Balance Spending And Saving

To make my expenses clear, I always have a note with me so I could tally all the expenses day by day. But I stopped doing it because it is sometimes so hassle and difficult in my part especially at night when I made a final summary of how much I spent during the day.

Anyway, that would help me to remember my expenses somehow and it help me to control spending some unnecessary things. The article I read a while ago proved me right and now I would like to share it with you.

Step 1 Flesh Out Goals

At the top of your list of money goals should be an emergency fund. You will need at least three to six months of your income to fall back on to get you through a downturn. Next, list your long-term big ticket dreams -such paying off a debt, buying a car, financing your kids education. Then write down more immediate personal and household needs and wants that you hope to purchase within the next six months.

Step 2 Aim to Save

Put 10 percent of your monthly gross income into a general savings account where you can grow your emergency fund or a retirement savings account.

Step 3 Track Spending

Stash a small notebook and pencil in your purse and note every single daily expense. Count the small stuff including candies and include the exact number to the centavo. This will give you an eye opening look at your spending habits, both good and bad.

Step 4 Tally Expenses

Set up the following categories such as transportation, personal expenses, insurance, foods and the like. If you’ve only tracked your spending for a week, multiply by four for a monthly total. It takes time but soon the financial fog will lift. You’ll see a pattern and say, “so that’s where the extra P200 disappears to!”

Step 5 Identify the Waste

Assess the ways you’re throwing away cash on little things and make that the first place you look for money to kick start your spend less save more plan.

Step 6 Take Back Money

Ax items you really don’t need much, meaning don’t buy things that are not necessary. Or substitute in low cost ways to share family togetherness such as playing board games or walking to the park. Think of budgeting not a sacrifice but as a make life better mission!


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