Though money can’t buy everything, it’s true that money makes the world go round. Everywhere you go, you need to spend some cash to give you your convenience.
However, the numbers in your bank account are limited and you need to manage the ins and outs of cash from it if you want to stay afloat and still have a roof over your head and food to eat. But how do you do that? Here are some of the things you can do to better safeguard your expenses.
How To Keep An Eye on Your Expenses?
Managing your expenses isn’t a hard task to do as long as you are patient and diligent enough to record every cent that comes out from your pocket and have self-control preventing yourself from impulsively buying anything. You can do these simple tasks to not run out of cash when you need it.
Check Your Current Financial Liabilities
Make a list of all your monthly expenses. This includes utilities, food, gas, mortgage, insurances, recurring credit card bills, etc. Start by just noting down all of them but not giving it a number. Then, when you are satisfied that you have accounted for everything. Start giving them a number. It is better to use the ceiling or maximum amount for each expense. Since you are spending these things regularly, you will have a good guesstimate of these amounts. Sum them up. Now, every month, make sure that you have this amount of cash in your bank account for these recurring expenses.
Don’t Include Personal Expenses when Filing Your Taxes
What’s bothersome about filing taxes if you have to make sure you don’t include any expenses classified as personal to not pay more taxes than you should. Keeping an eye on this would be a lot to handle. As per the hundreds of people that gave their two cents on Keeper Tax reviews, checking your write-off expenses and saving money from your taxes is quite easy if you know which expenses should be classified as personal. To do that, you would have to have an adequate filing system at home.
Use A Credit Card for Your Expenses
To always keep track of your expenses, you can use your credit card as a record-keeping tool. Credit card statements don’t lie and will have every cent of purchase that you did for the month. Just make sure that you don’t go over your set budget and limit of your card. It would also be good to audit your statement to understand your purchase behavior and make changes, if necessary.
Another way where a credit card could help you with managing your expenses is you could check if your set budget or ceiling amount for each type of purchase is followed. If not, you have to do better the next time and see to it that you are following your rules.
Give A Limit To Every Expense You Make
When buying for yourself, be sure to have a number in mind when to limit your spending spree. It would be good to research what you’ll be purchasing especially when it comes with a hefty price tag. Go for quality and not for the name of the goods. Exercise control.
Yes, you should be rewarded for the hard work you put into your chosen field but control is of utmost importance if you want to stay on top of your expenses. Schedule your shopping spree and give the ceiling amount or budget for the event. If you are planning to purchase something very expensive, learn to earn it. That means you have to save for it.
Save, Save, Save
Saving for the rainy day should not be just an idiom, you should know how to practice it. Set a fixed amount that you would want to leave somewhere deep where you will not be tempted to use it. This will be your emergency stash, in case unexpected things happen in your life. A good idea is to open a savings account that would have an auto charge capability from your payroll account. This would ensure that you don’t use up all your money at any time without leaving some for your savings.
Further, you should also invest in your retirement. Life and disability insurances are essential especially if you are living on your own. But be sure to choose the insurance that’s right for you. There are a number of pre-need products out there and not all of them will be fit for everybody.
Don’t Get Hung Up With Loans
Loans are good when you have something urgent to use them on. If you just want to buy a new gadget or pricey home gym equipment. You should just save for it. The only kind of debt or loan that is good is when you can get a payback from it. Like launching an online business. It’s easy to be tempted with so many of the loans offered online and even in your neighborhood but don’t get caught up on it especially when you don’t know how to handle debt.
However, if you really need to avail of a loan, it’s better to get it from your bank or a trustworthy lender. Lenders that have a good standing in the Better Business Bureau are more likely to be credible. Also, be sure to check all the fees that accompany your loaned amount. Make sure that you understand the terms and conditions of the loan agreement before signing it. And above all, stay away from unsecured loans, they tend to have a staggering interest rate and a whole lot of fees and charges.
Managing your expenses is also hard work, but it gives you a reward when you do it right. The rewards you reap from being diligent in tracking your spending and sticking to your budget are 1) You have peace of mind. 2) You don’t run out of cash. 3) Emergency is not a mind-boggling dilemma 4) Tax filing is an easy-breezy task and 5) You will have a good financial future. So exercise self-control and always keep records of your expenses.