Analyze Your Expenses
Many are not aware of exactly how much actual debt they have at any given time. With all of your hard-earned money accessible with a single swipe, it’s easy to lose track of exactly what you are spending and or charging.
A good place to begin getting a handle on your finances is by looking at what you earn versus what you spend. Subtract recurring bills like rent or mortgage, utilities, phone, cable, insurance, credit cards and auto loans from your monthly wages. Then divide what you have left by four which will leave you with your weekly budget.
Budget What’s Left
From your weekly budget you need to account for recurring expenses such as gas or tolls if you commute to work or take public transportation. After that you have to allow for groceries, entertainment and other necessities. After that you’ll want to budget what is left for savings, investments or emergencies. That may sound like a lot to manage, but fortunately these days there is an app for just about everything.
Use Apps
QuickBooks is an expense and mileage tracking app more suited to those who may be either self employed or need to track mileage and expenses for their company. The Clarity Money Budget Manager app allows you to oversee your money and expenses by organizing your bills and expenses. The App also lets you track your cash flow, spending habits, debt, savings and investments. You can easily keep tabs on all of your credit cards to see what charges and payments are posted and when. Budget Manger will help you create a highly personalized budget that will help you make the most of the money you earn.
Write It Down
Now if you are not a fan of Apps because you just can’t trust the security of anything online anymore, you’re not alone. Start with good old-fashioned pen and paper ( the original App for everything). First, write down what you make per month (even if you’re paid weekly), then write down all of your recurring monthly expenses like rent, mortgage, insurance etc. What’s left after that goes to fluctuating expenses such as credit card bills, groceries, gas and so on. You should try to budget some money for incidentals and unforeseen expenses to avoid having to dip into savings or use credit cards. If you don’t use this budgeted allotment by the end of the month, put it into a separate savings account for either a rainy day or I deserve this fund.
Make Small Changes
Many Americans can’t afford to keep an extra $400 or more set aside for emergencies. By closely monitoring your income and expenses you’ll see where you can make changes and save some money. When every dollar counts, it’s time to think outside the box for solutions. Start with simple things like buying generic over name brands at the grocery store, more often than not the generic products are made by the big-name brand companies anyway. So why not trade in your box of pop tarts for a box of pop torts. If you just can’t live with it, then go back to the name brand, or try to find sales and coupons on the name brand items you like. But simple changes like that can start putting cash back in your pocket, where it belongs.
OPINION
Probably the most important thing you can do to stay financially healthy is to keep track of your budget. Without a budget, you have no idea where your money is going and if you are saving or going into debt. The first step in planning your financial goals should always be creating and maintaining a budget. You need to track your income and expenses so you know exactly what’s happening. In order to keep track of your debts and expenses, you need to make a list and continuously update it.
