Hello,
I'll ask it again, do you know where every cent of your money is going?
If you do, then you are already on the way to being in complete control of your finances.
If not, then I do have some tips for you that could make the entire process much easier.
Firstly, it is vital to have a budget and stick to it.
The best way I have found to make one is to first write down everything you think you spend every month on regular expenses such as rent / mortgage, loan payments, credit card payments, traveling costs, groceries, utilities, maintenance, subscriptions. Next, compare this to the actual outgoings for the previous three months. Do not forget annual and semi-annual expanses such as insurance and vacations. Regular savings should also be listed. Next list all your current income sources and amounts. If you are completely honest, the result should show you if you are gaining or losing.
If your debt is going down and your savings up, then you are doing very well. However, if your debt is going up and you have little or no savings, then it is time to take action.
If you find you do not know where some of the expenditure is going, then you really need to get in control of this area. One way of doing this is to audit every last cent you spend over a three month period. Carry a little note book and wrtie down every item, no matter how small. Sit down and review these at the end of every month. You may be very surprised how much this amounts to. From my own experience, by ding this and really putting in control on it, I was able to cut my monthly expenses by at least 10%.
Once you get a handle on this stuff, you will amazed how you spent so long clouded in mystery, plus you will be far more in control of a vital area of your life.
Have an awesome week.
Malcolm
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