Many people that are facing financial hardships are often overwhelmed because they think it is impossible to save money when they owe so much. However, with a modification in spending habits everyone has the potential to save money. Here are a few suggestions on how you can spend less and save more.
First of all, you need to write down everything you spend money on that is not a necessity. For example, coffee at a coffee shop, scratch tickets, lottery, movies etc. Then you should write down how much you spend on each thing. Five dollars on lottery a week, twenty dollars on beer, ten dollars a week on coffee and so forth.
Set up a savings account for your new unspent money. Depending on how much you spend weekly on these unnecessary purchases will give you an idea of how much money you should or can put into the savings account. Let’s say you spend an average of sixty dollars a week on unimportant items. You can either put the entire amount in the bank or split it up and put half into the savings account and the other half into your checking account to pay a little more on some bills. The other thing that might help is to add this money to your bank account at the beginning of the week or month. This way you will have less money in your pocket to tempt you to spend on impulse buying.
This does not mean that you need to completely eliminate spending money on yourself, however it does require that you spend less on yourself weekly. This is important. If you don’t treat yourself with something nice at times you may end up seeing saving money as a chore, which is not a frame of mind that will empower you to take control of your finances. Initially it may be a challenge to keep in control of your spending habits as all change is difficult, otherwise it would not be a change. However, once you begin to see your savings account grow, you will be amazed at how easy saving actually was.
A great way for you to avoid buying items on impulse, is to not look at them. Avoid browsing stores to see what is on sale. If you are going shopping for specific things, do just that. Do not get distracted in the store. Go in and directly toward the item you need and get out. Feel free to put on a fake pair of blinders when you are at the checkout. These magazines can cost you around four dollars. If you really need to be in on the gossip, go online and check out the gossip.
Also think about ways you can earn extra money. A secondary job that may fit around you day job or child care may be just the ticket to keep your head above water. There seems to be a lot of businesses rising up that talk about making money from home. If you decide to venture down this path, do your homework and check these companies out as thoroughly as you can. Search the internet for reviews of these companies to find out how they operate. In addition, you could make contact with government organisations or charities that can advise you on whether you are entitled to benefits.
About the author of this article:
alexander west holds the financial planning certificate. one of his passions is learning and teaching people about finances. you can read the rest of this article, and join others getting on top of their finances at click here
