Like most families you probably want to right your ship and get on an even financial keel. The best way to do this is to establish a regular plan for savings and put it in a dedicated account. By learning to spend less money you will be able to build a savings cushion that will help you weather any storm.
One of the basic principles of sound financial planning is having a savings account. But unless you actually have a plan on how to fill it, it will sit there, empty, month after month. Consider the benefits of a savings account. Having money in the bank is one of the best ways to protect your family from a financial disaster. Having a savings account will help you plan for the fun stuff too like vacations, so you can avoid credit card debt.
But just how can you go about building a savings account? There are two ways, and work best when used together. Spend less and make more money. If you simply making more money but don’t work on your spending plan then you can easily find yourself spending all of these newfound money and then some. By focusing on ways to spend less, you will be able to build the habits that will help you save money no matter what your income level is.
Here are some tips on how to decrease your spending.
How to Spend Less Money
Putting yourself on a spending diet can be much like any other diet – failure rate is high. So don’t see spending less as deprivation. See it as a game. Think about all the ways you can save money and challenge your family to join in the game. Here are some ideas.
Keep a List – Never tell yourself that you can’t have anything. Instead, list out all the things you want to buy – especially if you’re shopping. Keep the list handy and each month, pick something to “save for” and buy cash. You will find yourself making smarter purchases or deciding that you really didn’t need the item at all.
Go Shopping in Your Closet – Take the time to declutter your drawer and closets and build a wardrobe out of what you already have. If you get rid of old, too small or too big clothes, you will be able to see what you really have.
Coupon Savings – When you go grocery shopping and use coupons or your loyalty card, it tells you how much you saved, both on that trip and the year to date. Deposit those savings in your account instead of “spending it.”
Track, Track and Track – One of the best ways to take a look at your spending habits and what you buy is to track everything you spend on for a week or two. Take a small notebook and write down what you spent your cash on. Go back over credit and debit card receipts and see what you bought. Look at the whole picture and see what your biggest and smallest expenditures were and see what can be trimmed.
Make Luxuries Special – There’s an old saying, “A luxury once sampled, becomes a necessity.” Are you paying too much to get your hair done? Are you hitting the nail salon too often? Can you cut your cable bill by going to the library to rent movies? Could you live without a cell phone plan? Look through what you’re spending on and spread out those visits to the salon or the movie theater. You will learn to savor the money and time you do get to spend on luxuries when they are truly special.
Spending less money doesn’t have to be painful. It takes some awareness and at the most, becoming mindful of how you spend. It never means having to say no forever to something you truly want. But it will help you build your family’s financial future – something that truly is priceless.
Moms, want more tips on how to spend less money and manage your family’s budget? Then click here for your free book – HotMama Secrets – You on Fire – Life Design for Moms. Go to http://www.hotmamasecrets.com now for your free guide.
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