The start of a new year has always been recognized as a good time to stop old unhealthy habits and start new healthier ones. This effort is in reflection of the macrocosmic shift we experience each year, as all of our cycles and seasons are renewed, so we too feel the need to improve and grow. Although one thing many don’t realize about new years resolutions is that they can start at any time during the new year, and aren’t limited to only working on the first of January.
When changing our habits for the new year, there are a few common areas in our lives that are deemed most appropriate to change. Health is a typical area which most people feel they can improve, with ‘quitting smoking’ and ‘exercising more’ being common resolutions. Although one thing many people forget is their financial health, which can impact life as much as a change in diet or exercise routine.
As a provider of car title loans in South Gate CA, we thought we’d explore some bad financial habits you can break today, in hopes that it may help you to manage your finances better.
Regularly Spending More than You’re Earning
This is a relatively common one and is caused by a few factors which make it all too easy to do so. Credit cards and payday loans have become so commonplace nowadays, that many people live more off their credit card and loans than they do of their own income. Spending more than you’re earning isn’t hard if you’re not earning much, but it leaves you in a vulnerable position if you suddenly do need money.
While having a credit card or utilizing payday loans in itself isn’t harmful, you should know what you need to buy and what you don’t.
One remedy to excess spending is budgeting, which will probably seem like a bit of a joy kill to those who love their retail therapy. Although what it allows you to do is see exactly where your money is going, and which habits you need to change to start saving more. If you’re trying to cope with problems via retail therapy, you may be surprised to find that there are actual therapy providers out there which are cheaper than even the most minor shopping spree.
There are a huge range of easy-to-use budgeting apps available on smartphones which can help you, otherwise find a template online to print out and fill in. As a provider of car title loans in South Gate CA, we believe in helping our customers pay off their loans, and have plenty of free advice in our blog section (including this very article!).
Failing to Pay Things on Time
This could be in loans, debt, or even a small sum borrowed from a friend or family member. Regardless of who it is, you should always aim to pay your debts back on time and in full. This will limit any accrued interest and late fines, which can substantially conflate the original debt. When it comes to a friend or family member, not paying your debt back in time could affect your relationship with that person, and very few people are worth losing over money.
Failure to pay things back on time affects other people’s financial situations, in formal agreements, this can come back at you in interest or fines, in informal agreements, it can hinder someone else’s life.
Prioritize Debt Repayment and Cap Your Total Debt
Failure to pay off debt can lead to a myriad of nightmare scenarios. From repossession to criminal charges, the consequences of which often aren’t worth the good or service you got in debt for in the first place. When budgeting you should consider your debt repayment a priority over any luxuries or ‘wants’ you may have.
Another common problem people have with credit cards and payday loans is that they can be uncapped and you can accrue a range of debts from a variety of companies. You should cap your debt at a manageable amount, and never exceed that amount.
Being a Dependent Consumer
Capitalism as a system works because people are able to make themselves dependable for access to certain products or services. While this has made it easier than ever to find specific goods or a variety of services that can be specifically helpful to your needs, it has also disconnected us from the simplicity of doing it yourself.
One great example of this is buying a coffee (or multiple coffees) each day from a cafe near your home or work. Most people will have a fully functional kitchen that can make coffee, although due to poor time management will rely on the cafe for something they can do themselves.
Take the Power Back
While it takes time and definitely involves some unavoidable mistakes, learning to do things for yourself will not only save you money, it will empower you to do more for yourself and your loved ones.
Getting Car Title Loans South Gate CA
As a provider of car title loans in South Gate CA, we know that sometimes loans are necessary to help us out of sticky situations. We’re here to help, and have plenty of great resources on our website to help you stay on top. Check out our website for more information or call us today.