Spend Less

Nowadays, people are on the constant look out for ways on saving more money. To achieve such goal, there simple strategies that they can try each day of the week.

  1. People can start their week by merging their various accounts (savings, checking, etc.) into one. This allows people to monitor the flow of their money in just one page and it has also been shown that people better monitor their money when they are stored in just one place. At present, there are already existing applications that let people achieve such task.

  2. The next day, people should start unsubscribing from online shops and avoiding promotional discounts sent to them via emails. Even though these offers propose paying much less money, people are still required to spend. People should also keep in mind to buy only things that are needed and not wanted.

  3. Another way to spend less is get rid of old bills and replace them with newer ones. Studies show that people are more apt to use old bills than new ones.

  4. Saving for the future is one sound strategy to spend less money. It also ensures that a person can live with no financial worries if he makes the right decision of saving money for his retirement.

  5. When eating out, people are advised not to make the mistake of over ordering meals. One neat trick that they can try is to have some snack before going out or splitting a starter with their company.

  6. When shopping, people should check out the perimeters of the shopping area because it is there where they can find the cheaper items.

  7. People can also try the Rule of 5. Here, all the bills and necessary allotment for savings are subtracted first from a person’s monthly income. Next, a fifth of what is left is placed in a separate account made for annual spending. The rest of the money is then divided into weekly allowances that will be used for a whole month until the next salary comes in.

Build A Budget

Though there are a lot budget programs that people can find over the internet, some still fail to do it on their own. For people who want to succeed at making budgetary programs, they can use Gail’s Interactive Budget Worksheet which can greatly help them in monitoring their programs when it comes to budgeting money. To start, people should follow the listed guidelines below.

  1. First is to obtain the budget worksheet and fill all the spaces under income. Then do same for the monthly net income.

  2. Next, fill in the sources of income. Monthly salaries can be used in this category.

  3. Using bank statements and money spent in the recent months as basis, fill in the space allocated for fixed expenses.

  4. For the Saving category, divide the monthly income by 100 and multiply the answer by 5. The answer is the minimum amount that should be saved every month. Also, don’t forget to place $100 under “emergency.”

  5. Under “debt repayment,” place the total monthly debt repayment amount include the mortgages and car lease.

  6. At the bottom most line on the worksheet is the category “income-expenses.” This includes the Variable Expenses which includes subcategories for other expenses that may occur.

As a note, the maximum amount that can be spent is already indicated in the worksheet as soon as the necessary information are filled in. However, the use of such budget program will be futile if people will not exercise the utmost discipline in following the program.

Ways To Get Rid Of Debt

All people suffer from having debts at some point in their lives. No matter how much they want to pay such debts, the continuous rise in the prices of commodities hamper them from doing so. As of today, it is almost improbable to find a household that does not owe anything to someone.

To be able to get rid of debts, a person must have some sort of plan to accomplish it and ample time to put the plan in place. Furthermore, some sacrifice must be made like skipping dinners with friends and opting to stay the night than hang out with them. However, such sacrifice will prove to be worthwhile when a person finally realize his goal of having a life free of debt.

When trying to get rid of his debts, a person may start by following the listed guidelines.

  1. ASSESSMENT

Assessment is a very crucial part in paying off debts. A person must have a clear understanding of how much money he owes and he should make a list of priorities regarding the debts that must be paid off first. Some people may opt to pay the debts which have higher interest or they may choose snowball method where a person clears the smallest of the debts first before moving on to the bigger ones. Such method allows people to see the progress they make as they pay off their debts starting from the lowest levels.

  1. DETERMINE THE ROOT CAUSES OF DEBTS

Even though they are able to calculate the amount of money they still need to pay, most of the time, people have no clear idea on where they are spending their money. Treating one’s self to some fancy place a few times is sure to slowly drain a person’s pockets and before he realizes it, his debts are piling up.

Keeping an eye on where a person spends his money will give a clear picture in identifying things that are not that necessary in people’s lives and as such, may not be bought in order to save more money.

  1. BUDGET PLANNING

Yes, the good old budget planning. Budget planning is still the best way to ensure that monthly debts are paid off. Using cash is very helpful in adhering to a person’s budget plans. Weekly allowances are also recommended as long as a person can refrain from withdrawing or borrowing more money when he has already spent his allocated budget for the whole week.

  1. SEEK FOR ALTERNATIVES

Some people may be tempted to subscribe to the widely popular debt consolidation services. However, people should be very careful when considering such services because they are not free.

Another thing that a person can try is the balance-transfer credit card. Here, a person’s credit card debt is transferred to another card with zero interest for a certain period. The highlight of using such method is that a person can pay off a large chunk of his debts without any interest for quite some time.

  1. BANKRUPTCY IS NOT AN OPTION

Filing for bankruptcy should be at the bottom of the list of strategies for getting rid of debts. Not only does it hurt a lot, but it also does not necessarily change a person’s outlook in paying off debts.

  1. LET LOVED ONES KNOW ABOUT THE PROBLEM

This is especially true for married people. If a couple do have an agreement when it comes to their expenses, then it will put a strain on their relationship. Being married to a person implies working together to resolve certain problem even the financial ones.