Are you making these 3 Costly Mistakes with your money?
With our current economic conditions, we need to watch where our money goes and find more ways to save our hard-earned money. Especially since we recently started a new year and many people received a raise and took home less money. I want to show you three ways to find more money you already have and stop making costly mistakes.
Mistake #1 – Not knowing where your money is going.
What to do instead: Document your spending for at least 30 days. We all have went on frivolous spending binges once in a while and felt the reality after the fact that we didn’t have any more money or a bill came up that we forgot about. Documenting what you spend daily helps you to realize where your money goes, what you do and the value of the items you spend your money on. In other words, is that $7 spent on a coffee and muffin really worth it every day when you look at the cost over a month or a year? Yes you do need to eat, but you can eat better for a lower cost. Documenting your spending allows you to correct where you are, what you do and the direction you are going.
Mistake #2 – Not knowing/liking a budget.
What to do instead: Get Over it! We need to understand that having a budget is not like having a leash around our neck. A budget is a guardrail on our road called life. How can we set up a budget? Documenting your spending is a start. Write down on a piece of paper or in your favorite spreadsheet program, List out/document your take home pay and all your expenses. Set your budget with the expenses and the amounts you currently have. You may find extra expenses from what you documented from your daily spending logs. Stay with the budgeted allocations for each item and re-adjust each month if needed as the expenses will fluctuate, especially with kids. When you see that you can build more funds to grow without changing your current budgeted items you will get energized to continue.
Mistake #3 – Not believing you can save more money.
What to do instead: After documenting your spending, you will see where your changes and savings can occur. When we don’t know where our money is going, how do we find out? We document it. If we don’t know where we are, we check our GPS or (old school), we look at a map to get our bearing, where we are and the direction we need to go. Documenting our spending shows what we spend our money on and that if we set up a “budget” as guard rails on our road, we see the items we can reduce or “adjust to help better our financial situation. Yes this does mean we have to use that bad “D” word, Discipline.
The best part about all this is that if we are off track a bit, we can correct our current situation. After all, you didn’t get off track over-night, it took some time and it will take some time to get back on track. There are options to improve the current and future situations.
By Bob Brumm – Speaker, Author, Encouragement Engineer
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