Posts Tagged ‘overspending’

How Much Money Do You Really Spend?

Tuesday, June 9th, 2009

Overspending is an enormous problem for Americans right now and the sad truth is, many of us do not even know we are doing it. If you are finding it hard to make ends meet at the end of the month, or you are desperately waiting for that next paycheck to arrive, you may need to take a hard look at your financial situation, your budget and how much you spend every month.

Track how much money you spend on small things.

We typically consider our rent or mortgage payments, car loans and utilities as the only items that need to be budgeted, but there are many small items that can crop up and eat away at your bank balance. These are typically unnecessary expenses, and over time, enough of them can quickly add up. Let’s take a look at how to determine how much you spend and how you can get your expenditures in line with what you make.

It’s a great idea to keep a little log book and write down everything you buy for the period of one month. Everything, no matter how small, should be noted down in your log. At the end of the month, total everything up and see just how much money you have going out the door. This is probably the easiest way to figure out what needs to be cut, since you’ll have everything right in front of you. Here are some of the most common culprits.

1. Eating Out.

Americans spend thousands, if not tens of thousands, eating out and these expenses can quickly add up. You can save quite a lot of money simply by cutting out one meal out a week, and even more if you really get serious about cutting back. Once you’ve logged how much you spend on food, you may be surprised at how much of your paycheck is missing.

2. Recurring Subscriptions.

This is a problem for many online. You sign up for something, forget to ask for a refund before the trial is over, and before you know it, you’ve got several “memberships” or recurring fees that you don’t even know about, all being taken right out of your account every month. These will add up fast, and can do a lot of damage if they are not caught in time.

3. Superfluous Items.

Even though these items are typically small, they take up a big chunk of your budget. All too often we don’t think about the little, “it’s only a dollar,” items that we see at the store. While each one may be inexpensive, when you add them all up, it can be shocking to see just how much you are spending. The log book of your monthly expenses really comes in handy to see which of these items can be cut from your budget.

By taking the time to see how much money you actually do spend, you can stop overspending before it gets out of control and starts to eat away at your paycheck.

Photo Credits: 1

Originally posted 2020-10-10 05:16:41. Republished by Old Post Promoter

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3 Ways to Increase Your Cash Flow

Friday, June 5th, 2009

If you’re finding it difficult to get by, one of the easiest ways to combat this issue is by increasing your monthly cash flow. While you may not be able to make a huge difference right away, slowly building up the amount of money that you have coming in, building secondary income streams can have a dramatic effect on your finances over time. There are many different ways that you can increase your cash flow, and although each person’s situation is different there are some universal concepts you can apply to help you increase how much money you have coming in every month.

Start your own personal business.

1. The first place to start is with your job.

If you’re up for a raise, don’t be shy about asking for it. If you can work a few extra hours and make some overtime, go for it. This is probably the easiest way to get a little extra cash flowing in every month. While it may not make you a millionaire over night, getting some extra take home pay can free up your finances a bit and make it easier to get to your next paycheck.

Before you jump in however, you’ll have to remember the basic problem of overspending so you can avoid this issue. Getting paid more is not a license to run out and start spending more money. This is however the perfect opportunity to get more cash coming in that can be used for savings or to keep current on your bills.

2. Consider opening your own business.

If you have a skill that you can exploit for more income, this is the perfect answer to help increase your cash flow. Whether you are good at fixing cars, watching children or even cooking, there is a huge market for this kind of work. Pay attention to the needs of your local community and then see how you can help fill them with your expertise. Obtain a loan through Loanio to jumpstart your business.

You can also get a second job, at least temporarily, especially if money is particularly tight. This is a fast way to increase your cash flow, even if it does require more work on your part.

3. Set up some safe investments.

Creating multiple streams of income is always a good idea, and if you have some safe investments you can make that won’t put your finances in jeopardy, this is a very easy way to increase your cash flow and help you build up extra income that you can rely on for many years to come. Investments or annuities can be very useful when you’re caught short, and the money they bring in can easily be put to good use.

You don’t have to struggle to make ends meet if you don’t want to. Simply taking the time to build up your cash flow can produce terrific results and give you the peace of mind of knowing that you do have alternatives out there to reduce your reliance on your normal paycheck.

Photo Credits: 1

Originally posted 2020-10-06 16:16:35. Republished by Old Post Promoter

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7 Budgeting Examples

Wednesday, April 29th, 2009

Remember to budget for travel, holidays, birthdays, and more as you find necessary.

When it comes to budgeting examples, one of the best things that you can do is to look at a successful budget and draw from it to establish your own. Everyone has a different idea of what makes a good working budget, and your budgeting examples need to be unique to your needs and wants if you want to get the most out of them. Here are some tips for creating working budgeting examples that will allow you to manage your money more wisely than before.

1 – Keep yourself busy after work in order to keep from overspending.

If you prevent yourself from overspending, then staying within your budget, so make sure to practice this. Find something else to do, like getting a fun second job, going back to school, volunteering, or getting into shape. The more you find to do, the less you will end up spending in the long run.

2 – Watch out for miscellaneous categories.

Make sure that you use well defined categories in your budget to capture how you are actually spending your money. If you put too much money into a miscellaneous category, it will make it significantly harder for you to track what you are spending, and it will make it significantly harder to control your spending in the process.

3 – Determine the difference between wanting and needing.

If you did not know that you needed it, you probably still do not need it. Do not buy things because they are on sale, or because you may eventually need them. If you didn’t want them or need them before they showed up on sale, then do you really need them?

4 – Budget for special occasions when forecasting your expenses.

Include gift giving occasions, eating out occasions, birthdays, anniversaries, traveling, and holidays among others. If you plan on spending money on any of these occasions, then you need to remember to include them in your budget for the best results.

5 – Do not use forms of debt to eliminate other forms of debt.

Taking out a consolidation loan may seem like a good idea, but doing this to pay off other debt is ludicrous. Why create new debt to eliminate old debt? Try consulting free debt counselor groups rather than paying in the long run with a pricey debt consolidation loan.

6 – Budget your time as well as your money.

Time is money; we have all heard this phrase. Well spent time can be just as big an investment as investing money. Take a few moments every day to figure out how you can save on bills by researching lower rates or cutting out unnecessary services. This is time spent that is well worth it.

7 – Keep track of your expenses daily to keep better control over your money.

Call your bank’s automated teller or check your online statement and get your banking settled before you go to bed. It only takes about ten minutes but it works wonders for your budget and making sure you have the money that you think you do.

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Originally posted 2020-12-29 05:58:49. Republished by Old Post Promoter

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