Using a credit card now might be a common thing. This is because credit cards have become one of the payment instruments used by many people. Not to mention, credit cards have various types of attractive promos, such as promos from salons, hotels, restaurants, to being able to collect miles.
However, all these conveniences and advantages can also cause problems. Not a few people whose financial situation actually becomes chaotic because they can not use credit cards wisely.
For example, people who cannot control the use of credit cards can not pay bills and have to deal with the bank.
Well, if you include people who can not be separated from credit cards, it never hurts to improve things with the following five steps.
Start Reducing the Use of Credit Cards
The first way to stop using a credit card is to start reducing its use. Try to use only your cash and debit cards when making transactions. If you want to buy something and no money, don’t force yourself to use a credit card. Refrain yourself from being tempted by all the promos and discounts.
Remember, not all items you need to buy and have. Therefore, don’t owe it just to buy it. Reducing the use of credit cards at first may be difficult. Especially if you are used to using it as a method of payment.
However, you need to start now if not, you will be more difficult to escape from using a credit card.
Only Bring Cash
One trick to reduce the use of credit cards is to not carry them all the time. If you can, just keep the card when you travel, whether shopping or meeting up with friends. Try to only prepare cash or debit cards. This method is not only effective to reduce the use of credit cards, you know, but also reduce expenses and help you manage money better.
By only carrying cash, that means you determine the costs incurred on that day. So, your snacks and expenses that day must not be more than what has been budgeted. You can save more.
Don’t Apply for a Credit Card Online
Credit cards are not only in physical form with the current card, but also in digital form. The hope, of course, in order to facilitate you in the transaction. However, at the same time it can also make you more wasteful if you are not good at controlling your shopping wishes.
Therefore, so that your wishes can be separated from a credit card come true, it is better not to have more than one credit card and do not need to apply for a credit card online.
Using a credit card isn’t wrong, but it’s often we who aren’t wise in using it. Therefore, besides taking precautions against using a credit card, you also need to control yourself. Try to do a small analysis of your lifestyle and expenses. Does your lifestyle so far exceed your income limit that can be borne? If so, try to change it.
Just spend your money for your needs and don’t spend more than you have. If your lifestyle is in accordance with income, you certainly are not easily tempted to shop for various items that are beyond your ability.
Start to Make Expenditures Budget
After evaluating your lifestyle, you can start anew in managing your finances by making a spending budget. The budget can be made on a daily or monthly basis. In essence, you divide money for various expenses that have been calculated. That way, spending money on goods that are useless can be minimized.
Well, to make this budget, you can try using the following tips.
1. Share Money Based on Function
Start by dividing money according to function every month for more planned expenses.
To facilitate the distribution of money, you can first record all types of your expenses in one month.
In addition to certain expenses, such as electricity costs, housing needs, or transportation, data is also unexpected expenses and entertainment costs.
Entertainment costs that you can enter include gathering with friends or doing a hobby. After being recorded, you can allocate money for each expenditure function.
By recording all expenses and then allocating costs for these expenses, the entry and exit of money will be more easily controlled. You can also be more disciplined in spending money.
2. Use Two or More Accounts for the Use of Money
The money saved sometimes often makes you tempted to use it, right? To avoid this situation, you can try to place money in several different accounts.
Use multiple accounts for different functions. For example, you have a special account for savings and other accounts that are used to save for daily expenses.
The use of daily money you can also place it again in a variety of different financial accounts. For example, transportation money is deposited in electronic money or money for shopping in a digital bank account.
That way, the use of money becomes clearer and in accordance with its function. Expenditure on unexpected costs can also be reduced because money has been allocated for each need.