If you’re spending more than you earn because of household debt, mortgages and daily needs, while you have very little to zero savings, you may feel guilty spending from time to time. But guilt is such a sharp price to pay when there are certain things that you can do to lose that guilt and empower yourself to take control of your finances.
Here are smart ways to manage your long-term personal loans while accommodating your needs and (if you’re a parent) of everyone else around you.
Make sure you have the right reason for borrowing from your future income. One of the major differences between long term personal loans from credit cards is that you know what you want to do with your money. It is not some sort of compulsive buying, but a well-planned expenditure. You know how much is at stake, you understand that you have to pay for it for several years, so you’ll think of the right reason to get one. Some of the very good reasons to obtain a loan are– to spend it on medication and hospitalisation, education, home improvement, car repair, major life events like childbirth, birthday, wedding, funeral and the likes. Startups can also obtain loans to access capital to kick start or grow their business.
Create a tight budget. If your finances are rather strained, make sure that you know how much you earn and how much you owe, so you can freely decide how much to spend. Allocating money on your most pressing needs (the real purpose why you took the loan in the first place) and if there’s some leftover, put it towards savings for many unexpected expenses. This way, you don’t have to rely on credit for unexpected costs anytime soon.
It’s also important to record your spending-including dining and recreation, by keeping all your bills and receipts. It will help you understand how much you can actually save if you don’t make impulse purchases or if you have chosen a less-costly alternative.
Do comparison shopping. Well, if you really want to save money, why not embark on a discount shopping adventure? Write down the things you need and surf online or visit the brick and mortar stores for the lowest prices. This does not just apply to food and travels. Comparison shopping is very important especially if you have to pay for it on a long-term basis—like insurance, mortgage and personal loans.
Always set a spending quota. It applies to all purchases-grocery, garments, household items, appliances and dining out. If you’re travelling, throwing a party or simply buying stuff for any reason-make sure that you don’t exceed the ceiling amount. It will help you stick to your budget and prevent you from dipping into your savings or maxing out your credit cards.
Save for your personal needs and leisure activities. Don’t deprive yourself of the things you need or want. Just tame it down a bit—but don’t get rid of the good things that you really love doing. There are two things that you wouldn’t want to interfere with your financial plan—guilt and self-pity.
When you rebel against spending on things or people other than yourself—your financial plan wouldn’t work in the long run. The painful feelings associated with self-pity are unpleasant and overwhelming. It will distract you from looking into the bright side of keeping tabs on your finances. The key therefore is to pay for things that you enjoy but do it in moderation. If you treat yourself to a spa or to your favorite restaurant once a week, you can go there once a month, instead. Or you can look for a cheaper alternative. The same thing goes with food and clothes and expensive travels or hobbies—save those activities for special occasions.
Sticking to a budget is like following a diet plan. While your hand itches to that mouthwatering bag of chips, or viciously delicious gallon of ice cream—you have to turn your head the other way, and clamp your hands to your pocket. It also helps if you know you’ll give yourself an occasional treat.
You don’t have to stay away from things that you like—or else your desire to get them will spiral out of control. Resisting your cravings to buy your favorite food, go to your favorite gym or enjoy a night out with friends-TOTALLY will make you want them even more with a ravenous appetite. You may also feel deprived and sad when you think you cannot do the things you enjoy anymore. These types of feelings may result to compulsive spending. So, pursue your hobby and other healthy things you do for fun –but always do it in moderation.
Are you interested in obtaining long-term personal loans but you want to save money at the same time? Make an enquiry today and we will show you how.