I can give you a firsthand experience of how I managed to get my finances under control. Before I knew these secrets, I would spend many days wondering when I would rise up the career ladder to make more money and live a comfortable, stress-free life. You see, one thing that I have so far learned is that it is never about the amount of the money that one has or makes, but it is about how well they manage what they have. You do not need an expert to handle your money for you. You can do it on your own and feel the joy that comes with managing your own money; it is refreshing.
Here are the lessons that I have so far learned:
Always base your budget on your income and expenses, making sure that never at any single moment should your expenditure be more than your income. List down all your sources of income starting with your main job, part time employment - everything. Be thorough because the emphasis is on accounting for all the money that you make.
Now list all your expenses from those that are so obvious that you cannot forget like food, rent/mortgage to those you easily forget or tend to assume they are not expenses. The trips you make to play golf, the meetings you have for your social groups and the movies you watch at the theatre. Remember to set aside some money for miscellaneous expenses. Include anything you can think of that is an expense.
After you have known how much you earn and your expenses, you need to come up with a reasonable budget, work with what is within your means, avoid extravagance. Try as much as you can to get rid of the expenses that are not important. For example, you do not need to go to the theatre every other weekend, make lesser visits.
Utility bills stress many people but to escape the stress, always check your home for any shortcomings. For example, replace that traditional water heater with a tankless water heater, which consumes less energy. Repair that leaking pipe in your kitchen or laundry room. Only run the washing machine only when you have a full load to reduce energy consumption.
Your appliances could be cheating you out if a good amount of money every month. Thus, you need to get the best ones, those that are energy efficient. Luckily, the market is flooded with such. You will never regret getting rid of your old appliances. In addition, replace your heating and cooling systems and check on the insulation and the roof.
Use as much of the natural lighting during the day as possible. In addition, use LED bulbs for your home, which use just 35% of what the traditional bulbs use. Well, everywhere you look, you will find that there is so much you can do to reduce your expenses.
The author does not allow comments to this entry