Save? Spend? Or Both?
Good money management is a mental exercise in self-regulation and focusing on the long-term. Even the most uber-organized and priority-minded people can stumble when it comes to money – how to save more of it, how to stop spending it, and how to keep doing both over and over again.
While everyone’s financial needs are different, anyone can set up a simple systems to help themselves stop buying what they don’t need and almost automatically save money they’ll need later.
Here are 5 ways you can cut costs and right by your money without much effort.
1. Understand your cash flow:
Nothing will affect your financial future more than your ability to understand your household cash flow. If you want more money to save for the future or to spend now, you have to understand your current spending patterns and habits to get there. Start by checking in on your spending weekly; that takes far less time than a monthly review, and it is easier to catch places you may have spent more than you planned.
2. Learn to say “No” by deciding on your “Yes”:
We all have dreams, so maybe think about the future and what you want for you or your family in the long run. Write down your short, medium and long-term financial goals. Whether it is a brand new car or to travel the world, learn to say no to eating out every night and yes to saving so that you can go on traveling.
3. Limit your Monthly Bills:
Money past is all the money you’ve agreed to spend at the beginning of the month – things like rent, utilities, and student loan payments. Buying a new car may not seem like a big deal if you think you can afford it, adding on a car loan to your money past comes with a major trade-off: It limits your day to day spending and it cuts into your ability to save for the future as well.
4. Open a Savings Account:
Beyond your basic emergency fund, start a savings plan by determining how much money you need to put aside each week or month to reach your goals. Open a savings account that meets your needs and where you will get the best returns on your money.
5. Plan for spontaneity:
This may sound a little contradictory, but it is essential that you build in money that is purely for spontaneous spending. If you know there’s money in your budget that is there for the sole purpose of spending it, it protects the money that you’re saving into other accounts by providing an outlet for a spur-of-the-moment decision.
National Debt Advisors consultants are here to help you every step of the way. Save your money and cut costs in order to get out of debt and reach financially freedom.