Find your expenses exceeding the money you make? Leave all the rest aside, as you are about to learn how to manage your expenses like a pro as you read on.
We often find ourselves to be the kings and queens of the world we live in when the salary cashes in. That is when nothing feels too expensive anymore. That is when getting that pair of shoes or that extravagant techno device does not feel too outside the comforts of your financial blankets. But then your salary vanishes without a trace by the time you reach month-end.
So what went wrong? Why is it that you fell short of funds at the end of the month? Your salary seemingly should have sufficed you to be fine all month long.
How to cut wasteful expenses the smart way?
It is not surprising to note that this happens to the best of us. And this is a result of lack of managing your finances well. You would not realize how often you spend, but if you do not keep a check on it, it would leave you shockingly bankrupt sooner than you realize.
In order to make you pennywise, we have enlisted a few ways that help you track your money in a better manner.
Record your expenses
This may seem like a task, but it needs to be done on a daily basis. Keeping a track of weekly expenses may be hard, especially if memory is not your strongest suit. Note it down. No matter how big or small that expense was, you need to make a note of it.
From the bills you paid to the donut you craved out of the blues; all of it goes into a monthly record book that you must maintain. This would, at the end of the month, show you all the things you spend on: including the unnecessary expenses you indulged in and were, in all reality, better off without.
Once you lay down your expenses, it will be interesting to note that people spend quite a hefty share of their money on food outside. Restaurant bills catch up with your expenses two paces faster than you notice.
To counter this, try making food at home. You will notice that the collective cost of getting the ingredients and making your own food is still lesser than that one dish you order.
Yes, it is something that requires slightly more efforts than just dialing up a number and having food materialize at your doorstep just like that. But that is what is expected of you if you are trying to be careful with your expenses.
Nip the bud
Quit bad habits. Smoking is an evil that damages your health and your financial structure as well. To quit smoking is to say hello to some extra bucks in your bank, as you would know that cigarettes are not cheap. Abandoning nicotine makes your lungs and your pockets happy.
But we do understand your fight against smoking addictions and the fact that they are not easy to quit. Try e-cig as an alternative if it is difficult to quit smoking. E-cigs are comparatively less harmful than smoking cigarettes. They work well in satisfying your nicotine cravings quite efficiently.
What’s more – They come with refillable tubes which last you longer than cigarettes thereby cutting your expenses by more than half.
Smaller steps lead to larger distances covered
You might think that adding one dollar in your piggybank a day would not add too much. But if you consistently do that, you have 7 dollars at the end of a week and 30 dollars at the end of a month, which now is a considerable amount, right?
Savings is essential. It does not matter how small your amount is, you need to make the effort to save that buck. Sooner or later, such small efforts will manifest into a bigger amount and trust us when we say this; your total savings will eventually astonish you.
Avoid the Starbucks coffee and try to carry your home brewed coffee to work. Saving 4 dollars a day leaves you with $1200 at the end of the month, and that just came by you shunning your regular expense.
Opt for cash
Studies reveal that having your credit cards handy leads to you spending more. Rather, opt to go all cash. Having cash on hand puts you at a limit. You would not want to buy something when you see that your wallet is not going to allow that expenditure.
Managing your expenses is only has easy or hard as you make it be. In the end, you need to have an eye out for such small things. Because in the end, the rule works both ways: small steps count. It depends on you if you wish to lead those small steps towards expenses or savings.