Everyone wants to save money, but the truth of the matter is that few of us know how to do so correctly.
We tend to budget, spend and have income, but they rarely come together in perfect harmony as far as being able to either stay afloat just to pay your bills or even think or consider having a savings account for emergencies or that proverbial nest egg to put toward retirement or anything that arises on the fly.
But the real issue might not be your income, your lax budget or the expenses you’re putting forth on a daily basis. Sure, if you’re tracking system leaves a lot to be desired, and you aren’t sure how much you spend or what you’re savings plan looks like, then you’ll have to get that under wraps quickly and turn it from flab to fab and have it running much more efficiently then it is now.
The accountability element of this discussion can’t be undersold in the sense that your buying decisions might doom you from the start, and if you aren’t making sound purchases then the best budget or the highest income in the world isn’t going to do much to save your downward spiral that are your spending habits.
Spending money starts with knowing what you make, and that in turn (if you're having a true progression) leads to knowing how much you can spend or if a particular buy is best for the little business that is called your financial future.
For instance, if your income just covers your expenses, but you desperately need a new car, you might be, according to the dealership and banks, might be in line for a $40,000 vehicle, which would be put you at a payment goes above and beyond what you truly can afford. That accountability means you’re not inclined to buy and you’ll choose to go, for example, with a used car rather than being enticed by the sparkle and spectacle that is a brand new one.
Accountability also starts with your significant other or a friend if that applies. The new trend is an accountability buddy, similar to a person who keeps you honest and forces you to go the gym. This person is all about making sure you can call them before you buy or you’ll make it a point to take them shopping. They’ll ask you specifically if you can afford something or if you really need it.
No matter the method, you need to be honest with yourself and make the best decisions possible toe sure your money isn’t working against you.
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