25 Jul 6 Tips to Get Your Spending Under Control
The financial advice you receive from the television gurus and social media stars may or may not work for you. It’s easy for them to shout down their directives when they already have millions of dollars in the bank. The problem is, everyone is in a different stage of life—absolutely everyone. Not one single person has the same factors affecting their financial future.
These tips will give you a starting point that actually does work for everyone.
1) Determine Your Budget Style
Everyone has a different idea of what “financial freedom” is. You may prefer to pay off everything as soon as you possibly can, which leaves you lean for several years but gives you plenty of ways to save later in life. Or, you could prefer to sock money away in savings, while stretching out the payments on your home, car, or other big purchases.
On top of your budgeting style, you also have several different options for keeping up with your money. Maybe you prefer old-school methods like spreadsheets and calculators. You may also like the latest apps that do all the hard math for you. Whatever you prefer, you’re not wrong. Don’t let anyone tell you that you are.
2) Learn How Much You Earn
Whatever your income may be, you must always remember to subtract taxes, Social Security, and any other benefits you may pay for. And don’t forget the cost of working. That leaves you with a fraction of what you think you’re being paid. If you’re creating a budget that allocates more money than you’re actually earning, you’ll end up in the red every time.
3) Track Your Expenses
Do you know where your money goes? If you’re not tracking your expenses, you can’t keep tabs on every dollar. Wouldn’t you love to know where that $20 disappeared to? Start paying attention, and you’ll regain control over your spending.
4) Set Small Goals
If you do want that extra television, a new car, or a vacation, don’t go into debt to get it. Instead, set a savings goal and buy that luxury item when you can actually afford it. You can set up sub-savings accounts with your bank for this purpose, or use one of those handy websites we mentioned, like SmartyPig.
5) Identify Big Goals
In addition to the little things, you’ll always have big financial stressors hanging over your head. You may not have the means to pay off credit card debt or college loan after saving for a few months. You certainly won’t have the nest egg you need for retirement. Knowing what you’re facing gives you a better idea of what you should be saving.
6) Find a Financial Advisor
Beyond the basics of savings and reduced spending, you may need some help growing your wealth. There are plenty of DIY websites and apps out there, but they’re not easy to customize to your specific needs.
A financial advisor can take a look at your current situation, take your budget style into account, and provide some options for growing your current assets. The earlier you begin planning, the more financial freedom you can attain later in life.
To learn more about the services we provide, reach out right away. We look forward to helping you attain financial freedom.