Budget to eliminate debt: Forceful ways to stop you from overspending
This is a guest contribution from Zinaida Grace, a financial writer who has profound knowledge on the financial industry.
When you lack the strict willpower to prevent digging yourself further into debt, then you need to employ some radical means to accomplish that. In return of your hard work, you’ll get to eliminate debt from your life without feeling any pangs of guilt whatsoever.
Cut back your monthly expenditures
One of the most coercive tactics to stop yourself from overspending is to freeze some of your assets and most importantly, your credit cards in a big block of ice. It would have been best, if you could cut your cards away, but then you can still keep a path open to access them in case of emergencies. However, keeping credit cards with you will always act as a hindrance in your effort to completely wipe out those debt woes from your life.
There are several issues in this kind of budgeting tactics. One of them is that the growth of online shopping has reduced the necessity to carry credit cards physically in order to make the purchases.
It is all the more easier to go on a binge shopping on ecommerce websites like eBay or Amazon since they keep all the credit card information of the buyers stored in their databases. So, you can make the payments online, if you have been using a credit card for quite some time now and that, its number is known to you by-heart.
Another coercive tactics to mend your erratic spending habit is to put a part of your monthly income in an envelope. This you must do at the very beginning of the month. However, before that, you will have to calculate the amount of money you had need to pay for your discretionary costs like cellphone bills, newspaper/magazine subscriptions, restaurant bills, etc and non-discretionary items such as mortgages, insurance premiums, utilities and so on.
It must be noted here well that you need sufficient amount of cash left with you to budget for the upcoming entire month. In this case, it may be impossible for you to create a budget, if you are already living from paycheck-to-paycheck and hence, you will not be able to set aside the entire month’s worth of discretionary costs.
Make savings your top priority
Irrespective of the method chosen by you to cut back your monthly expenses, using them will definitely help you to avoid overspending and save you a lot of money, as a result of it. This is because it will help you to visualize the exact amount of money you are spending in a given month which in turn will reduce your impulse to overspend.
Even then, there isn’t any guarantee that employing these money-saving tactics will prevent you from overspending. Therefore, to follow a foolproof money-saving method, you need to decide before hand exactly how much you are going to save in a month, but you will have to make sure that you don’t budge from saving the same.
This way you will be left with a limited amount of cash to splurge on the discretionary items and thus, it will force you to stick to your budget no matter what.
Zinaida Grace is a financial writer who has profound knowledge on the financial industry . She contributes her articles to different financial websites, blogs and communities.