Updated: Feb 27
We all could benefit from making each dollar go further. Sometimes it seems the next paycheck is spent before it even arrives. Can you relate, or am I the only one that's ever been there? In today's busy world, who has time for personal finance and budgeting? What's the reason you should care, I mean you've all heard your friends say YOLO, right?
Personal finance is extremely important and the sooner you commit to making it your friend instead of keeping it a stranger, the faster all the things you want will come to you. It doesn't take hours of accounting each week to have an effective financial plan. The main reason you want to learn how to manage your finances is because they affect nearly every decision in life.
Want to go on a road trip? Gas and travel costs money. Would you like to send your children to a private school? That costs money. Do you or someone in your immediate family rely on medications every month? How about your next meal? Try paying for that in Uber credits. Your finances determine what zip code you live in, what car you drive, your quality of child care and health care, how safe the schools are where in your neighborhood, and if you can help friends or family when they need it. In some situations, it could even mean life or death. I want to equip you with ideas you can implement immediately and see an increase to your bottom line.
Stop eating out for meals.
Many people buy lunch every day, or at least one meal while on the go. There are many ways to do the math and my experience has shown me the average person can save $300 a month with this method. If you work outside of the home, 20 days a month, and spend $15 each of those days, you spend $300 a month on fast food, Starbucks, etc. Many people spend even more that $300, but that's a fair number to use for averages. What would an extra $300 a month do for you?
Start preparing your own lunch for work. Start making your own coffee. Avoid the drive through when you get off work and make a quick meal when you get home in the evening. If you absolutely must buy fast food, don't purchase the value meal and just get the sandwich and a water. I highly recommend you ditch the unhealthy habit of energy drinks. The reason I suggest this is because this type of spending really adds up. You should avoid running into a convenience store every day and making small impulse buys, . Commit to this plan, cutting back for 30 to 90 days, and you can save up to $1,000. What would an extra $1,000 do for you?
Start Your Budget Today
Many people dread the word budget and even worse, dread the idea of doing it. If you were running a company, wouldn't you regularly check your inventory and what you spend? This is bigger than running a company. This is your life and you'll never be younger than you are today.
Keep it simple. Take the time to list all your expenses. Your budget is a living work in progress, so over time you'll get better. Just do your best. Be sure to put down every single thing you can think of that you spend money on every month.
The reason for doing this is not only to finally have it done, but so you can take a look at the other things you also spend money on that may not be all that important. There's always that forgotten subscription or monthly membership you can cancel. Downsize cable packages you don't use, and shop around for your auto insurance if you've been a customer for a couple years. It never hurts to explore other options. The bottom line is for you to save money and once you get started, you'll get better and better.
Use financial apps such as: Mint, Every Dollar, and Trim
I have personally used these services, as well as guided my clients to utilize these tools for straightforward, simple financial management. Feel free to do your own research on each of these. I'll provide you the links to get started.
Mint - https://www.mint.com/
Every Dollar - https://www.everydollar.com/
Trim - https://www.asktrim.com/
You won't need both Mint and Every Dollar, so pick one and find out which one you like better. The good news is you can do your budget right from the app.
What I love about Trim is that it tracks your recurring subscriptions and helps eliminate waste thats negatively impacts your finances. In addition, they can negotiate better deals for you for services like your cell phone bill, lowering your monthly payment. Research these options, but don't wait too long because you are literally losing money every day you don't take action.
I hope these 3 tips have inspired you to feel more confident and hopeful about your current financial situation. If you can discipline yourself and cut back on spending for 90 days, I suggest you reward yourself a little, but use that money to pay off a big chuck of debt, open an investment account, or even start a new home based business. The possibilities are endless. Wealth Legion is partnered with you every step of the way, building a concrete plan for you to claim financial independence.
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