Do
you know the fundamental percept of personal finance? It is actually
knowing about the difference between a need and a want. So
if you cannot make the difference among the two, especially when you
are in debts, you are actually compromising with your financial
condition. There are two ways to quickly solve your debts or improve
your financial situation: make more money or curb your spending.
While not everyone can suddenly start making more money, everyone can
do something about their spending habits. One way to spend less and
still survive is to go on a cash diet. This means using only cash the
old-fashioned way to buy the items you need.
- Leave your payment cards (credit/debit) at home- The only way to limit your spending is leaving your cards at home when you are truly reliable on the cash present in your wallet. You will soon find not to spend on the items that you actually can ignore. But of course, remember, not to go short in hand. Please carry sufficient amount of cash with you to avoid the last moment embarrassment.
- Categorize your Expenses- before your month begins, it is wise to withdraw just enough cash to suffice your immediate needs like grocery, gas, bills, etc. Put the cash for each category in a labeled envelope and make sure that you use the money only for that purpose. Plan your budget according to your needs. In this way, you can successfully achieve the cash diet program.
- Carry only the enough cash whenever you are out- this does not mean to stuff all the cash in your wallet by emptying your account. But rather, calculate the amount of money you will require, and withdraw just enough to purchase what you need.
We
understand, starting a cash diet challenge and plan for your cash
diet is not so easy and this is why we recommend you to go for the
best credit counselling services to manage your debts more easily and
professionally.
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