QUIT SPENDING MONEY NOT EARNED

QUIT SPENDING MONEY NOT EARNED

Source: www.davidsklar.com

Stop The Spending and Living Beyond Your Means

For some, a hard lesson to deal with is to stop spending money that you have not earned yet. Granted, there are things that will pop up that will need to be purchased, or purchased with a loan.

Essentially, if you do not pay your credit card off full every month, this is money that you have not earned, but is spending. It is a recommended habit that you pay off your credit card full each month. Granted, many of us like getting the rewards points, that’s associated with our credit cards, but if you keep building up the balance on your credit card, then the interest payments can easily outweigh any rewards you are saving for.

If you are planning on taking a vacation, planning a year in advance and saving up little by little each month is a much better strategy. This is money that you have in your savings you are putting aside, plus the best way to fully enjoy a vacation is ending it knowing that it’s fully paid for.

If you’ve been reading the news lately, chances are you’ve heard that Canadians now have record debt levels, and these are on our credit cards, line of credit and loans.

If you find that your credit card balance is increasing per month and you’re not paying down any debts, then this should be a warning sign. At some point in time, you will need to deal with this extra debt load.

Living beyond your means can creep up on someone very slowly without knowing or realizing it.

Warning Signs you are living beyond your Means

• Running out of money before the end of the month/next paycheck

• Balances on Line of Credit or Credit Cards Rising each month

• Paying only the minimum on your Line of Credit or Credit Cards, but still increasing the balances on these loans.

• Going into your overdraft on your bank account

• Missed Bill Payments

• Using Cash Advances and/or borrowing money from family

With all the extra avenues to get access to money via our lines of credit, credit cards, overdraft, this makes it tempting for one to continue to increase their debt load and end up having debt that they are no longer able to handle and then have collection agencies calling wanting their payments.

Realizing you have a spending problem is the first step, taking action against it to rectify the problem and work towards a solution that will work is the next step. If you find that you are in serious debt that you are unable to handle, then you can make a free appointment with the offices of David Sklar & Associates