Eight Suggestions To Help You Regain Control Of Your Expenses – Part 2
On the first post in this series of two, we gave you the first four out of eight suggestions to help you get in control of your expenses, specially those ones that might seem mundane and that mist people tend to overlook.
However, these small expenses can -and will- add up to hundreds of dollars every month, which in turn can be thousands every year, forcing most people to get personal loans in order to repay them.
That said, let’s take a look at the last four suggestions to keep your expenses under control and thus, avoid taking on personal loans.
Don’t Save Too Much
While it might sound counter-intuitive at first, there is a huge difference between knowing how to save and saving too much. There are a lot of people that, in order to take advantage of special opportunities and also to fund their lifestyles, end up acquiring a lot of personal loans and incurring in a lot of debt to do so. That is why, even if your employer starts offering matching programs, that does’t mean that you have to use them. Also, what benefit you get from saving pre-tax dollars if to do so you have to get personal loans or to use your credit card, both of which generate hefty amounts of interest.
Don’t Let Your Relationship Leave Your Broke
A lot of people that are in complete control of their finances don’t know how to manage them when it comes to their relationships. This can become even more serious if you share credit with your partner for repayments of your personal loans, your credit cards and such, since any late payment from them will end up hurting your financially as well. Of course, if you get married your finances will intertwine even further, so you should make sure that both of your credit scores and personal loan repayments are in good shape. Aligning both of your financial goals will also be essential for a healthy financial life together.
Focus On the Big Expenses
Don’t let the big items drag you down. According to several studies, it has been determined that for a thousands of people it is the large expenses what hurts them the most financially. Things like your mortgage, your car payments, your personal loans, health insurance and other big debts should be minimized and you should put all your effort to do so, otherwise you risk having to apply for a personal loan in order to repay those debts. So consider all of these and always opt for the options that give you greater financial benefits, like choosing a second hand car, a personal loan with better terms and such.
Avoid Carrying Debt
As is to be expected, very single debt you have will generate an interest and in most cases will be quite costly. Be it a personal loan, a car payment or a mortgage, the accumulated interest of each of these debts can cost you up to hundreds or thousands a year. So if you are able to repay most of your debts by getting some cash from someone that can charge you less, consolidate them and you will see your expenses reduce dramatically over the next few months without you having to get a personal loan.
And that is it. We hope you find these suggestions useful and that with them you can learn to manage your expenses without having to apply for online personal loans.