Juggling money is a tough game, and it’s not easy to keep a handle on day-to-day expenses. If your paycheck is quickly getting eaten up, not long after it lands in your account, then you may want to make some variations. Doing so will help you reach your financial goals sooner.
Take A Look At Your Lifestyle
To budget and save money, it really comes down to discipline. That’s why you should take a hard look at your lifestyle to identify any poor spending habits. If you’re out partying all night or upgrading your phone every second month, then you may want to try and refocus your priorities.
Spend Less Than You Make
It sounds too simple really but spending less than you’re earning is crucial to managing your finances. The problem is many people try and live beyond their means and are always spending just a little more than they afford.
Often a person will get a raise or move to a more financially rewarding position, however, instead of saving more, they simply increase their spending. Doing so puts them right back at step one again.
It’s crucial to have discipline to meet your financial goals.
Use An App To Track Expenditure
If you simply can’t work out where all your money is going then consider tracking each purchase on your smartphone. There are a ton of apps that can help you with this. Every time you pull out your wallet to pay, simply pull out your phone as well, to log the transaction.
Cut Back On Money Drains
If you have any major money leeches in your life, then you may want to make a change. For example, a new car may be glamorous and exciting, but it can put a heavy load on your weekly expenses. There is the cost of repaying the loan (plus the interest on the load), not to forget insurance, registration, maintenance, fuel, and anything else that goes with it. Then by the time the car is paid off, it is only worth a fraction of the purchase price.
A similar situation can be had for other items such as new furniture or appliances.
If you can, try and choose a second-hand option rather than a new one.
Invest Extra Cash
If you do manage to scurry away some funds, then try not to leave them sitting in a savings account. The interest earned may only be enough to keep up with inflation and won’t be providing much financial benefit. Consider more powerful investment options, such as term deposits, bonds, and managed funds.
If you do plan to jump into the world of investing, then it pays to keep up to date with the latest financial and business news. You can do so by visiting the Wall Street Hedge.
Just remember, it’s best to consult with a professional if you’re unfamiliar with the different investment options.
By keeping track of your expenses and even making some lifestyle changes you can hopefully gain greater control over your money. So, consider if these key tips could be of benefit to you. By putting some of them into practice, you will be able to make your hard-earned cash go a lot further.
Theresa Todman, Managing Partner/CEO of B&M Financial Management Services, LLC . Theresa works with small business owners and entrepreneurs to assist them with financial management and creating organized systems and procedures. She specializes in bookkeeping, accounting, QuickBooks solutions, small business tax issues and consulting.
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