If you get puzzled when you look at your monthly credit card report thinking where all the money is, you are not alone. Due to the regular surveys about 20% of people spend more money than they earn. And this can seem ridiculous, but today it’s a great problem and reverse side of living in credit.
Some people often rely on financial assistance of loan companies such as SterlingStore, even to cover everyday needs. But here comes the problem, as such financial unions are created to provide help in case of emergency, but not use it every day. So we can determine definite dependence of people that should be changed.
If you are among such people that can’t control their spending and used to live in credit, you should learn the next tactic that will help you to begin new life within your own means.
You need to see what items you are spending money on, so write down every purchase you make. To create more clear picture you should divide all spending on categories and sum up the spending every day. In the end of a month you will see how your money disappears. And with such information it will be easier to reduce spending and control them. You will eventually understand how stupidly you waste your money and will begin to appreciate it more.
Get Information in Order
Today you can find a lot of free applications that help you to control spending. And it’s up to you to choose a mobile app or just a small notebook to keep all your expenses. The matter is to save all information about the money spent. Moreover if you use an application, it’s much easier to see data divided by date, category or other necessary features.
Having a track of spending it’s a first essential step to making a budget. When you realize how much money is spent on each category, you can create budget for the next month determining the amount of money you can spent. This can also be seen as a game, because you can try to spend less to fit your limits. The other good side of controlling spending is a possibility to begin saving, so don’t forget to use saved money for really important goal.
Cash or Debit or Credit
There are different opinions on this topic depending on personal preferences. However if you can’t stop wasting money with your credit card, the best solution is to have definite amount of money for each day in cash and spend no more than you have.
But if you can control yourself with spending, you should use your card. This is more convenient and you can also set an alert for definite amount spent each day. Moreover you have a track of spending in your monthly card report. So this gives you extra advantages above cash.
This is the purpose of your spending tracking. You should review your expenses each evening and think of your satisfaction got from these purchases. If you understand that you have simply wasted your money and have no happiness from this, tomorrow it will be easier to spend less and more thoughtful.