Taking Charge of Your Money
Print this pageIt's the end of the month and you've just finished paying all your bills, after everything is paid and your checkbook is balanced, you see once again that there isn't enough left over to put into savings. Sound familiar? If it does, you're not alone.
Little things add up
Many of your large monthly expenses are probably fixed, such as your rent, mortgage, car, or student loan payments. But it's the variable-expense category that can easily get out of control. It's so easy to pick up a daily coffee and bagel, a magazine, or a new DVD because individually each purchase doesn't cost much.
But if you pick up a coffee and bagel every day for $3.00, over the course of a year that $3.00 would amount to almost $90 monthly and $1,100 annually. Even small expenses can really add up and cost more than you realize.
Everyone can afford to save money
Finding money to save is easier than you think. If you decided to prepare your own coffee and bagel in the morning, you could save that $3.00 a day and put $90 dollars into your 401(k) or IRA account monthly. The sooner you start, the faster the savings add up.
Control your money
Of course, no one is recommending that you eliminate every indulgence — some of these small purchases enhance your enjoyment of life. But most people have some expenses they could reduce in order to help reach their financial goals. Here are some ideas that can help you control your money:
- Write down each expense. Try this strategy for a week and keep a record of absolutely everything you spend. You'll begin to see how the little things add up.
- Create a budget. You'll be less likely to spend impulsively if you create a budget for yourself and stick to it.
- Wait a day before buying anything over $100. If you really want the item, then you'll go back to the store and buy it. But there will be times when you decide not to make the purchase, and you'll save yourself $100 or more.