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.
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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.
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
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View Comments
I absolutely feel you on the plan for the year tip. Hate to admit it but this is why I'm dreading having a no-vacation year.
Hi Rose, a long term budget can help take care of unexpected expenses that might occur. I appreciate your feedback.
This is a perfect time of year to think about spending as all the holiday bills are coming in. Thanks for the suggestions - I especially like the spending diary.
Hi Elaine, I appreciate your feedback!
I like the idea of a spending diary. It’s the little things that we forget about that really add up.
Hi Alison, thanks for dropping by!
Great tips for the new year! I need to get back to a budget plan.
Hi Stacie, I appreciate your feedback.
I like your post about budget for the year and not just month. I do have to figure that out. Shopping for groceries is causing a killing on my extra money. It's crazy how much food costs!
Hi Ann, you can budget for say 6 months or a year, and make changes where necessary to consider other factors like changing food prices.
I am so glad that you stated that it's ok to treat ourselves. I think sometimes we feel that we just have to work and live to pay off bills. It's true but good to do something we enjoy.
True, glad to get your feedback!
Great tips! I have recently started tracking my spending and noticed some spots where I could be saving more money. Feels good to have a plan :)
Hi Deanna, glad you found this article useful.
Saving is hard! SALE is my favorite 4 letter word! You're right a treat in moderation should be ok!
Hi Kathleen, thanks for dropping by.
Your website is filled with lots and lots of helpful resources! I think I should start an expense diary and I will try out that app! Thank you and keep up the good work, John.
Thanks for your feedback, I think am just starting, and yet to reach my goal.
Some really great advice here John! Especially these days with many people struggling to just get by
Thanks for visiting.