The vast majority of people don’t go to payday loan lenders for unnecessary things. However, spending that is out of control can lead to a situation that requires a payday loan. When this happens, you need to get this spending habit under control.
Most poor spending habits come out of people not understanding the difference between needs and wants. Many don’t understand that there can be subtle differences between the two.
For example:
*People need to eat, but they don’t need to eat at a fancy restaurant.
*People need clothes, but they don’t need designer labels.
*People need a car to get to work, but they don’t need a new luxury SUV.
*People need a place to live, but they don’t need a two-story house with a three-car garage (or the cars to fill it).
These are some extreme examples that most people understand and accept as needs and wants. However, more subtle examples aren’t as easy to recognize.
For example, people need food but they don’t need to eat out at a fast food restaurant, or anywhere else for that matter. Fast food is inexpensive compared to traditional restaurants, but it still is more costly than eating at home. These small expenses can add up quickly, especially if you find yourself eating out more often than you eat at home, and that can keep you from paying off payday loans on time.
Gadgets and electronics are another area where people tend to confuse needs and wants. There are numerous situations that may require a cell phone, but there was a time not to long ago when no one had cell phones and seemed to get along fine without them. They just had telephones at home for communication.
If you feel you must have a cell phone, you most likely don’t need a smartphone or even a data plan.
The same goes for houses and cars. However, most people aren’t in a situation to be able to cut back in these areas right away, but when you are, take time to think about what you really need before you talk to a salesman.
Most people, especially those with poor spending habits, don’t even stop to consider buying anything used other than a home. However, you can get superior value out of buying things used, including cars, tires, appliances, furniture and even clothing. Even buying slightly used can mean a great deal of savings with hardly any loss in enjoyment or use of the item.
Recognizing the difference between needs and wants is the best way to curb a spending habit that is under control. Whenever you go to buy something, ask yourself if it is something you need or not? Then make a decision from your answer.
You also can change spending habits by making a list whenever you go shopping and sticking to it. If you stray from the list, make sure it is truly something you need.
Also, never go grocery shopping when you’re hungry. This will make everything you see that you don’t need harder to resist buying.
Pay cash (or check, ATM, etc.) for anything that isn’t necessary. This doesn’t mean buying new clothes with cash and then going home and paying a bill with a credit card. Don’t buy anything unnecessary when all your money is designated for bills that are due before your next paycheck.
Make sure you understand your priorities as well. Obviously, needs should go first, but list out things you don’t need but you want so that you will have an easier time figuring out what any extra money should go for.
When you are struggling to pay off payday loan lenders, you really need to consider making some lifestyle changes because when you cut out things you don’t truly need, you may be surprised how little you wanted it, especially when you are rewarded with better finances.