Do you make it a habit of spending money you don’t
have? If you do then it’s time to stop this habit right away before you get
into trouble with your money!
Let’s face it- no one enjoys being broke but it is a
simple fact of financial life that if you spend money that you don’t have then
the financial picture for your future will be grim. Living from paycheck to
paycheck or dipping into your savings for frivolous purchases may make sense in
the short-term but in the long-term you will come to regret it. As well payday
loans and constantly relying on credit cards is not the way to properly manage
your money.
What can you do to stop this lunacy?
Know Your Money
In order to stop spending money you do not have
accurately assess how much money you earn on a monthly or bi-weekly basis and
then look at what you pay out in bills
every month. Figure out based on when each of your bills are due how much money
you have to set aside from each paycheck. Always think of terms of when your
pay periods are and not when your creditors expect their money. Take the time
to devise a sensible financial plan for yourself but leave some room for
flexibility.
Identify
Your Areas of Weakness
It is important to identify what your areas of
weaknesses are in terms of money and then to get serious about making changes.
To stop spending money you don’t have look for opportunities to save money or
spend less money all of the time. For example, brown bag your lunches for work
instead of buying lunch all of the time. To use an example, if you work an
average of 20 days every month and you ate your lunch out every work day and
spent five dollars a day if you stopped this you would save yourself
approximately $100 a month.
Other
Helpful Suggestions
Another suggestion is to cut out your morning and
afternoon coffee at work as well as the sodas you drink throughout the day. Not
only will this save you anywhere from $30 to $50 a month but your waistline
will thank you as well. Drinking soda on a regular basis can cause a weight
gain of 15 pounds on a yearly basis. This means that not only will you protect your
pocketbook but you will safeguard your health as well.
If you rent look for an apartment that is affordable
and preferably one that includes as many utilities as possible such as water,
power and heat. In terms of buying a car do you really need a brand new one or
would a secondhand one that is in good shape be just as good as a new one? Motor vehicles that are only a few years old
are much more affordable than brand new cars and they often still have that
“just new” smell and feel to them. Think about it.
Once you get into a habit of identifying where your weaknesses
lie you can make appropriate changes and swing the financial pendulum in the
direction of saving money instead of spending it. You will learn to live within
your means and you won’t feel as though you are sacrificing what you want most
to be frugal.
Image: worradmu / FreeDigitalPhotos.net
No comments:
Post a Comment