Hi everyone, I am Amy Matt. I see my life through a frugal lens because there was a time in my life when my finances were going crazy and I had no clue what to do! That’s when I started exploring the personal finance dimension. I am happy to be here today @ Winning Back.
“Either you are a master of your money or a slave to it. Use your mind and have fun,” says Sharon Lechter, CPA, and co-author with financial guru and New York Times bestselling author Robert Kiyosaki. The following eight suggestions will set you on a new, smarter path to dealing better with your money.
Make A Budget
Yep. You have heard that one before. So now is the time to finally do it. Just try it, if only to achieve a snapshot of what you’ve been missing.
A budget is all about getting your finances under control. It is about understanding how much money you make, and understanding where it is going. It’s brainy because it requires an intelligent effort to make an honest analysis, and face the fire. It also places you above 66 percent of the population (De Groote, 2013) who do not budget.
Accountants, and accounting firms like ForthsOnline in UK have been witness to the harms of ignoring this crucial step. Poor spending habits, and not taking care of your finances can make things ugly, quickly.
The Internet is teeming with tools that you can use to get your budget arranged.
Find some free tools at www.mint.com/free, and www.manilla.com.
Lists are simple tools that build discipline. By thinking about and writing down what you need while on your shopping trip you will avoid impulsive purchases, which add up over the long-term, and increase your personal transaction average. Filling a list can also save you on fuel costs. You won’t be going to the store so often for forgotten items, will you?
It’s brainy because it requires forethought, and a disciplined decision to take account of what you have, and what you need. A disciplined shopping trip will make you
feel more secure in your finances, and therefore in yourselves. On a side note never go grocery shopping when hungry.
Time To Pack A Lunch
The money you will save from packing lunch for work will add up quickly. Given that eating out for lunch with your colleagues is a good way to network, if you are feeling a pinch in the wallet, the $30 to $45 per week average expense can be cut in half with a bag lunch. That leftover money can go to reducing your debts, or become part of a different section of your budget.
It’s brainy because bringing lunch from home has other benefits, including healthier eating which has numerous positive effects – inside the workplace, and out.
Eating out is such a large expense that it garners another mention. Vending machines are expensive. Even more costly than that are convenience stores who are charging an average of $1.19 for a single candy bar. Keep snacks on you at all times to curb the impulse to grab a quick bite.
It’s brainy because it requires forming a habit of throwing a snack and a water bottle into your purse before you leave the house. Stashing, and keeping the snack supply stocked at home and at work becomes a life habit, and will save you thousands.
Do you have email subscriptions for newsletters, sales alerts, and ads from your favorite retailers, and stores? There is a link within every message, often in small print at the very bottom of the email that allows you to unsubscribe. Unsubscribing is a step in the process of getting out of the mindset that shopping a sale for something you do not need is saving money. It’s not saving money because money is going out of your pocket.
It’s brainy because even if you trash or ignore the majority of those emails, it only takes one to get you into the store and impulse buying. Taking care to avoid temptation is smart.
Buy It Used
The value of the majority of merchandise declines rapidly once it’s been taken out of the store. If you shop thrift stores or the occasional yard sale the quality of the items often surprise you. In a thrift store it is the job of the employees to sort the good from the bad, and place the good items on the racks.
U.S. News and World Report (2012) has a segment on thrift that lists 16 items you should never buy new, in case you want somewhere to start.
Buying used is brainy because it takes a conscious decision to drop out of the consumer mindset of good things are only good when new, and save yourself considerable money by shopping second-hand.
Take A Second Look
There is a good chance your services can be renegotiated to a smaller bill. Cable, mobile carriers, and Internet providers have several options available to fit within your budget. If they do not have other options consider either switching, or cutting off the services altogether. That extra few dollars a month can go a long way to helping you live more comfortably. Consider switching from cable to Netflix, and Hulu subscriptions. Added together they are a mere $16.98 per month.
To keep you utility costs down mind the lights. Turn off all unnecessary lights and appliances. Consider using energy friendly light bulbs. Plug the leaks in your windows. Put a stopper underneath your door. Just the smallest bit of extra insulation adds up to dollars saved every month. Tape the joints of your ducts to seal any leaks. This will also reduce your heating bill.
It’s brainy because it requires you to take measure of the effect of a burning light, and spurns you to action on things that have escaped your notice for years. It helps you think differently about how you live, and empowers you to take control of your expenses.
Renting has become a huge industry. You can rent anything from hedge clippers to home entertainment. Thanks to the rental industry you can forego innumerable expensive acquisitions until you have properly saved enough to buy them.
It’s brainy because renting allows you to test the merchandise without worrying about returns, warranties, and the big hole in your bank account.
So . .
Whether you are hurting financially, or just looking for ways to cut back your spending the previous eight suggestions will provide results you will notice. The trick you will have to worry about is what to do with the money you save. Stick to these eight suggestions and you’ll know the best use for that money.
De Groot, M. (2013, January 3). New Gallup poll shows two-thirds of Americans do not budget | Deseret News. Retrieved March 17, 2014, from http://www.deseretnews.com/article/865581100/New-Gallup-poll-shows-two-thirds-of-Americans-do-not-budget.html?pg=all
Kossman, S. (2013, July 10). 10 Ways to Cut Your Spending This Week – US News. Retrieved March 17, 2014, from http://money.usnews.com/money/personal-finance/slideshows/10-ways-to-cut-your-spending-this-week/13