Every month you wait anxiously for the time when your salary is paid but it always goes away before you can even plan how you will spend it? There are some financial behaviors that can take your money away without you noticing.
Here are some factors that help your money disappear as soon as you get it. Do you identify with any of them?
Shopping on credit card
Credit card abuse is one of the biggest consumers of pay. When you see, only in the invoice has been much of your earnings. What’s worse is that it makes you need to use it again for lack of money.
Actually, this is a difficult cycle to break, after all, if you do not pay the bill you will owe and accumulate interest, but when you pay it, there is little money left to spend. In that case, try cutting off superfluous expenses for a while and only use the credit if you need something urgent. Otherwise, better wait for next month and pay cash!
Use of overdraft
The end of the month is coming and your money is gone, but you continue to spend and inevitably use overdraft money, the bank’s famous “limit.” When your salary goes to the account, even before you see it, it has already been used to cover the debt in the bank and the interest it has generated.
Keep an eye on your account and keep in mind that overdrafts should only be used in emergency situations. If you are short of cash at the end of the month reduce your spending, stop going out and buy things until your payment falls again.
Payment of loans
Needing personal loans is never a good thing, but sometimes unforeseen events force us to resort to this alternative. After a while, you have to pay for that debt, and if you do not schedule yourself from the start, it may be that the installments are incompatible with your earnings, taking away much of your salary.
When you need a loan negotiate the payment so that you can afford the installments and still give you money for your monthly expenses. It is no use making larger installments to pay less interest and ending up paying other bills or having to resort to new loans. If you are already in this situation, it may be a good idea to renegotiate the debt to something more appropriate to your income.
Lack of planning
It is common that at the beginning of the month, when the salary arrives in the account, people feel that they have money left and go out spending with everything they want, without thinking about the accounts that have to pay in the following days. This is due to the lack of planning, when it is not known exactly what the fixed monthly expenses are. Without knowing this amount it is impossible to calculate how much of the money is actually ” left over ” for extra spending and makes it easy to blow up the budget and need to appeal to the credit card or overdraft.
First of all, keep in mind what part of the money that has just fallen into your account that can actually be spent and which part is already committed to the payment of bills and indispensable purchases, such as supermarket, and transportation.
So, did you recognize yourself in any of these situations? Note that they can all be resolved with a little discipline and planning. So get to work! Do you know any more of a villain who could get their money out early in the month? Tell people there in the comments!