Everyone of us, at one time as fallen into that trap of excess spending. To avoid this, you need to consider the following smarter spending steps that will inspire an overall plan and new habits that will guide your day-to-day decisions.
Budgets revolve around 3 costs: food, housing, and transportation. After you budget for these expenses, which probably will account for between half to two-thirds of your take-home pay, and factor in any debt payments, you can decide how to prioritize savings, household expenses, professional expenses and entertainment. Those flexible expenses can be scaled up and down more quickly than fixed costs like rent payments.
If you want to budget, you can simply use a smart phone app like Level money. On Mint.com you can upload your credit card account information and get immediate insight to where your money is going. You can then use that information to start saving more money. Using these online tools, will go a long way to make it easier to manage your money.
If you have plans to buy a specific item, then you need to put in those plans earlier enough and budget for them to avoid buying on instincts.
Budgeting for the year helps to put in more buffer for unexpected expenses
Having money set aside for each of your expenses makes it easier to manage and track where the money is going. Some people overlook those small and inexpensive expenditures, only to discover late when they run of cash.
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Go back to the decisions you made earlier, to pinpoint your weaknesses. Also consider the good decisions you made like doing a price comparison before buying a car.
Try to write down every single thing you spend money on for the last 1 month. Why and how it made you feel. Review the list, and see what is not supposed to be there.
Avoid signing up for any promotional email that come your way. Cancel them if you have subscribed to avoid those tempting emails with shiny catalogs.
Don’t deny yourself every material pleasure that comes your way. After hard work for your money, let it bring some pleasure. Maybe occasionally taking a meal out.
Also Read: Personal Financial Strategies to Last a Life
Simply share with your friends and get their feedback.
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View Comments
I always think that a review of priorities is very important when discussing budgets and spending plans.
True, thanks for reading.
These are great tips that I will be using this year in my life . Thank you ?
Most welcomed, and all the best in this new year.
These are great tips and advice I will be taking with me into 2018.
Am glad that you found this article a great help for your personal finance.
I agree with the idea of rewarding yourself. It helps you to stay on track knowing that you will get to spend money on something fun.
Exactly, save but keep in mind we live life in presence.
You have specified everything how to spend money and surely i will try this which will help me in saving money.
Am glad that you find this post helpful to your money management. Most welcomed.
Great post. Budgeting for the year is a good tip. I have a been using an app called prism for budgeting and it's made a big difference for me.
Yes, I too use an application to budget and track my expenses. Am able to plan well in advance. Thanks for dropping by.