Finding an apartment, getting a new job and receiving that very first paycheck - new renters go through a lot of first experiences during that initial year. One of the less enjoyable firsts can be landing in debt. Amidst all the excitement, renters can develop some bad spending habits that quickly leave budgets shattered and credit card bills soaring. Luckily, with a little diligence and knowledge, this common predicament can be avoided. Renters, beware these bad spending habits.
- Overextending your budget. Spending more than you make can quickly land you in a mountain of debt that will take you years to climb you out of. Keep yourself out of the hole by monitoring your expenditures, and when you reach your limit, stop spending. By simply spending within your means, you can save yourself countless sleepless nights and potentially thousands of dollars in additional penalties and fees.
- Indulging in impulses. Impulse buys are the surest way to blow your budget straight out of the water. Just because you want that new Coach purse or are trying to be nice by buying a round for the guys, doesn’t mean that these are purchases you should make. Think before you buy. Do you actually need that new handbag? Do you really need to shell out another $40 to buy a round for people that should have stopped two drinks ago?
- Choosing credit over cash. Yes, the convenience of credit cards is wonderful; especially when you’re waiting on that next paycheck. However, using a credit card when you have cash to cover a purchase just because you don’t want to pay for it is a bad idea. After all, you will still have to pay for the items or services and that price tag is going to look even less attractive when you tack on interest charges.
Spending smart is one necessary skill set that all young adults need to learn in order to stay financially stable. If you want to see what a difference smarter spending can make, follow Katya, who is taking the WilliamPaid Challenge to see how much extra she can pay toward her student loans each month. Or, take the challenge yourself and check out the WilliamPaid Simple Savings Calculator to see where you could slim down your budget.
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Generally I do not post on blogs, but I would like to say that this post really forced me to do so! really nice post. financial help
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Good to know,and thanks for the usefull knowledge.I just love it!
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