In this current economic climate, it seems like a daunting task to save money. Many people are under the impression that saving money mean depriving yourself of things by scrimping on everything, but this is not the case. There are a few easy and simple ways you can save a few dollars here and there. Just remember – every little bit helps.
So whether you want to learn how to effectively manage your income so you can pay off debt, save for college or retirement, or build wealth by investing in stocks, real estate or gold from sites like, BullionVault Italy, the first thing you need to do is monitor your spending.
Keep a spending diary
If you want to see exactly where your money is going then keep a detailed spending diary. Write down all your expenses, including even small purchases. If you do this for a few months, you will be able to see exactly what you spend your money on.
Create a budget
Begin by recording all your incomings and outgoings; you will soon be able to see a pattern emerge which will show you where you are spending most of your money. If you find that you are spending more each month than you are getting as income, then it is time to start looking at where you can cut back. Once you know what you can cut back on, you can try setting a budget for the month.
Make small adjustments
A dollar here and there doesn’t seem like much at the time, but it soon adds up. Try cutting back on small luxuries like lunches out and magazines because it is sure to make a difference.
Pay off credit cards
If you owe money on credit cards then it is worth paying off the debt from the lowest balance to the highest. In the event that the balances are close, pay off the highest balance first. Did you know that store cards normally charge the highest rates of interest, whereas personal loans from the bank tend to charge a lower rate of interest? Consider consolidating revolving credit balances into a fixed rate personal loan from a credit union or bank.
Learning to manage your money wisely is the foundation for financial freedom.
Samirian Hill, The MoneyWise Teacher, is the President and founder of BudgetWise Financial Solutions, LLC. She is a financial educator, blogger, columnist at The Detroit Black Pages and soon to be author. Samirian enjoys golfing, reading, and cooking.