#TuesdayThoughts to make #cents4you choose today to take control of your finances!
Doing nothing will get you no where.
If you have more month than money, or so it seems, begin today by telling your money where to go.
Step 1. FREEZE! Put a freeze on wanted items, pay only the essentials needed items – rent, utilities, groceries, cell phone, gas, car payment, insurance. Temporarily stop going out to eat (take your lunch to work), pay-per-view & other entertainment, and buying gifts. If you have a planned vacation go enjoy but take cash or set a limit on your spending BEFORE you leave!
Step 2. CALCULATE! Write down everything you spend for the entire month…you may be surprised at where it goes and how quickly you frivolously purchase unneeded items. Plan your meals and take a shopping list to the grocery store and don’t buy anything not on the list. To purchase gifts for birthdays and holidays, buy on sale and keep them in a PRESENTS BOX; you can label or wrap the gift as soon as you buy it. This will cut down on last minute purchases and save you time and money to enjoy the event with your friends and family.
Step 3. PLAN! Most months you have the same bills with similar amounts: rent, utilities, phone, car payment, insurance, groceries and gas. While some months add expenses specific to that time of year: August – back to school, Nov & Dec – holidays, Summer-vacation, April – taxes due or you get a refund! Plan your monthly budget accordingly and remember to save from DEC to DEC, which gives you twelve months to build for holiday purchases (or school supplies/clothing). Don’t wait until DEC 1 to save for holiday purchases.
Step 4. SAVE! Once you know where your money is going, now you can begin to save and set aside 3-6 months of total monthly expenses. This is crucial when unexpected costs such as a medical emergency or repairs, or if a work layoff occurs. You will find that it decreases your stress, gives you room to breathe easier, and keeps you sane! Begin with setting aside $1000, then at the end of each month set aside the leftover funds in your checking into a savings account…I recommend opening a savings account at a different bank (once you reach $1000) because it is more difficult to transfer online and allows you to reach to your nest egg amount. If you keep a same bank savings, you can then transfer large sums as your savings builds up to the other bank account. When you get a raise, automatically place the excess into savings; setup your direct deposit to split into your savings account..out of sight, out of mind!
Remember, the journey to financial freedom begins with one small step to reach a huge reward! When you are ready for a guide on your financial journey contact Cents+Ability to make cents4you!