New Year’s Resolutions for Better Spending Habits

February 5, 2020

1. Make Forward Planning Your New Habit

Knowing what you’re likely to spend before you need it is one of the most effective ways of managing your money. Planning events, holidays and even smaller occasions such as meeting up with friends or going to the gym means that you can predict how much you will need at the start of each month. Though life can be unpredictable, there are ways we can plan to make it a little more manageable.

2. Make Extra Payments

Even if you can only afford to pay a token amount towards your outstanding personal or salary loan, every little helps. Making a small additional payment in top of your agreed monthly amount can actually help to boost your credit rating over time. Once you’re in the habit of doing this, it will become second nature and you’ll be surprised at how quickly it makes a difference to overall loan or credit card amount.

3. Resist the Urge to Splurge

Impulse buys are rarely a good thing, despite what advertising may have you believe. If you are tempted to make a purchase in the heat of the moment, at least take some time to consider whether you can justify the cost at that point in time. Though you don’t enjoy the carefree sense of abandon that comes with splurging, with the wealth of online marketplaces available, you can almost always find what you’re looking for at a fraction of the top price.

4. Bargain Hunting

The main issue with bargain hunting is the time it takes. But like most things in life, you get out what you put in. Browsing second-hand shops, charity shops and ecommerce sites can be a great way to find the products you need at a discount price. For those who use salary loans in the Philippines, its savings like these that can make all the difference. Having patience and a keen eye for sales are essential, as is the ability to compare prices before making a final decision. Always resist the urge to pay the first price you’re offered, unless you’re certain it won’t be beaten by the competition.

5. Sharing and Joint Ownership

This is now a popular option in parts of the USA and Europe, especially among younger people. Shared ownership of large purchases means you can enjoy the benefits of something like having access to a car, without having to cover all the expenses yourself. Joint ownership of housing is also becoming more popular as it can be much cheaper than renting, while also providing the owners with a sense independence and status. If you are considering shared ownership, you should always ensure you’re legally protected and that any agreements are made in writing.

6. Re use, recycle and make do

Though we’re encouraged to replace and upgrade as much of our products as possible, doing so can be extremely expensive. For those who already have personal loans or who have needed to use salary loans to make ends meet in the past, re using or recycling old goods is a cost-effective alternative to constant spending. Repairing old electronic items, repainting furniture and using cheaper alternatives are all habits that you will be pleased you adopted if you are trying to save money. For families, passing on old clothes, unwanted gifts or electronic items that are no longer used means you can save a fortune on new purchases.

7. Cancel What You Don’t Use

Whether it’s that gaming subscription you forgot to cancel when the free trial ran out or that music streaming service you only use once a month, the chances are, you’re paying somebody for something you don’t really need. Take a look through your direct debits to see what comes out of your bank account automatically. Other than loan repayments and other essentials, work out how much you’re spending on automatic monthly payments. If you haven’t been to the gym in months, be honest with yourself. Are you really going to get there? Or is it time to bite the bullet, save some money and just do some exercise videos at home? Subscription based payments are this centuries biggest economic trend and they won’t be going away any time soon, which means keeping track of them is more important than ever.

8. Sell What You Don’t Need

This is something many people don’t do as they convince themselves that old phone or console might be worth holding on to for a while. Inevitably, when you do decide to do some spring cleaning, you realise the value of all your out of date electronic items has plummeted to practically zero. Get into the habit of selling old and unused items as soon as you can. Whether you use the extra cash for loan repayments, or some extra spending money is up to you, but we recommend a little of both if possible. Technology moves faster than ever now, so never get too attached to phones, laptops, tablets or anything else that is likely to need upgrading in a year or two. The second-hand marketplace is booming and taking advantage of this as both a seller and buyer means that you can ultimately make your money go further.

9. Make Borrowing Your Last Option

Taking out a salary loan in times of need is something many people have done when they feel as if they have no other options. However, some people will borrow from lenders in the Philippines without properly examining any other potential avenues. Downgrading a car, moving to a smaller house, selling unwanted or luxury items are often preferable alternatives to borrowing against a high interest rate, but are regularly overlooked by consumers who need cash quickly. Making sure you’ve done everything you can to raise cash before you decide to take out a personal loan is always advisable. Even if borrowing is inevitable for you, knowing that you’ve raised as much as you can through other means allows you to make an informed, rational decision.