I came across this interesting article posted on MSN’s Personal Finance section titled 5 reasons to try a 2-week spending freeze. As the title would suggest, it encourages readers to take two weeks (or another amount of time of your choosing) and avoid actively spending money. That means you can still spend money on basic necessities like food and gas to get to work and other important appointments. The intention behind this exercise is to determine how much money you are spending on non-essentials and realizing those savings to either pay off your existing debt (if you have any) or build an emergency fund for that inevitable rainy day. Speaking of debt, for some people, the situation may not be so bad, where they’d be able to pay it off within a few months. But for others, paying off their debt may result in setting up a GoFundMe, for example, to ask for donations or asking friends/family for some assistance. Either way, managing finances is important, as it can reduce the risk of getting into debt and being financially unstable.
You may even be able to make a smart financial decision with payday loans online when you have your debt sorted. However, you should only do this if you have a good monthly income. This way you will easily be able to pay back the money, including the agreed interest rates. If you don’t have a stable income then you may end up missing payments which will increase the amount you have to pay back drastically. If you’re already having this issue then you might need to look for a company that can consolidate payday loans to make it easier to pay them back.
I have to admit that this concept really appeals to me especially since I tend to spend a lot of money on eating out and other wasteful beauty rituals (eyelash extensions, manicures, and pedicures). While I’m not spending myself into the red, I’m definitely going to try a spending freeze to determine exactly how much money I’m wasting a month and decide to do something more productive with the money.
I’ve placed a link below for those of you interested in putting the kibosh on budget busters like restaurants and that morning coffee. Be sure to leave a comment letting me know how your spending freeze is shaping up and how that’s helped you get out of debt or save for something important! If you’ve been embroiled in debt, have No Credit and are looking for solutions to get out, there are debt consolidation solutions available to people in such situations.
Here are some interesting tips from the article:
To start your spending freeze, you will need to do the following:
1. Decide where to put the extra cash you’re saving
2. Plan meals for every day of your spending freeze and stock up on ingredients.
3. Assess your other essential items (i.e., toothpaste/toilet paper) and stock up on anything you might need in the next two weeks.
You can check out the article here: http://money.msn.com/how-to-budget/5-reasons-to-try-a-2-week-spending-freeze