About 76 percent of Americans live paycheck to paycheck. This means when unexpected expenses make themselves present, a loan or credit car needs to be used to pay for them. While everyone would love to avoid living paycheck to paycheck, in today’s economy it’s just not something that’s likely to happen.
Thankfully, however, you can take certain steps to ensure you quit spending the money you don’t have. In doing this, you will be able to save your pennies, building up for yourself a savings account, which will result in you being better able to handle those unexpected expenses that life throws your way.
You must first admit that you spend too much money to appropriately address the issue. After admitting this to yourself, you can then be on your way to implementing effective techniques for cutting down your spending. You have to want to change your spending habits and be ready to create a budget. If you are married and have a spouse who is a big spender, you’ll need to sit down and both agree to stop making unnecessary purchases.
Cut Down on the Places You Spend Money
Write down a budget. If you have no record of where your money is going, you won’t know what areas to cut down on. If you notice you are spending a big chunk of money on entertainment, start limiting the days you go out. Set yourself a small budget for this area in cash and once that cash is gone, you can’t go out to a movie or game. You can also try cutting expenses in basic areas like gas. For example, if you go to the grocery store twice a week, try to cut your trips down to just one. In doing this, you will save on gas expenses.
Start a Savings Account
If you quit spending the money you don’t have, then you still have to do something with the money you do have. A great place to put this money is in a savings account. When doing this, set a goal for yourself, such as $500 in three months. If you put a mere $50 each week in savings, you will exceed your goal of $500 in three months. Try automatically depositing a certain percentage of your paycheck into savings each week. Once it is in your savings account, try not to spend in unless it’s an emergency.
Repair Your Credit
Stop using your credit cards. Do you have a bad habit of charging extra clothes or things you don’t actually need to your credit card in plans of paying it off later? When you do this you are not only spending money you don’t have, but you will pay more for the item after you pay the interest and credit card fees. After you stop using your cards, you’ll want to repair your credit in case you ever need a loan in the future. Start by paying off all your current debts on time. You can learn more about credit repair at http://www.creditrepair.com.
Many people are in debt but have hopes of buying a home in the future or saving for their children’s college. The best place to start is to not spend money you don’t have. If you don’t, you will quickly find yourself overwhelmed with large amounts of debts that will take you years to pay off.
This is a guest post written by Kandace Heller. Kandace is a freelance writer. She studied Communications at the University of Florida. Her favorite hobbies are reading, writing and spending time at the beach. She loves researching new information and sharing it with others.
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