Spending money is a natural and an unconscious habit. We try to teach our children that money doesn’t grow on trees. Maybe we should start reminding ourselves of that too. Spending and saving money go hand in hand. The ability to allocate your finances wisely combined with a proper savings plan will drastically increase your pool of wealth. We all know we need to save in order to prepare for the unexpected. Yet taking forth a great honest effort is typically not what many of us exercise. We tend to make excuses such as we don’t make enough money to save. Although last week you were in Macy’s buying a pair of $99 colorblock shoes that probably won’t be in season next year. We do make enough money to save. On the other hand, sometimes we just aren’t willing to give up spoiling ourselves. Don’t get me wrong, we all deserve to spoil ourselves, but we should still be wise in our spending.
Have you thought about the difference between saving money and spending money wisely? Listen up! There is a great variance and it is imperative to comprehend how they differ. This will lead to more positive practices. Saving money is the act of finding the least expensive method of making a purchase that has already been planned. This also means you will have to put forth an effort (not grab and go). Therefore, it was included in your budget and it was anticipated to be deducted from your budget. Spending money wisely is the process that goes into making a wise purchase. There are so many options for us to fulfill our pleasures, wants, needs and desires. Yes, this is a great matter, but it can also hurt us if we aren’t spending wisely. Preparing and sorting a list of essential and non-essential purchases would help you decide how your budget can be stretched. As a result, you will now have on paper what is within your means.
The more you say “no” to small expenses for things that add little value to your life, the more money you will have for better things. Keep in mind that you only have so much money…so make sure you are spending it in the right places. Many of us think that only if we were rich all of our money problems would be solved. Well the more money you have coming in, the more money you have going out. It is evident that no matter how much money you make, knowing how to manage it is the key. I am by no means a financial expert, but I have adopted several ways to save money. I became disciplined in my younger years to save over a period of time that it became a lifestyle. I am a firm believer for having multiple income streams especially in our current economy, which allows me to save even more money. Remember that spending money foolishly can cost you your money, your health, your independence, your self-confidence and your sanity. Make the most of your cash flow because a wise spender can go a long way. You should stop trying to keep up with the “Joneses”. Instead, be cognitive of your financial situation and stay in-tune with your limits.
*Diva Tip* Pay attention to what you do with your money on a daily basis. Are you getting your monies worth? If you aren’t, adjust your spending patterns.
There is nothing wrong with being frugal in your everyday lifestyle. As a matter of fact I am so accustomed to the name calling…Thrifty Gal, Tightwad, Penny Pincher, Cheapo and so on. Somehow the thought of living below our means got lost in never-never land. As I observe the news and scan the articles online, I often times read stories about families barely being able to afford the basic needs (food, shelter and clothing). So, step back and take the time out to analyze your spending routines. Don’t fret, there are many ways to continue those well-appointed traditions, but learning how to save money on those purchases is very important. You must be willing to modify those practices. Once you have come to the realization that this is critical, the baby steps can be taken to implement some of my savings ideas.
You would be surprised at how many people are unaware of their total monthly income versus expenses. Are you one of those? Creating a budget is so crucial if you plan to live economically. It is just a simple spending plan to keep you in the loop with your hard-earned money. Simply list all of your income sources and expenses. This may be a real eye-opener for many of you once you are able to evaluate on paper where your money is disappearing. So now are you wondering how you should be rationing your money? Utilizing a guide to manage and balance your income with your savings goals is very helpful. Now you will be conscious of how much money you can spend each month or pay period in each category. For your convenience I have included a guide. Keep in mind that this guide is flexible and dependent upon your personal financial situation. Also, everyone has his or her personal preference. For instance, you may have the craving to live in a more expensive neighborhood and opt to spend less on entertainment. In this case, you may feel the need to spend more. The objective of this guide is to sort your expenses and stop being a money slinger.