Sometimes we can not control the spending of money us, because we do not have a monthly spending plan or monthly budget, so we do not have the guidelines in our spending. One of the things in regulating the amount of spending is cut your spending money, especially buying things that are not too important.
At first it may seem difficult to limit spending and stick to a budget, however there are a few practical changes that you can make everyday that will cut your spending more than you expect.
There are some small things you have to do is discipline to reduce your expenses. Maybe you do not realize, actually a lot of the habits and that if you want to change it, will effect on the amount of our monthly expenses.
Firstly, alter credit car behavior. Start to pay cash whenever possible. This will help you avoid making a purchase unless you actually have the money available. If you decide to make a credit card purchase, be prepared to pay the balance off monthly. This will save a lot of money through avoiding interest charges. If you already have a credit card balance, then transfer to a card with a low interest rate. Also, find a card that does not charge an annual fee.
Another tip is to pack your lunch everyday. All of those lunch hours spent at restaurants will add up. Bringing your own lunch can save you several dollars every day, which will add up over time.
Use your cell phone during off peak hours. Some people will spend a couple hundred dollars a month on phone charges. Avoid this by making most calls during off peak times. Check with your service and plan to find out when you have cheaper or unlimited calls.
Stop throwing away the Sunday newspaper before skimming through the advertisements. Clip some of those coupons and check out the sales. This may seem tedious, but the savings are often worth it. Many stores will double or triple the amount of the coupon. This technique can save you up to 20 or 30 dollars each time you head to the food store.
Additionally, refinance. Mortgage rates have been extremely low over the past year. This has been a great opportunity to reduce the monthly house payment significantly. If you are planning to have your house paid off prior to retirement, then you may want to factor this in before refinancing.
Finally, bundle your insurance. Many insurance companies will offer their customers lower rates if they purchase multiple policies. For instance, some people use the same agent for multiple cars, and others combine their cars and house. Always keep in mind that a dollar here and there really begins to add up. Avoid the temptation of thinking that changing your spending habits wouldn’t save that much money.
So a few small things you can do to manage and save your expense. I’m sure many other things that you can write and do it myself. By saving expenses, directly will make you avoid the stress effect because your financial can not be managed well.