Tuesday, January 19, 2016

Smart Spending 101

Financial problems can happen to anyone at different stages in life. Learning how to spend money wisely can help you get through those tough times. Here are some tips to help pave the way for a more secure financial future for you and your family:

Make a Budget
A budget helps you monitor your daily, weekly and monthly expenses. With a budget, you can see how much you spend on necessities and wants. This allows you to assess your finances and identify which areas need work to help you save more and spend less. It acts as your guideline when you think you are spending too much and saving too little.

Your budget helps you stay focused on reducing expenses and increasing your savings. It enables you to assess your shopping and dining habits.

When Shopping…
Avoid buying on an impulse; you may end up buying too many things you do not need and clothes you will only wear during special occasions. Make sure to plan your purchases in advance to keep you within a budget when you shop.

There will always be a massive sale or discount within the year; time your shopping sprees during those periods to get more out of the money you spend. However, remember just because an item is on sale, it does not mean you have to buy it. Assess your expenses and determine if you really need to have a new pair of running shoes or a new mobile device.

Learn how to cook food; this is not only a money saver, but also a life skill you carry over whether you live on your own or when you move in with someone. Buying and cooking your own food saves you a lot of money compared to dining out most of the time.

Keep It Simple
Not buying designer clothes and avoiding eating at fancy restaurants will save you more money for more important things.

Keep your life simple by buying things you need and avoiding shopping sprees. You can splurge on some of the things you love occasionally to keep you happy.

Invest
Make your money grow by investing in stocks, mutual funds, real estate or other investments. Investing yields more return compared to leaving your money in a savings account where it will only accumulate a small sum because of the low interest rate.


These smart spending tips allow you to live financially free and have little to no debt. Consult with a financial planner to help you invest and manage debt.

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