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    Money Habits: Little Changes Make a Big Difference

    We have all been guilty of spending a bit too much money on occasion or during certain stages of our lives. When we are young and free of responsibilities and financial obligations, it is very easy for bad financial habits to form, however this is a mindset that needs to be revisited when your lifestyle and commitments change.

    The golden rule for maintaining a healthy relationship with money is to never spend more money than you make. The amount that is left in your account after paying your rent/bond and covering your basic monthly expenses should be used carefully – if there is a something you really want to buy but cannot afford right away, rather consider saving up for a few months instead of getting an in-store card that is sure to have a high interest rate. The other problem with acquiring a store card with credit is the temptation to continue spending, knowing that you will only have to pay it back next month – over time, this bad habit will cause you to owe much more than you should, where you could be paying money back for years.

    For any individual that struggles to resist the “urge to splurge”, any sort of credit card or store card should be avoided, as this will almost always lead to financial troubles down the line. Some people are able to control their finances, or are fortunate enough to live lavish lives, but for most South African consumers, affording to live comfortably is far from easy. Once you realise that your finances are causing you stress and taking a toll on your life, it is time to make changes to your spending habits that will allow you to avoid circumstances like becoming blacklisted or worse.

    There are many ways that individuals can work on breaking bad spending habits. For one, drawing up a monthly budget will allow you to stick to a plan that ensures you will not run out of money. Another good idea is to stop taking out loans or applying for credit, especially when you are already unable to maintain your current financial obligations. Hold on to the feeling you get when you have put yourself in a bad place because of poor spending, and remember that feeling when you find yourself justifying an unnecessary purchase.

    Less Debt offers professional advice and debt review to consumers who are struggling to manage their finances. Our team consist of experienced consultants who have one goal in mind – to help our valued clients overcome their current financial worries. All of our services are NCR (National Credit Regulator) approved and our straightforward and free online debt assessment is the first step taken in understanding the reality of your current financial situation.

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