Four Spending Habits You Need To Break

When we’re in a financial hole, most of us try to find a second job.

But have you really thought about where your money is going? There are plenty of people that are getting by with the salary that you have - maybe you're just spending it wrong?

Well, you're on the right track.

Recently, I started using Mint.com to track my spending.

I soon realized that not only was I spending money, but I was also losing it.

Look at your finances and make sure that you aren't simply throwing your money away.

Stop Paying Bills Late

Late fees are expensive.

They're a percentage of your bill that is added on solely because you didn't pay on time.

These fees are easy to avoid, especially in the digital age.

Credit card payments can bury you.

Some interest payments are as much as 20 percent.

Use the digital age to your advantage.

Set up email and text alerts when phones are due.

Put everything in a calendar that you check regularly.

If the bills are small and occur monthly, set up auto pay so that the bills are paid automatically.

Also, there's the old fashion way of putting money into different envelopes.

This helps you visualize where your money is going while also making sure that you put

enough money aside.

Bank fees are piling up

Nowadays, there's absolutely no reason for you to pay bank fees.

First, your accounts should never reach the minimum balance.

Install an app on your phone to alert you when accounts are running low.

Always check to make sure you have enough in your accounts, and transfer money where its

needed.

Also, make sure that you always have money in your wallet.

While this might give you the inclination to spend that money, it helps you avoid having to run to an

ATM that will charge you a fee.

If your account is shared with someone else, make sure that you are communicating how the money

should be spent and where it should be taken from.

Stop taking out loans

You've got to start saving at some point.

Stop putting your daily purchases on a credit card and then realizing that you don't have enough

money at the end of the month.

Same with home equity loans - you're continuously digging yourself a deeper and

deeper hole.

Give yourself a financial exam to determine where your money is going.

Cut back wherever necessary.

Stop going out to eat, stop driving when you can walk - everything adds up.

Most importantly, however, is to start putting money aside every time you get paid.

Put it in an account that you do not have an ATM card for.

Start saving up.

Think about it - if you save yourself 20 dollars each week, that's over a thousand dollars at the

end of the year.

That money adds up quick - and it gives you something to fall back on in case of emergency.

Overspending is a problem

Many people just have a problem with overspending.

You need to clarify just how much money you have to spend each month.

Creating a budget for things such as groceries, gas, fast food and other purchases will help you

limit yourself each month.

It also gives you a great idea of where your money is going - and places that you can cut back

on.

Mint.com is a great tool to see where your money is going.

It categorizes your spending each month, allowing you to see (in graphs and figures) where

your money is going.

Obviously, you need to eat.

But realizing that your money goes further via groceries than spending it at a restaurant.

You need to treat yourself occasionally but make sure you are tracking how much money you are

losing by going out for dinner.