Controlling your spending is one of the most difficult things to do for people. We are inundated with advertising enticing us to spend all the time and it take an extraordinary effort to not spend. However, if you are to get your finances under control and to eliminate the stress that comes from having too much debt, you need to get your spending under control. Here are some tips to help you:
- First, make a list of all the things in a month that you absolutely need to spend money on. Include your food, your transportation, insurances, rent, mortgage, car payments etc. Everything that you absolutely must have in order to survive. Be sure to give a realistic number to each.
- Second, add up your income. Take all the money you get each month from all sources for your household and add it up.
- Take the difference of your necessary expenditures from your income. This is potentially what you can save. Potentially, because there are always things that come up that will lower this sum and you must budget also for those.
- If what you have left is either low, or negative, you need to go back to your "necessities" and start to see where you can make cuts. Do you really need that $20 bottle of shampoo, or to rent 20 movies in a month? Take a hard look at where you spend your money and start to make cuts. It's hard, but you can do it. Stop buying your coffee from a coffee shop each day, make it at home, and right there you save a significant amount. Get creative! You can find savings!
- Monitor your progress. Use the WorkonIT app to monitor your savings. Record with a comment in the goal each savings you make, and watch them add up!
For some great ideas on how to find savings, take a look at How to Control Spending – Use a Financial Fast