How To Avoid Unnecessary Expenses and Overspending
If you’ve only recently started budgeting and tracking your spending, you may find you still have trouble with overspending. Here’s our step-by-step guide on how to avoid unnecessary expenses.
Even expert budgeters can sometimes find themselves spending money on things they don’t need. Luckily, we know some tricks that can help you get better control of your spending habits including getting a title loan.
5 Tips for How To Avoid Unnecessary Expenses
1. Review Your Bank Statements
First things first – you need to determine what exactly do you spend the most money on and if you can cut down on the amount. While items like rent and utility bills aren’t something you can control, you’re likely to be overspending on things like groceries, takeout, coffee, alcohol, etc.
Determine which expenses are a must (like rent), which can use some revising (groceries), and which can be cut.
2. Cut Out Things You Don’t Need
Now that you know where your money is going, determine if you need all the things, you’re spending money on.
For example, do you really need cable? How likely is it that you’re watching Netflix far more often than your TV, but are still shelling out money for the cable that you barely use? As Marie Kondo says, if it doesn’t spark joy – it should go. And while she said this about hoarding stuff, it can be applied to finances as well: if you can do without something – stop spending money on it and cut it out.
3. Allocate Certain Amount of Money to Each Expense
Certain expenses cannot be cut – or maybe they can but shouldn’t be (more on that below) – but it’s possible to be more rational about them.
Groceries and clothes are often some of the main culprits of our overspending. Did you know that about 1/3 of products go to waste in an average American household? Review your fridge and pantry and take a good look at how much money you’re spending.
Also, take a look at where you’re shopping? Are there any cheaper alternatives around? Set limits to what you should be spending on each of your expenses each month – and stick to it. This should help you with overspending.
4. Give Yourself Fun Money
Sticking to the budget doesn’t mean going bare bones. That’s the surefire way of failing. If your budget is too rigid and doesn’t allow you to have any fun – it’s simply not sustainable, you won’t be able to go without at least some kind of indulgence forever.
Rather than cutting out every kind of unnecessary expense, find the amount you’re comfortable with spending on stuff that brings you joy. But do keep in mind not to overindulge (ie. overspend).
Maybe you like Starbucks coffee, even though you know it’s overpriced. You don’t need to cut it outright – but you shouldn’t be getting it every day either. Allow yourself a cup a week (maybe two, if you’re having a bad week), but no more.
5. Send Money to Savings the Moment You Get Your Paycheck
You won’t be able to save money unless you prioritize saving. If you simply live money in your checking account, you’ll likely spend it – even if you’re on a budget. Send a certain amount of money to your savings the moment you get your paycheck and start budgeting with the leftover money – not your entire paycheck.
And remember that your long-term savings and emergency fund should be separated: you need to have easier access to the latter because you never know when an emergency might hit. You can start saving for everything else after the emergency fund is taken care of.
How Do I Deal With Emergencies If I Don’t Have An Emergency Fund?
You should definitely save some money as fast as you can – but if you’re hit with an emergency and you need money on short notice, you might have to think about taking out a fast title loan.
Why A Car Title Loan?
A car title loan is the quickest and easiest way to get money. You can apply and get approved even if your credit score is bad or outright nonexistent because we accommodate all types of incomes.
If you’re a car owner, then a car title loan would be an optimal choice, since they’re a guaranteed and secured type of loan, which makes the entire process even easier.
How Do I Find Tennessee Title Loans Near Me?
Go to the title loan near me page and find the store location nearest you. A store representative will set up a meeting with you. At the meeting, they’ll assess your car, as well as ask you to provide your car’s title (it should be in your name and completely lien-free), as well as your ID to prove you’re over 18. If you’re approved, you’ll get the cash the same day.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.