Indiscriminate spending is hazardous to your financial health. When you spend beyond your budget or beyond your necessities, you can ruin your reputation for financial responsibility. As a result you credit status will be in shambles when it comes to applying for credit or for a house or automobile loan.
On the other hand, when you watch your spending and purchase those items that are only necessary for your survival and when you pay your bills on time, you demonstrate a great deal of managing your money and financial accounts.
Good money management, whether in personal or business matters, is a sign of a person or company on the road to great success in life and in business. The ability to balance a financial budget will keep you out of a web of money traps that hold millions of unassuming consumers hostage year after year.
Learning to save money isn’t as difficult as you may think. Consider the following tips and master the ability to budget your finances and take control of your life.
Maintain a Private Savings Account
Make sure you have a separate savings account apart from your main checking/savings account. This will be an untouchable account in which you can deposit a percentage of your paycheck or any other Roy ties you will like put toward a private account. Knowing that you have money saved up for a retirement, college or any emergency will give you a great sense of security.
Keep a Record of all Your Purchases
Don’t throw away your receipts until you have recorded all your purchases on a spread sheet or in a personal financial notebook. How will you be able to track your spending if you are unaware of where your money is going? When you know where you are spending your money, you can stop wasting your money on unnecessary things.
Kick Back Debt: Eliminate all Unnecessary Spending
Determine to end all unnecessary spending, including weekend movies, fast food hamburgers, buying extra candy snacks and so on. Discover where you waste your money so that you can be put it to better use. Imagine how much money you would have if you had saved only 80% of your pleasure money. Wow! Once you get into the habit of smart spending you will fill good about your new found control.
Save 20% or more of your paycheck
Refuse to let a payday go by without putting away a small percentage (20-25%) of your paycheck, especially if you are putting away money for a retirement account. You will be amazed at how much that small percentage will accumulate interest over the months and years. For example, if you are between 25-30, if you invest 10% of your income, especially if you make 50,000 or more, you will have accumulated over $400,000 by age 60. Another alternative is to invest in 401K, especially if you are at a company that offers a 401k match.
What are you waiting for! Get to saving! Mastering the budget game isn’t as hard as you may think it is. Once you get in the zone of managing your money, you will have a sense of success and financial