Does it seem like you never have money at the end of the week? Are you always waiting for the next paycheck to come? The problem isn’t the amount of money you make, it’s how much you spend. Many people waste money.
In some cases, those people may think that they’re financially-responsible, but that cup of $5 coffee each morning isn’t the least bit frugal. Let’s take a closer look at how to stop wasting money.
Track Your Spending
First things first. You need to be aware of where your money is going. This means tracking your expenses – ALL of them. It doesn’t matter if you purchase something at a yard sale for only $0.10, you need to write it down. The purpose of this is to know exactly where your money is going. It can be easy to have no idea where it went each month. Be aware.
Create a Budget
The next thing you want to do is create a budget. You want a budget for variable expenses. You also want to allot money for yourself to spend any way you want. You should always have money that is for fun. This makes it easier to stick to your budget. With that said, you want to be realistic about your budget. Choose a budget that works for your household.
Use the Envelope System
The envelope system forces you to stick to a budget for variable expenses. For example, if you want to spend $200 a week on groceries, you would put that amount in an envelope and use that money when you shop. Your debit cards and checks would be off limits. It’s best to leave those at home so that you have no choice but to stick to your budget based on how much cash is left in your envelope.
Think Before You Buy
You also want to think about purchases. Instead of buying that purse that’s on sale, go home and think about it for one night. If you still want it, buy it (if it’s in your budget). In most cases, you will have forgotten about the item. This can save you so much money.
We all have things that encourage us to spend money. It may be emails from your favorite store letting you know about a sale or a certain store where you spend a lot of money. Some tips are to unsubscribe from those emails and to avoid shopping at that store or at least cut back on how often you visit.
You don’t have to waste money. There are so many simple things you can do to become aware of your spending and cut back on the money wasted.