A situation, when a family budget fails to keep up with daily spending, is quite so common.
Being wealthy is not an easy game. It takes a bit of time, effort and skills to become rich in a way. However, there is nothing extraordinary about it, and everyone has a potential for a better life. Everyone has the right tools close it hand, we just need to learn to use them properly.
If you feel like you deserve a better financial status, most likely, you do. You should be ready to change some of your personal habits and make sacrifices. Here is a kind of savings plan, which, if followed properly, would work for everyone.
- Running a household is one of the trickiest types of business. A household is a company, which has a very complex mechanism of operation and financial structure. As you run your household, you face a necessity to constantly strike a precarious balance to maximize income and minimize expenses. This kind of work requires years of experience, true devotion and responsibility.
- Run your personal account book and keep record of your spending and income.
- Reducing your tax liabilities by using your employer’s flexible spending account.
- Keep track of mortgage interest rates even after you have bought an estate property. This could help you save a lot as long as your loan is running.
- Do not spend too much on things that have a low utilitarian value (gifts, keepsakes, etc.)
- Do not visit grocery stores when you are hungry and do not make off-the-cuff purchases.
- Pay your bills ASAP, preferably using online payment services.
- Do not get hooked on credit card convenience checks, because they have high fees.
- Do not sign up to credit offers with interest payments.
- Do not take much money along when you walk outside.
- Based on the sum you earn (per day, week, month), try spending less than that sum.
- If you are trading, follow a certain strategy, be sure when it is best to withdraw and thus reduce losses. Do not invest without fully understanding how it works.
- Think well before buying an extended warranty.
- Take care of your future retirement and save a percentage every time you get a paycheck. It is advisable to rely on automatic paycheck deductions.
- Do not sign a contract without reading the terms carefully!
- Check your credit data for errors and contact your credit company immediately if there are any strange charges. Apply to Experian, Equifax and TransUnion for free reports, preferably at different time of the year each.
- Outline your overall budget and try to manage it with profit. Plan it beforehand and discipline yourself.
- Carry out any maintenance of your home appliances or vehicle(s) in due time.
- Optimize your dinner menu: food expenses are among the biggest ones.
- Rely on coupons and Internet promotional codes when possible. Do not collect coupons, which you are not going to use.
- Do not use credit cards unless you are sure you can pay off regularly. If you do have to use credit cards, make maximum payments to avoid having to pay maximum interests.
- Invest in items, which you can expect to increase in value.
- Maintain an emergency fund and use it to cover occasional and temporary financial falls instead of using payday loans.
- Do not go in for lotteries.
- Cut down on cigarettes: smoking takes a large share of your budget.
- Do not try to outbudget your neighbors.
- Diversify your deposits and allocations by investing in more than one currency or asset.
- Be free to buy a good thing from time to time (but not too frequently!)
- Avoid using emergency fund for non-emergency purposes.
- Do not float checks right before paydays.
- Choose stores with the best price/quality ratio.