If you often have to borrow money, most likely, you have often thought about how to stop it and whether it is possible in principle. In order to begin to approach life without debt, you need to reconsider your views on many things in your lifestyle.
There is a rather tricky thing: banks offer to get a credit card with a small amount on it in order to improve their credit history, but a person often falls into the “trap” because it is easier to pay with a card and more difficult to resist a regular purchase. Thus, a person often spends more than he can afford.
Thus, the first thing I want to say – soberly assess your capabilities, because the thought “I have money on a credit card, then figure it out …” can cost a lot of losses in the future.
It is best to review your behavior and attitude toward money, and begin to control your habits and finances.
9 tips to borrow money is no longer a problem
The availability of savings at the time of an emergency
Few people like to save money for a rainy day. Yes, and to save money, in principle, today is a rather difficult task. But it is important to understand that some unforeseen expenses can have a detrimental effect on household money.
Many people rely on credit cards in such situations. Yes, this is a good way, but after you solve the problem, another one will start – an open credit account that needs to be paid.
Try to have at least some amount at your disposal, so that if you do not cover all unexpected expenses, then at least borrow money less.
Live on funds smaller than your wealth
Until you learn this, you can never fully control your finances and save money.
Start spending less than you have. Make yourself think every time about the next purchase. You do not need to lay out a credit card at the checkout simply because there are funds on it at the moment. When your expenses become less than revenues, you will be able to close debts faster and save money in the future.
Pay more than the minimum card payment
Borrowing money is not the most pleasant thing to do, but it seems to be not such a bad business to issue another credit card. After all, the debt will begin only from the moment when you begin to use it. But this is just another smart move by the banks. And we must not forget that credit cards are very convenient to spend money in more quantities than you can afford. Often, you simply replenish it with minimum payments in order to spend this money again in the near future. Debt does not decrease, and interest is paid every month.
If you are interested in how to get rid of loans, start to put on the card more than the bank determines you the minimum payment. It is best to do this every time the opportunity arises.
Stop making impulse purchases.
Even people who do not have debts are sometimes inclined to make purchases under the influence of impulse. But in order to get out of debt or not make new ones, you need to report to every ruble spent.
Going to the grocery store or shopping before the start of the school year – be sure to make a list in advance of what you want to buy and keep to this list. It will also be a good way to take with you exactly the amount of money you need and no more.
To pay with a credit card essentially means borrowing money again. Cash is much more physically tangible, and parting with it is usually more difficult than with the numbers on the card.
Split your cash into several groups of expenses and put them in different envelopes, so you will always know how much you can spend.
Pay attention to all details.
Every ruble that comes and goes must be subject to a report. Thus, it is possible to calculate where you can save or earn more. Spend time analyzing your funds, study all accounts as often as possible and optimize your financial balance.
We are talking about big goals, such as, stop borrowing money, and smaller ones, such as putting more money on the card every month or spending less money in the store. If you do not set yourself specific goals, most likely it will not happen.
Learn to say no.
Phrases such as: “last time,” “just now,” or “I saved yesterday,” may end up costing a family budget tens of thousands of rubles a month. It is sometimes difficult and even depressing to postpone a vacation or to refuse interesting weekends, but it is necessary to save your home money for a swim.
Go with the right people.
People around you can affect your well-being. When you see your friends spending money, you are more likely to give an impulse to make unnecessary purchases. Some rich people claim that they became richer when they surrounded themselves with successful people.