 channels? How many sets of clothes do you need, or boots, or coats? When you start cutting down on the things you have, you’ll find that you buy less to replace them, saving you money in the long run.
Consider the Story of the Junker Car
There’s a theory that suggests that you should buy the least expensive thing that you can that will work for your situation. In other words, you buy the cheapest car that will get you where you’re going. If you maintain this kind of attitude, you’ll save tens of thousands of dollars over time, and that money can go directly towards other, more fun things eventually!