We all know the shock that we feel when we see our checking account balances at the end of the month. People usually are not aware that they are overspending and how they are doing it until they see the financial report.
Today, we are showing you how to get in line with overspending.
Take Everything into Consideration
Look at where you are spending your money and break that into several categories, like shoes, restaurant, transportation, housing, entertainment, clothing and so on.
At this point, you are already able to see where your money is going. By adding a total to all the categories, you will see which one is the most “expensive” one and can make the cut.
Saving money, it`s not so hard ─ well maybe it will be in the beginning ─ but it`s essential, and you need to save money while you can.
Find Your Minimum for Spending
What is your minimum that you can spend to set all your bills from month to month? This is a question that you need to answer for yourself.
Let`s start with food. How much are you spending and ask yourself, do you need to spend so much on eating out and can you decide to not eat out?
Honestly, it’s not that bad, as you can make your food at home and take it to work with you and save money this way. The plan is not to restrict yourself and have a bad life, but to save on some things while maintaining the same lifestyle.
When you get used to it, you will see that you can live without some of the spending. I`m sure that you can avoid eating out every day at a restaurant or you don`t need to drive an SUV that uses a lot of gas, as you can use a smaller car that is easy to maintain.
Do the Simple Math
I was never good at math, but this is simple math. Take a spreadsheet and calculator, add your monthly cash flow and your monthly spending, and subtract cash flow from monthly spending. If you have something left over, that is extra, and you are in good shape. However, take a look at step one and see if you can cut some expenses.
At this time, if you have 10 dollars extra, you are in the plus, and you are in a good way to save more. You paid all of your bills and expenses, and you get extra savings.
When deciding to save money, it`s always a good thing to set a goal. If you want to save for a better car or if you want to go to an exotic travel destination, it will be a good motivation for you.
Never think that you are neglecting the comfort of life and that you are restricting pleasures.
Saving money is hard at the beginning and is a step that people are avoiding. It will be hard, in the beginning, to stay home instead of going out to the cinema, but on the other hand, watching a movie at home can also be fun and much cheaper.
Moreover, you can reward yourself and once a month go to the movies or eat at a restaurant, but don`t forget that you can save money while you earn money.