I'm here to save YOU money. My name is Kristina and I want to give you the most up-to-date saving tips and ideas.

Monday, 7 January 2013

The Trick to Stop...

Hello Everyone!! Happy Money Saving Monday!!

This is a great quote, it caught my eye as soon as I read it and I thought, perfect for today!! 

Is it so true that when we get some kind of a loan, visa, master card or another kind of credit given to us we tend to think we have more money to spend?? I catch myself thinking that way sometimes. 
REALITY CHECK!! Its not. Its borrowed and if you use it, you need to pay it back. Why I am saying this is because if we start to think of it as 'not ours' rather its the banks or the governments or friends, family members, whom ever we borrowed from, then it will make it easier to set that thing back down and rethink before purchasing it. 

Think of it this way: 
-You will have to pay it back
-You will have to pay interest
-If you know you cannot give a payment toward the 'card' or 'debt' within the month, don't make the purchase. 
-Keep it for what you need it for, not what you want
-Know that the more you save now, the less debt you have, the more money you have later

Its so easy for us to get tempted to spend now a days. And this is one simple way to help us not to spend too much. Another way of looking at it: 

If you have a family or a significant other think of it this way. The money isn't all of yours. Before you spend, think of the entire family or of your spouse, whomever you have in your life that means responsibility other than yourself. Then decide, am I taking from them? Could it make it hard on us down the road? am I jeopardizing or even neglecting these relationships. Will it benefit just me or will it benefit 'us'? Even worse will it destroy us?

A big sucker is OSAP or student debt. Students get these student loans (whether it be osap or not) and they pay off what they need and have a thousand or a few hundred or more or less left over, then they think.... EXTRA MONEY!! But reality is that thousand or so will be increased with interest and you will have to give in back some day. 

Tip: Rather then spending the extra, save it for an emergency firstly, but mostly to have to go towards paying it back. If you took out 6,000, used 5,000, you will have less to pay back to them from the original owing and less interest added to it cause less was used. 

You see what I mean? 

In other words, instead of taking 5 years to pay off your debt, you have 4 years. That means the sooner you pay it off, the sooner you can get that dream car, home, wedding...etc. 

I hope that helps :) 

With Love: 

See Also:
Saving Money when shopping Online 
11 Steps to Financial Freedom  
Other ways to save money