Extreme Makeover is a hit TV show because people love to see big, dramatic changes. It’s fun and exciting to imagine big, positive changes in our lives. You can give your financial life a big makeover too. Here’s how:
Write down your makeover goals in detail on a piece of paper and really imagine what they would be like if you accomplished them. How would you feel? What would you have to do? How would you have to act? For example, if you imagine being free of payday loans or another big debt, consider that you might have to scale back all your spending for a month or two to pay everything off.
Make a few big changes right now. Cut up your credit card so that you can’t use it again until it is paid off. Open that savings account or emergency fund. Consolidate those personal loans and set up automatic payment systems so that you can get out of debt. Make a few big gestures to get yourself excited.
Put up reminders. If you want that big promotion, put up pictures of people who are in that position. Act, dress, and work like someone who already has that job.…
You are paying twice!
Every time you make a charge on your credit card or use a payday loan to pay for an item, you’re paying twice. You are paying for the actual cost of the item and you are paying to borrow money to buy the item now. Most of us don’t think of this when we use credit cards or unsecured loans to pay for something, but often considering a purchase this way makes the most sense. Before you charge another item, ask yourself:
-How many years or months will I spend paying off this item? If you were to pay the minimum amount on your credit card, how long would it take you to repay the item. Compare this to the amount of time you will spend using the purchase. Are you willing to pay for this purchase that long?
-How much of my time will I need to dedicate to my work to pay off this item? Add up the total cost of that item (purchase price plus interest) and determine how many hours it would take at your current job to pay for the item. Is it worth that many hours of your life?…
Budget-friendly wedding ideas
Weddings – even fairly modest ones – can cost ten thousand dollars or more quite easily. Many couples and families find that they rely heavily on savings, credits and credit cards to pay for a wedding, but the trouble with this approach is that after the wedding signature loans and other debts must be repaid, leaving the couple with less cash to get started with. Here are some ways to keep wedding costs low:
Do it yourself – Many creative brides are making their own flowers, centerpieces, decorations, and more – with a little help from guests, family, and friends. This creates a very personalized touch while also saving on costs.
Rent or borrow the dress – Wedding dresses cost thousands of dollars, but many families keep heirloom dresses that can be altered and worn again. Some formal wear companies also rent wedding dresses – including new designer dresses – for very reasonable rates.
Keep it simpler – The simpler the wedding, the less expensive it is. For example, many brides are choosing local in-season flowers instead of exotic blooms for their wedding. This not only ensures a fresher flower arrangement, but also is better for the environment and the budget.…