Just for the sake of emphasis I’m going to spew an old cliché which is very true by the way, but because of the fact that by the time one actually has to make reference to it it’s often too late, citing it is indeed only for emphasis. This is the cliché of prevention always being better than cure, something which applies to every situation including your finances and your spending habits in particular.
It’s far better to maintain control over your spending habits than to have to reel things back in and try and seize back the control you’ve clearly let slip away from you.
By the time you’re reading this particular post though, you’re probably beyond the stage where you can put into place some plans to maintain your spending habits and not let them get out of hand. Perhaps you did plan to start off with, but we all know about how life seems to have its own plans for absolutely everything. A financial emergency or two could quite easily derail your perfect financial plan for a while to come yet, but how do you go about seizing back control of your spending habits?
Adjusting for shifted goal posts
Following some or other life event which may have caused you to feel as if you’re losing grip on your spending habits, it doesn’t help to bury your head in the sand or brush it off as if it’s something which will soon pass. It won’t go away by itself and in fact if you leave it be then it will only get worse – never better and never remaining the same. The altering event could very well have been a minor one, in which case it’s even easier to brush it off and kick it under the carpet.
Either way, you need to make adjustments for what are essentially some shifted goal posts. You need to rework your budget according to the spending power of your current income, this considering the debt you have to pay off, of course, and in reworking your new budget you have to work with real numbers in order to have the time to come for it to work in your favour. With the passage of time you will probably need to lower expenditure through a slightly reduced living standard, while any investments made gain momentum as a factor of the same time until such point at which the two worlds come together.
Use existing financial services
You definitely have to be careful with regards to your approach to this, but certain financial services exist so as to help consumers through the tougher times. Well, they were created to make the financial institutions more money through their levying of a service fee, but that doesn’t mean something like a short-term loan can’t be used to your advantage if you have a solid plan to pay it off within a designated period of time.
If you need a set of wheels to get to work so that you can continue earning a living for example, then there’s nothing at all wrong with using something like a medium-term loan.