Do you wonder why your paycheck always seems to disappear before you finish paying your bills? Are you looking for ways to curb your out-of-control spending habits? If so, we can help. In this guide, we’ll show you how to turn your poor spending habits into great savings habits. With these tips, you can get your finances back on track before you know it!Â
Figure Out Your Preferred Budgeting Method and Stick to It
Generally, out-of-control spending isn’t something you plan to do. That’s the problem. Often, poor spending habits can be traced back to poor planning. Or, perhaps, you do plan a budget but don’t stick with it.
Either way, the solution is to find out which particular budgeting method works best for you. For example, you can try the 50/30/20 budget. This is where 50% of your earnings go toward necessities, 30% is for things you want, and 20% goes to your savings account. Even better, you can make a habit of paying the 50% and the 20% the moment you get your paycheck. Then, you can spend the rest however you want without going over budget.
If the 50/30/20 doesn’t seem like a good fit, there are plenty of other budgeting systems you can choose from. Test them all and see which suits you best.Â
Budget Every Dollar
Another method you can try is the zero-based budget. Using this method, you plan where every bit of your paycheck will go, down to the last cent, before you spend it. This way, every dollar you make is “spoken-for.” So, you literally can’t deviate from the budget to spend carelessly. We recommend this method for those who thrive on organization. And, while this budget finds a use for every dollar, it’s important to stay flexible or have a rainy day fund in case the unexpected happens.
Use the DEXSTA Rewards Card
Lastly, the DEXSTA rewards card can save you even more money. However, this only works if you’re still careful to stick to your budget. For example, let’s say you budget to zero and plan where every dollar is going before you spend it. Next, go ahead and spend this money according to your budget. But instead of using your debit card, use your DEXSTA cash back rewards card. Finally, use your actual paycheck to pay off your credit card balance immediately. This way, you earn points that you can redeem for cash, but you don’t accrue any APR interest.Â
Turn Your Spending Habits Into Savings Habits
Your future self (and account balance) will thank you if you follow these tips now. This is especially true if unexpected expenses occur, which they always have a habit of doing at the worst time. So, are you ready to turn your spending habits into savings habits?