Personal Finance Advice

Do you feel like you never really have enough money to last you until the next payday? If you feel this way, you certainly aren’t alone.  There are plenty of people who feel as though their money simply does not cover all the things it should.  Oftentimes the problem isn’t that these folks need to find a way to make more money, but instead that they need to find ways to cut back on the money they spend.  Chances are high that if you take a look at where your money goes there are plenty of ways you can cut back on your spending.

The trick is to talk yourself into going without many of the luxuries that you probably enjoy every day.  Before you think to yourself, “Luxuries? I don’t enjoy any luxuries!” you should realize that a “luxury” is something you don’t actually need.  It’s extra.  It doesn’t necessarily mean you’re dripping in diamonds or having a chauffeur drive you around all day, although if these things are occurring then it’s pretty obvious where you can start cutting back on your spending.

Try these tips to see how much money you can keep in your pocket in one day’s time:

Morning:  Brew your own coffee and eat breakfast at home.  Pack your lunch to take to work and instead of buying a newspaper check out the headlines online or on TV.  If feasible, walk or ride your bike to work instead of driving your car to save money on gas as well as wear and tear on your automobile.  Potential savings: Around $20

Afternoon:  Enjoy your sack lunch instead of eating at a restaurant and if you get hungry for a snack eat something you brought from home instead of using the vending machines.  When coffee time rolls around, drink the coffee supplied by your employer or go buy a regular cup that isn’t incredibly expensive.  Better yet, kick the caffeine habit and drink water.  Potential savings:  Around $20

Evening:  Eat your dinner at home and stay in for the evening.  You can do chores around the house or read a book you borrow from the library.  If you want to have someone over, pop up some microwave popcorn and watch a DVD.  Potential savings:  Around $30

You may think that saving small amounts here and there won’t make much of a difference, but using the above scenario there is a daily savings of $70.  Weekly that becomes $490.  Monthly it’s almost $2000.  Yearly the savings reach over $23,000.  It’s amazing what happens when you stay away from restaurants and designer coffee.

Try cutting back on eating out and other expenses gradually so you don’t feel too incredibly deprived, but keep track of your savings in order to keep your motivation up.  When it comes to personal finances, little changes can make a huge difference.