The path to credit repair is filled with change. If you struggle with budgeting and impulse buying, the motivation to work with a credit repair service may be lacking. While drastic change is never easy, the time to dig deep and change your perspective is now. Consider the following factors the next time you feel tempted to splurge. The effort you make now could save you thousands in the future.
1. Do some field research.
Indiscriminate spending is easy without comparison. Sure, you bought that new flat-screen on sale, but was it cheaper somewhere else? Yes, your busy schedule means eating take-out 2-3 nights per week, but have you ever calculated the markup of a single sandwich or bowl of pasta? Be your own credit repair service by doing some field research. Look for the best bargains on big-ticket items and prepare meals in advance during busy weeks. Why spend more money if you don’t have to?
2. Pile up the useless “stuff.”
You may have more than enough “stuff” to sustain you, and yet, the impulse to buy is still there. It’s unlikely that another shopping spree will curb your habits with success. Instead, gather all the things you have bought but rarely use. Clothes with the tags still attached, unwatched DVDs, small home appliances, etc. Now estimate the monetary investment you made without a return. If that number is greater than a few hundred dollars, it’s time to change your habits.
3. Determine what your time is worth.
“Time is money” as they say in business. Spending your hard-earned cash means sacrificing hours of effort put forth each week. If you are struggling with a big purchase, adopt the practice of calculating how much time it is worth. For example, Sam is in the market for a new car. He would love to buy a 2012 Mini Cooper, but the monthly payment is $385.00. Since Sam earns $35 per hour, he would have to work 11 hours to cover the payment. Eventually, he decides to invest in used model that won’t cost him a quarter of his 40-hour workweek.
4. Consider the important things.
Short-term comforts are undoubtedly nice, but indulging too much could interfere with your long-term goals. How much do you save for retirement each month? If you have children, how do you plan to send them to college? These answers may be unclear without proper budgeting. Determine the value of your wants vs. needs; the need to change could be staring you in the face.
5. Get out your calculator.
Speaking of glaring results, there is no greater wake-up call than a bottom-line number. Get out your calculator and determine how much you spend on the extras each month. Are your expenditures topping $250? $500? Now think of better uses for your cash. Do you have credit card debt or other outlying bills? Is your savings account nearing the zero mark? Credit repair begins with smart choices and thrives by sustaining them. The time for a perspective change is now. Look closely at your financial issues and find the motivation to improve them. Time is on your side—make sure to use it.