How to Stop Spending Money When You’re Already Broke
March 12, 2021 | Mason Roberts
Most Americans are living paycheck to paycheck, so for years now, the question of how to stop spending money has been a pressing one for this nation.
After the 2020 pandemic hit, where most people have had their income and savings shrink, while their expenses stayed the same or increased, the question has become even more critical.
The answer, however, has been the same for years. There’s no shortcut and no easy way out. You need to set a plan and be diligent with it.
Here Are a Few Tips on How to Stop Spending Money
1. Figure Out What You’re Overspending On
Take a good look at your spending and figure out which expenses need to be outright cut or at the very least adjusted. Subscriptions you don’t often use, premium apps, eating out and takeout, brand name things – everything’s on the chopping block.
If there’s an expense you can lessen – you should lessen it. You can even negotiate some of your monthly bills (like car insurance and credit card payments). Use apps like Trim or Truebill and figure out which bills can be adjusted.
2. Start Budgeting
Budget is the #1 money-management tool. Nothing will help you figure out how to stop spending money better than a well-planned budget.
When setting it up, you need to divide the expenses into three parts: 1) needs; 2) savings; 3) wants.
Your needs take precedence over everything else. Rent, utilities, debt payments are the first things you should budget for. Next come savings, and last, but not least, the wants.
3. Automate Your Savings
When you figure out your budget and know exactly how much money you need to cover the necessary expenses – you need to start automating your savings.
This means a set percentage of your paycheck will go into a savings account as soon as you get it, leaving you with the rest to budget.
Here’s the answer to the “how to stop spending money” question – when a part of your paycheck is automatically out of your reach, you’re left with no choice but to spend less.
4. Give Yourself an Allowance
Wants are the last thing you should budget for – but you should definitely budget for them. If your budget is too rigid, you won’t be able to stick to it. Think of it as a diet – if it’s not something you can keep up long-term, you risk failing and gaining weight again.
Same with money – if your budget denies you any fun expenses, you’re likely to drop it sooner rather than later.
But if unnecessary expenses are part of the budget, you can spend money on things you want – while keeping your spending on track and improving your financial situation at the same time.
I Have No Savings Yet. What Do I Do in Case of Emergency?
Being hit by an emergency when you’re broke can feel like being hit by a sledgehammer. Here you are trying to figure out how to stop spending money – and now you have to shell out more than you can likely spare in one go.
Unfortunately, there’s no shortcut out of it. That’s what makes the emergency fund so important for the whole “how to stop spending money” agenda. It gives you a cushion to fall back on. Without that cushion, you’ll need to figure out how to get cash from other avenues.
You need to consider how time-sensitive the problem is, and how likely is it that it could escalate the problem even more if not handled ASAP.
If you’ve got time, you could try to work overtime and/or get a side-hustle to get cash together. But if time is of the essence, you might want to think about getting a short-term fast loan, like a title loan, to handle the problem immediately – and pay it off later.
Why a Title Loan?
What makes a title loan an optimal solution in an emergency is that it’s easy to apply for and, if approved, you’ll get the cash fast. And with Illinois Title Loans, Inc. specifically, the entire application-approval process takes around 30-45 minutes, and you get the cash the same day.
Your credit score doesn’t influence your approval chances, so you can apply even if your score is bad (or outright nonexistent).
Basically, any car owner who’s over 18 and whose car title is in their name can get approved, as long as there are no outstanding judgments against the title, and they have some sort of income to pay off the loan (any kind of income will be accepted).
How Do I Apply for a Title Loan?
You can easily start the title loan process online. It’s fast and convenient, which is especially important in times when the urgency of some issues simply cannot wait.
- Find a short inquiry form located on the top left of out website and fill it out.
- Wait for the loan representative to contact you via phone and walk you through the process. At this point, he/she will also let you choose a place where you could meet with a verification agent for the loan amount evaluation process.
- Take your car, your lien-free car title, and your government-issued ID to the meeting place and wait for our agent to inspect your car and review your documentation.
- Get approved and get the cash the very same day!
Get Started with Your Title Loan Today!
Doubtless to say, life is not only about fun and entertainment, and when you’re already broke, it’s crucial to know how to stop spending money. Use the given tips to learn this skill and trod a path to your financial stability today.
And don’t hesitate to take advantage of Illinois title loans when you need money ASAP. We’re always at your service, and you can get started with your auto title loan today!