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When it comes to managing your money properly, there are obviously certain things you need to do. You know you need to budget, try to get out of debt and control your spending. Actually, the issue may not necessarily be that you are overspending money unnecessarily on things; you probably just aren’t spending it in the right way. And it may not even be that you don’t make enough money, it could just be that you do not have a proper plan on how to use the money once you get it. When you continually spend money on the wrong things, your budget will not work. Read below few ways you can get to keep your budget under control and avoid spending unnecessarily.
Make Your Weekly Budget
Your budget is a roadmap. It shows you where your money should go – including the fun money you want to spend! When you budget for a smaller amount of time that’s easy to keep track of. A weekly budget is a lot easier to keep track of than a monthly one. It helps you know what you need to do with your money weekly when you get paid.
Try Using Cash Only
Having cash really helps to put in perspective just how much money you have to spend or how much money you spent on something silly. Cash forces you to think about every purchase you make. It works because it gives you defined money.
Don’t Live Above Your Means
If you are using credit or loans to get items that you can not afford, then you are probably living beyond your means and spending money beyond your budget. Scale back and make sure that you can honestly afford the new automobile and that it doesn’t ruin your budget and cost you too much beyond what you can currently handle.
Track The Money You Are Spending
Keep track of your spending by summing up the amounts on your phone. When you start to see from your phone as the total creeps up, you realize how much you are spending. And that may help you think twice about the extra box of treats you are probably tempted to toss into the shopping cart.
Save First, Spend Later
It is very important to always pay yourself first. Remember that the amount you have to spend is what is left over after you pay your bills and pay yourself. So, you should always tell your money where to go instead of it deciding for you. If you can practice saving up little by little, you will eventually be able to build a good emergency fund and can have less guilt about your spending.
Define Your Needs Vs. Wants
There are items you need or want. Yes, the hood is really cute but is it something you need or something you just want. Learn to often ask yourself with each item you buy or about to buy “is this a need or a want”.
Put Away The Credit Cards For Some Time
If you keep spending too much, you have to cut off the source at its knees. While credit cards are a good fit for some people, they are not so good for some. But if you aren’t ready to cut them up, put them on freeze for some time. This however going to require lots of discipline. If you must use credit cards, never charge more than you have in the bank to pay it off. Spend only the amount you have, not what you will receive.
Avoid Falling For Impulse Buys
If you purchase something you did not intend to buy, then you are already blowing your budget and probably overspending. And when you feel a rush to buy an item because its new, you may purchase out of impulse and emotion instead of need. Apply the three-day waiting rule instead. For instance, if you see something you want, you wait for three days before you buy it. Once the third day is up, just ask yourself if you still feel it is something you need.
Finally, sticking to a budget an be very challenging especially when you’re just starting out. However, you don’t need to be so hard on yourself. Just remember that we are all not perfect. We are all human! Even people who seem to be budgeting gurus and financial masters sometimes do have a bad month and they overspend. So relax, learn from your mistakes, and move on to doing it better.
