Spending money is probably the easiest thing to do particularly if it is the holiday season as prices are usually slashed, sometimes by half.
In times like these, it is even more important to keep track of spending and even more so if it involves credit.
But, how do we set limits for ourselves. Here are a few pointers to look at before you embark on your next shopping spree.
Allocate a certain amount for spending
When you receive a sudden influx of cash to spend with, such as a company bonus, it is hard to control spending when you know that there always something in the account that you have complete access to.
A good rule of thumb is to immediately place half of that amount into another account that you have your ATM card linked to.
Alternatively, you could take up a long-term insurance or deposits package which coincides with your bonus day.
In this way, you are at least achieving some level of savings while having some spending ability left to take advantage of the sales period.
When using credit card, split those purchases
Spending on credit can get out of hand the moment you think that it is a lifeline to get you out of trouble.
If you have to use a credit card, try splitting the bill so that it is less taxing on your credit and ultimately keeps the interest at a lower rate.
This allows makes it easier for you to commit to monthly repayments because the credit amount will not be as much.
Clear those commitments before going into the shopping mall
Before even thinking about making your way into the discount aisles make sure that you have already sorted out your monthly essentials.
As a guideline, half of your budget should go into those necessities such as repayments for your car, house and utilities.
For the other half, it should be a split between spending and savings, as mentioned earlier.