Being a money spender is something that most of us do on a daily basis, but there are times that it goes out of hand and we are left with nothing until the next payday. If that is your situation for most of the time, then it isn’t healthy for your financial status because you might end up being broke someday. It’s important that you always look for other options to make it work for you and get rid of your bad money spending habits so that you will be financially secure in the future. So if you want to become wise and successful in your money spending habits then here are some tips we have for you.
If you can borrow/rent something instead of buying, do it – If you know a friend or probably a store that can rent you certain items, then go for that alternative instead of buying it. Books, DVDs, party supplies, and many others are some of the things that can be rented out. Being able to rent will help you save your money as well as lessening the pile ups in your storage. So make sure to think twice about the item you plan on buying to see if it can be rented out instead.
For your mortgage, pay a high down payment if you’ve got enough money – There’s no doubt that buying a home can be the costliest payment you’ll ever make in your entire life. With that in mind, paying it will be done in installment because it can make a hole in your bank account if you do it in full. If that is the case, you must be wise in spending your mortgage money. Since you are paying in installment, you must minimize your interest payments and fees while you balance your remaining budget all at the same time. So it would be best if you pay your down payment a bit high to make the interest for your remaining balance a bit smaller. Just make sure that you prepare enough money before your mortgage application.
Own a credit card since it’s important in establishing credit – If you have a credit score of 750 or higher, then you will be given lower interest rates and even get an opportunity to secure a new loan. Just apply for a credit card even if you will be using it too rarely. However, don’t go berserk on your shopping now that you have your credit card because it will defeat the whole process. Just lock it up in a drawer if ever you don’t trust yourself in handling it.
Spend on what you have – Even if you are a high earner but the money you have right now doesn’t support that statement, you are actually hurting yourself. You should only spend the money that you have instead of basing it on how much you make unless of course there’s an emergency at hand. This will help prevent the buildup of your debt and make yourself be prepared for the future.