Bad habits can be hard to break, especially when it comes to spending money. Avoiding temptation and sticking to a successful budget takes patience and discipline. With most American’s having less than $1,000 on average in savings accounts, financial management should be taught starting at a young age. Without seriously changing any poor spending habits, you could be in real trouble and continuing to slide more into debt.
If you have had a tough week at work, a recent breakup, or a death in the family, the first reaction to start to feel better could be going shopping. While a little relief is necessary to take care of yourself, you will need to watch any overspending, because if the statement balance comes in and you are not able to pay, a downward spiral of interest and debt will accumulate.
Continuing to Use Credit Cards
Paying with credit can feel like an unlimited piggy bank of funds without running out, unless you hit the credit limit of course, but sometimes you can lose the real sense of spending money. Switch to using cash and you can feel the money slip out of your hand to the cashier, at least giving you a second thought about making the purchase.