Miss Rona has flown her way into the lives of millions around the world with no sight of slowing down. If there were ever a time to take control of our finances, now would be that time.
There have been so many weeks I have gotten paid and after paying bills, going out to dinners, events, and random splurges I was left at the gas station scrounging up pennies and dollar bills wondering where all my money went.
Now is not the time to be looking for loose change in car seat cushions. Here’s the steps I took to get my money right!
Cut Spending Costs and Save Money
1. Understand Your Spending Habits
Before you can decide where you can cut spending costs and save more money, you first need to get a firm grasp on how you spend money. Does most of your money go to bills? Getting your hair done? Trips and live shows? Random visits to the mall? Eating out? You need to know!
Grab your bank statements and receipts, and start organizing. Use a tool, like Get Your Money Right - Budget Planner to visually identify where your money goes with each paycheck. With detailed instructions and automated calculations, figuring out how much money you bring in and how much of that money goes out on any given payday is quick and painless!
2. Analyze Your Expenses
Now that you have all your finances laid out in one visually pleasing place, it’s time to start being real with yourself. If you see most of your money on any given payday goes to buying outfits for another night at the club, you might want to question that. Do I really need a new outfit every time I hit the club? Can I finesse a look out of some clothes I recently bought or barely ever wear? Or maybe most of your money goes to groceries. Ask yourself (and be honest), am I overspending on groceries? Do I eat out more than I cook? Does a lot of that food go to waste before I can get to it?
3. Find That Sweet Spot Between Balance and Compromise
Okay, so now you know exactly how much money you make (weekly, bi-weekly, monthly) and you know exactly how much of that money goes to every aspect of up-keeping the lifestyle you currently have. You’ve gotten through the hardest part of the process!
One thing I believe strongly is indulging in things that make you happy. If the foundation to your happiness involves going to the gym or getting your nails done or going to the club, DO NOT cut these things out your life - instead, reduce/adjust. If the gym is a big expense but conducive to your happiness then consider switching to a cheaper gym plan or a new gym entirely. If you find joy and comfort in going to the club, consider going fewer times a month and pre-gaming at home to spend less money on drinks there.
But if you can cut the gym out completely, do your workouts at home, and still lead a happy life, cut that expense out! If you can live without the club, cut it out! If you can do your own nails, do that more often and save some money (shoot, do other people’s nails too, charge them and earn money to spend on an expense you’ve had to cut down on).
Play around with the amounts allotted for each of your expenses and see how much you could realistically compromise on spending, with respect to the lifestyle that you can honestly live with. And remember, you are only cutting costs and saving now, so you can reach a point in your life where you don’t have to do that anymore (unless you want to, of course).
4. Track and Plan (Bonus)
By completing the steps above, you’ve already done what you set out to accomplish. If you’d like to take it a step further and put forth a committed budgeted lifestyle, create a budget plan, set some financial goals and track your progress.
That’s all I got. For guided help on understanding your spending habits and planning out the best budget for you, check out my Get Your Money Right - Budget Planner . You got this. Good Luck!
Got the gist? GREAT. Here are some related articles that break it down even further.