Make A Little Bit Go A Long Way
Life is expensive, and there are no two ways about it. Trying to stretch the pennies when consumerism is desperately trying to convince us to part with them is like fighting a losing battle. So how, in this day and age, can we make a little bit of money go a long way? Well, it isn’t necessarily about couponing, shopping sales, or haggling with utility companies. It’s more about creating firm foundations to work from. If that’s piqued your interest, keep on reading.
Know where money is going before it comes in
We all have a basic idea of where our money goes each month, but that might be to the nearest ten dollars, not the nearest cent. With a comprehensive budget, we are able to know exactly where each cent is going. Not only does this give us a far greater control over our finances, but it’s even proven to encourage you to reign in unnecessary purchases. For security purposes, it’s also essential to keep a close eye on your incomings and outgoings, as you might never notice any suspicious activities otherwise. If you know exactly where your money is meant to be going before it even enters your account, whether it’s rent, bills, or into a savings account for treats, you’ve got far greater control over its flow.
Cut back on financial drains
We all have a few financial black holes that we might not even know exist, but when you’re trying to keep a tight hold on the cash, it makes sense to plug these holes. Debt is one of the main drains, and paying back a high-interest loan or credit card repayment can be a huge drain on resources. There is tons of info on debt relief programs available online, so if you’re struggling with debt, or even if you think you’ve got a grasp on it, be sure to have a look. The quicker you can pay off any outstanding debts, the sooner the money you earn belongs to you. And while you’re at it, check your bank account for any payments you don’t think are necessary. Magazine subscriptions you no longer read, a Netflix account you don’t bother using, or a gym subscription when you rarely go – the odd $30 here or there might seem like nothing, but it can really start to add up.
When you have a greater control over your cash flow, you can start encouraging that cash to bring in more cash. Any surplus can either go into a short-term savings fund for luxuries and emergencies, or you can invest it in a more long-term scheme. This money then gathers interest, and you can keep on paying in, until you have money to buy a home, help your kids through college, or secure your retirement.
If you’re in a bit of a financial pickle, it’s time to stretch the finances. Making a little bit go a long way is about getting the groundwork for sensible spending.