It’s easy to allow bad habits to take over your life. It’s much easier to spend money than it is to carefully and thoughtfully save it. Unfortunately, allowing bad habits to control your finances usually results in overwhelming debt. Thankfully, filing for bankruptcy in Aurora, Denver, or Centennial can give you the fresh start you need. As an experienced bankruptcy lawyer, I have seen many common bad habits which aren’t always easy to spot – they’ve become too “normal” to be suspect in your financial trouble. In today’s blog post, I’m going to give a few examples of bad habits that keep you from saving money.
1.Not Budgeting or Tracking Expenses
One of the biggest financial mistakes people make is the lack of a budget. How are you supposed to know where you are losing money if you don’t know where it’s going each month? One of the best ways to start saving money is to start keeping track of where it goes. Quicken is an excellent, cheap tool for tracking your expenses. Once you know where your money is going, you can decide where you can cut back. Boundaries in your financial life will be refreshing – you won’t feel guilty about splurging on a night out if you know it’s within your budget.
Helpful Tip: One of the best budgeting apps is Mint. You can connect all your bank accounts and use the program to easily set up a budget.
2.Lack of Financial Preparation
Life is unpredictable. You don’t know what will happen when you begin your day. Maybe that money you’ve been saving for a new car will instead go towards your medical expenses from a car accident. One of the most important things you can do is to set up an emergency fund. Always have money to fall back on. That way, when your car unexpectedly breaks down, you’ll have money already allotted for such an emergency. You won’t have to go into debt to get to work.
If you have set up a budget and now realize your shopping habits are responsible for your debt, it’s time to work on breaking your bad habits. If you aren’t willing to make cuts and sacrifices, you won’t be able to save money. If you know you can’t visit Target without spending more than you want – start shopping at a different store. Other common money-wasters are eating out too often, taking advantage of sales that are “too good to pass up,” and buying name-brand products. Take a moment to look at your bad habits – then put steps into place which will free you from your addiction.
Helpful Tip: Overcoming a shopping addiction can be difficult – read this helpful article on how to be successful at overcoming your habit. And, learn how filing for bankruptcy can help you end the bad financial cycle caused by your shopping addiction.
4.Excuses, Excuses, Excuses
The mind is a powerful thing. If you keep denying you have a problem saving money, you won’t be able to make any progress. Be honest with yourself. Look at where you spend your money, and then reevaluate your mindset. Talk to friends who will give you an honest perspective, then take their feedback and put it to good use.
Helpful Tip: Often, we are our own worst enemy. Read this helpful post about taking control of your life by stopping the excuses.
Sometimes, it’s simply impossible to save money. If you are overwhelmed by debt, no amount of skimping and saving will help. That’s because a large portion of your paycheck each month is going towards interest. When debt is siphoning your savings, it can be difficult to make ends meet, let alone save. If this sounds like your situation, filing for bankruptcy in Littleton, Highlands Ranch, and Parker can give you a fresh start. Your debt will be liquidated, and you can put new habits into place to secure a good financial future.
If you are struggling with overwhelming debt and are having a difficult time saving money, don’t hesitate to contact experienced bankruptcy lawyer Barry Arrington for a free consultation to determine how bankruptcy can help you. Contact him for a free consultation at 303-205-7870.
He will help you get the best fresh start possible.