If the balance in your savings account isn't
growing fast enough, a typical budget-buster might be to blame. Sadly, you're
not alone in missing your financial goals. According to a survey
conducted by Highlands Solutions, 63% of Americans have no savings and live
paycheck to paycheck! And 53% o Canadians live paycheck to paycheck, according to a 2019 survey by Refresh Financials. Are you one of these?
Thankfully, there are steps that you can
take to get your finances back on track.
Use
these strategies to stick to your budget and achieve your financial goals:
1.
Avoid impulse shopping. If impulse
shopping is your weakness, resist the temptation.
·
If you go shopping for a needed
item, take a responsible friend with you to help strengthen your resolve.
·
Make a list before you shop and
then buy only the items on your list.
·
Leave your debit and credit
cards at home and only bring enough cash to pay
for the needed items.
2.
Seek to understand what triggers your overspending behavior. For example, if you find that you're more tempted to abandon your
budget when you've had a difficult day, only go shopping when you're well-rested
and under less stress.
3.
Identify specific items that are hard for you to resist and avoid. If there is a particular store or website where
you consistently seem to go over your planned spending, find new, less tempting
locations to shop.
4.
Get organized. Adopt a new method of
organizing your important papers and receipts if "forgotten bills"
seem to constantly surface and derail your spending goals.
·
If you forget to pay a bill,
you may have to pay a late fee and interest. Those extra charges can add up quickly!
·
Set reminders to cancel
memberships and other subscriptions before they auto-renew to avoid paying for services
you no longer use.
5.
Shop for better rates. Just because
you're satisfied with your current service provider doesn't mean that you
shouldn't periodically shop for a better rate.
·
Every few months, review your
expenses and seek ways to reduce the amount that you pay for many standard
services, such as your telephone bill and car insurance.
·
When you contact your provider,
ask if you'll save money by bundling services or cut back on features that you
seldom use. While your provider may not reduce your bill, it doesn't hurt to
ask.
6.
Watch for unusual spending. Periodically
review your expenses and see if you can identify an area where you frequently
overspend. Most of us typically overspend in a specific category.
·
Challenging categories for most
folks include clothing, entertainment, transportation, travel, food, and
housing.
·
Once you've identified a
category of expenses that seem to break your budget, seek ways to make smarter, less expensive choices when you buy
things in this category.
·
Reducing your spending in a
specific category can be very challenging. For example, if your housing costs
are eating up too much of your budget, your only solution may be to move to a
smaller or less expensive location.
7.
Get outside advice. If you find that
you're frequently over budget or have difficulty meeting your financial goals, seek
professional help.
·
Most accountants and financial
planners can offer sound advice to help you learn how to plug the holes in your
budget and gain control of your finances.
·
You can find lots of free
and low-cost advice on budgeting and financial planning online.
·
Many organizations, such as
churches and local chambers of commerce, offer free or low-cost credit
counseling and financial planning courses to members.
Becoming aware of common budget busters and
selecting a strategy to deal with them can help you stick to your budget and
increase your savings.
No comments:
Post a Comment