SIMPLE SAVINGS: Money managing made easy sounds better than day to day struggles
Posted By: Matt in Budget on 02/17/2014 at 09:05:04
Regardless of whether it is on your list of things to change in the New Year or if you've thinking about ways to save, spend smartly or get your financial misgivings in order, money makes the world go round and your head spin constantly.
When it comes to saving money or allotting cash in the right places, you'll undoubtedly hear plenty of the same advice, all of which is pertinent but not always treated as gospel.
The favorite is paying off your credit card debt, which sounds fantastic unless of course you're not in the position to put aside extra money on a weekly or monthly basis.
If you have a little expendable income, you should resist the urge to spend it on new clothes, video games or that expensive television you want but don't necessarily need at the moment.
The key to combating your propensity for spending your cash in all the wrong places is to simply sit down and make a list of all the right ones. Throwing money at credit card debt shouldn't be in lieu of building a savings account and putting aside money in case of an emergency. You need to consciously look at your leftover money and determine an appropriate split between debt and savings, otherwise you'll find yourself in a vicious money circle you simply can't break.
If you take your money and put it all toward credit card debt and your roof needs repaired, you'll most likely turn to that same credit card to fix it. So, the money you think is working for you by lowering your credit balances is quickly replaced by another charge on the card.
Right back to the starting point. The trick is budgeting accordingly and knowing to the penny what you're spending and what you can save.
All of that hard work and pencil pushing will be for naught, however, if you continue to make silly, inaccurate decisions like using a credit card to buy coffee at Starbucks or taking what little savings you have and spending it on a cruise you can't afford.
Those might sound like remarkably inane decisions and you'll likely tell yourself that would never happen to you, but even the most ardent financial planner slips up from time to time. No one is suggesting you shouldn't spend your hard earned money on something fun or exciting but only if you're in the position to do so.
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