How to avoid 'March Madness' spending this month

DENVER, Colo. — This month is known for “March Madness,” but that doesn’t have to be the case for your finances.

Now that spring break is here, people want to start enjoying more parts of life that require spending like concerts and events outside. Canvas Credit Union wants to remind you that you can enjoy those things without straying too far from your financial goals.

“The first step is to get a clear picture of where your money is going. Knowing what your money is doing and tracking your spending will help spot where the problem is, and from there you can make changes,” explained Olivia Orellana of Canvas Credit Union.

Just $5 a day spent on things like coffee can quickly add up to more than $1,800 a year. A smart financial decision could be to instead add a little of that spending money to your savings or put a little extra toward the debt you’re trying to pay off.

Another tip for avoiding march madness spending is the 24-hour cart rule. If you find something online, let it sit in your cart for 24 hours. This gives you time to analyze if you need that item.

“If you still want that item in 24 hours, great. But the chances are that you've thought about it and may have eliminated your impulse purchase. Anytime you can slow down your spending, you will make smarter financial decisions,” said Orellana.

• Watch how to avoid 'March Madness' spending below:

Financial health isn’t about cutting out everything you enjoy though. Orellana said to avoid depriving yourself of fun, make those things part of your budget.

“Savings can be for the good stuff, not just for the unexpected. When we plan for the things that we enjoy, we can enjoy those things more, knowing that they were planned for,” said Orellana.

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