How to Conserve Your Money

Some of our visitors are interested in strategies they can employ to better conserve their money. Here are some helpful hints to help you reduce your cash flow problems.

Watch out for Spending Leakages

We often hear our visitors complain that they have no idea where all of their money goes. They get a paycheck, but it seems to vanish before they know it. Usually, if this is the case, some sort of spending leakage is occurring. By leakage, we mean superfluous expenses that drain your income, sometimes without your even realizing it. For instance, do you have memberships that you don't use or subscriptions to periodicals you don't read? Do you eat out on a regular basis? These seemingly small expenses are sometimes the culprits behind a need to borrow.

Budgets Are Unavoidable

If you're having money troubles, which most of our visitors are, a budget is an absolute necessity. If you don't already have a budget, get busy creating one. Getting started is simple. All you have to do is keep track of all of your spending for 30-60 days. Some individuals find that just tracking their expenditures helps them save money because they become more aware of their habits. After you keep track of your expenses for a time, add up your total expenses and compare it to your total monthly income. If you have a negative balance, you need to identify areas to reduce spending.

Set Limits and Abide by Them

After you have identified spending categories that you can reduce, set weekly or monthly limits on what you buy. Remember that a budget is a work in progress. You can always adjust your limits if they turn out to be impractical. Once you find limits that work for you, stick with them. Also make sure you're allowing for some sort of savings plan. Experts recommend that you save at least 10% of your income.