Essex Auto Title Loans

Effective Solutions For Overspenders

As mentioned in the previous post, admitting you are an Overspender is the first step to improve your financial habits. Of course, this is easier said than done which is why I have listed down the effective solutions for every Overspender out there.

1. Create or modify your budget

Know where your money goes by taking a look at how much you are earning and how much you are spending. See the amount you spend on luxury by tallying it down so that you could clearly take a look at how much you burn your money.

Here are the steps to help you start with:

Categorize different expenses from your income. You can use the traditional pen and paper method or a Spreadsheet.

Compute everything you earn. Whether it comes from your salary, investments or other sources of income, it is best to have a clear view of how much you are earning.

List down all your fixed expenses. Fixed expenses are those bills that you regularly pay may it be electricity, water, credit card or mortgage.

Allocate a budget for your variable expenses. Variable expenses are those expenses which vary. These include clothing, groceries, car gasoline, etc. Allocate enough budget for these expenses. The amount should be enough so that you won’t be tempted to go over your budget by making sudden splurges.

Start some savings. A healthy financial lifestyle include regular savings. Dedicate at least 20% of your regular income to your savings account. The rest would then be dedicated to your fixed and variable expenses. Savings can cushion you in times of financial crisis. Aside from helping you successfully deal with your financial problems, savings can give you extra cash for your wants as well as prepare you for a better retirement several years from now.

2. Use cash instead of credit card. Credit cards let you believe that you have money to spend when in fact you don’t. By using your onhand cash rather than your credit card, you will be less tempted to make impulsive purchases because you will know you don’t have enough cash to spend. When your money runs out, you will be done spending.

3. When all else fails, use financial solutions like Essex auto title loans. Simply use the equity of your vehicle to avail of Essex auto title loans as much as $50,000. You can borrow a lesser amount too if your need is lesser.