How to Stop Impulsive Credit Card Spending

Impulsive credit card purchases feel good the instant you make the purchases and for a while after you enjoy whatever you’ve purchased. But, the honeymoon period ends once you get your credit card statement in the mail and you realize you actually have to pay for what you bought.

Impulsive credit card spending can be costly, especially since you don’t have to actually visit the store to use your credit card. Your spending impulses can cause you to rack up debt right from your living room by making phone or internet purchases. If you want to stop racking up credit card debt, you have to learn to control your impulses.

Learn the Cause Of Your Impulse Credit Card Purchases

What triggers your impulse spending? When you get the urge to make an impulsive credit card purchase, pay attention to how you’re feeling. Are you sad or angry about something? Are you trying to impress someone? Do you get a thrill form making credit card purchases? Impulsive credit card spending is based on emotions. Paying attention to how you feel when you make impulsive credit card buys can help you get your credit card purchases under control.

Tips to Curb Impulsive Spending

Don’t buy right away. Keep an impulsive shopping list in your purse or wallet. Rather than make a purchase the instant you get the urge, write it down and think about it for at least one week. Give yourself a month for purchases more than $500.

Then,if you still want the item and you can afford to purchase it, go back and buy it with cash.

Plan your purchases. Don’t let things you see in the store dictate how you spend. Instead, plan your purchases by making a list before you shop. Avoid buying things that aren't on your shopping list, giving an exception gives you an excuse to make even more exceptions.

Set spending priorities. Mortgage payment or new television? When you see the choice right in front of you, it seems easy enough. Yet, many people prioritize their spending based on what feels good rather than what makes sense. In the spur of the moment, you might find yourself spending your mortgage money on a new flat screen tv, then borrowing money from friends and family to pay your mortgage. Make a list of what’s most important and follow that list when it’s time to make credit card purchases. Take care of your needs before your wants.

Don’t deprive yourself. Some impulsive credit card spending comes from keeping your spending on such a tight leash that you never get to enjoy your money. Rather than starving yourself financially, allocate some money to spend on things you like. Keep your leisure spending in check, though, and be careful not to overspend.

Leave your credit cards at home. If you don’t have your credit card in your wallet, you can’t use it right? When you go shopping, carry only enough cash to buy the things that are on your list, not a penny more. Keep your priorities in mind and don’t make any unplanned purchases.

Shop with a partner. Shop with someone you can trust to help keep your spending in check. Make sure this person won’t an enabler to your spending impulses and will stop you from making purchases you haven’t planned and can’t afford.

Give in to your second thoughts. Don’t be afraid to put back something you know you really shouldn’t purchase, even if the clerk has already scanned it and put it into your basket. In the long run, it’s much better to put something back than it is to pay for it because you were too afraid not to purchase it.

More at:http://credit.about.com/od/reducingdebt/a/stop-impulsive-credit-card-spending.htm

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How to Pay Off Credit Card Debt (Faster)

 

It always helps to start with a plan. And while it used to be a real hassle to create a debt free plan, it’s much easier now that we have tools like ReadyForZero. You can sign up for ReadyForZero (a free tool) and in just a few minutes you will be able to make a plan based upon how much you are able to pay each month toward all your debts.

When you make a plan, be realistic about how much you can pay. If you can only pay the minimum payments for now, that’s okay. But if you can pay a little bit extra, dedicate that amount to the debt with the highest interest. Try to focus on that high interest debt like a laser until you get it wiped out, and then you can move on to the next one.

Use Your Peers for Competition (or Support)

Some people are motivated by trying to outpace everyone else. Other people are motivated by encouragement and collaboration. No matter which one you are, your friends can help you stay motivated to get out of debt. If you like to measure your progress against others, it will be easier to talk about money with your friends and family if you make a competition out of it. How? Make a game out of how much you can save this week. Ask for a few overtime hours at work and compete with your friends on how much extra you can throw at your credit cards this month. Then whoever pays down their balance the most this month will win a cool reward, or at least bragging rights.

On the other hand, if you are more motivated by encouragement, then share your goal with your friends and family and ask them to keep checking in and offering their advice and words of wisdom. You can use their support to keep you on track.

Negotiate a Lower Interest Rate

If you want to see more of your hard-earned money going towards the principal balance and not interest payments, then listen up. Take a quick minute to call your credit card company and ask for a lower rate on your account.

This could potentially save you hundreds of dollars on interest payments and knock months off your debt-free date. Be sincere in your request and kindly ask to have them review your account for an interest decrease.

What’s the worst thing that could happen? The credit card issuers could decline your request and you’ll transition to another strategy — no harm done. So why not give it a try?

 

More at:http://blog.readyforzero.com/how-to-pay-off-credit-card-debt-faster/

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5 Ways for Entrepreneurs to Build Wealth Faster

by Paul Scolardi

 

Most people today spend more than they earn and also have credit card debt that is spinning out of control.
As an entrepreneur, it’s especially easy for expenses to spin out of control and cause instability in your personal life. No matter what kind of business you own, and how much money you already earn, its always important to go back to the basic principals of building long term wealth.
Many times, the process doesn’t even involve as many difficult sacrifices as people might think. It can require some patience and a little planning, but with these five tips any person can find themselves on the road to building a strong foundation of wealth.

1. Save More

This tip should come as no surprise. If you want to have more, then you have to save more. The goal should always be to save 20% of the money you make every month. For some people, this simply is not possible, so shooting for 10% (or even less and than scaling up each month until hitting 10%-20%) is acceptable.
Remember to be conservative both in your small and large purchase decisions. The old idiom to not be penny-wise and pound-foolish is very important for business owners. It’s an easy tendency to look for the hardest bargain on paperclips and office supplies while recklessly spending larger amounts of bigger expenses before they are even necessary.
Wait 30 days to make a large purchase and this will give you the best clarity in your decision making.

2. Invest Right Now

Saving money is a great first step, but no one becomes wealthy from putting their money into a savings account. As soon as you set money aside for the month, invest as much of it as you can.
The sooner you start earning returns on your money, the faster you will build wealth. Invest in a variety of different assets, and create a diversified portfolio.
Also, never spend your investment principal.

3. Pay Off That Credit Card Debt, Now

Credit card debt means lots of credit card interest. Many times that interest is as high as 21%. Avoid the damage this high interest is likely doing and start paying off your credit card debt as fast as possible, and keep your charges to a minimum.
It can really add up over time.

4. Track Your Expenses… And Take Time To Review Them

Write down every expense down to the penny. Do this every day, and at the end of the month take the time to review it. You may be surprised to see how much you are spending on things like eating out or shopping.
For some, these expenses can add up to more than their ‘big items’ like utilities or mortgage payments. Look at areas you can cut and think about places where you are spending money wastefully.
A few simple cuts here and there can really go a long way.

5. Set a Monthly Goal, and Stick To It

At the beginning of every month, you want to set what is known as a “wealth goal” for how much money you want to have in your savings and investment portfolio at the end of the month. Write it down somewhere where you will see it and look at this goal every day. Put in the work, hustle and do what it takes to meet that goal.
At the end of the month, you will love the feeling of satisfaction you have over meeting your goals and will find that you are quickly building up a great deal of wealth.

More at:http://addicted2success.com/life/5-ways-for-entrepreneurs-to-build-wealth-faster/

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