Find out why saving money depends on you making a budget
Do you have a budget? If so, is it in your head? If you have a photographic memory and can keep up with your budget without writing it down, stop reading. Humor me and keep track of what you spend for one month.
You will be shocked at what the small expenses add up to. Add up the cost of the unnecessary things and multiply that by 12 months, then multiply that by 5 years.
That is how much you could have saved (and drawn interest on) in just five years. This is the very reason everyone needs a budget.
We can enjoy financial success if we can get control of those small expenses that really have no bearing on our lives.
One example is the amount of money you may be spending on lunch. Cut what you spend on lunch from five dollars a day to three dollars a day. In a week, you will have saved $10. $40 in a month… $480 in a year… $2400 in five years….plus interest.
Don’t worry. You will still be eating lunch everyday. You will, however, have saved a ton of money and that’s just on lunch. There are other areas of your life where cuts can be made.
Set some specific long term and short term goals. There are no wrong answers here. If it’s important to you, then it’s important period.
If you want to be able to pay down some debt, buy a new car, or pay for your kids to go to college, think about the little things before it’s time to pay for the big things.
A great lazy-man’s way to figure out your spend is to go cashless for a while.
Use your debit card for everything for a month, even small purchases.
Then, you can use your online banking statement to figure out where all the cash went.
lower-billss last blog post..don’t wash your car at home…take it to a car wash
Great idea. I’ll have to try that. I’ll also take a look at your http://www.billeater.com web site. Thanks for the visit.