Keeping track of your day-to-day spending can be a difficult task. There are some people who will take the first steps on this journey, but let the planning aside. The big problem is that this disrupts the plans in the long run, since only with a good control of expenses it is possible to have extra money to realize dreams.
Do not limit the budget by period
The first point to not spend all the money you have (and sometimes even what you do not have) is to limit the expenses of each period. Set, for example, a maximum weekly value. Then you can separate this money into 4 envelopes for the month, using one each week. Believe: this simple action is very effective! When you leave all your free balance in your account, you end up spending all the money before closing the month, and going into the red.
Do not control your expenses daily
An ice cream, a soda, and a magazine at the newsstand: that’s not a budget issue, right? Wrong! By adding up these small expenses, it is easy to see that, from grain to grain, the bag of expenses soon fills up. For simplicity, use a spreadsheet, software, or an application to record all your expenses, regardless of the value. That way you can keep up with the day-to-day expenses without suffering, and learn to control the impulses. In the end, save for the simple fact of monitoring your expenses daily!
Do not set goals
How much do you intend to save? What value do you want to save per month? These questions show how important it is to set economic goals. By setting a goal, you not only get motivated to achieve it but also know if you are on the right path or not. Begin, for example, by thinking:
- in total you want to save on the month;
- in the value destined to investments;
- in eliminating interest for delaying the payment of bills.
Do not try to reduce fixed expenses
Have you ever considered whether one of your goals is to reduce your total rent? But then you can think: it is impossible, because this is a fixed expense! If you pay too high with this or other more stable expenses, a good request is to look for more economical alternatives. Reductions in rent, internet, subscription to newspapers and magazines, telephone and cable TV may be contemplated. Periodically review these payments and seek to reduce those you use less!
Do not be prudent with credit
It is important to analyze your options, figuring out how and when to use credit in a healthy way. How about not immediately calling a credit card when making a purchase? Before, see if you have cash discount! So you save money and still avoid accumulating a new installment. And pay close attention to the amount that will come in the invoice, so as not to compromise your budget, okay?
Also be cautious before acquiring any type of loan. If you are buying a house or a car , for example, do a detailed search between banks and compare with the acquisition of a consortium , since the difference in rates and the value of the plots can be huge.
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