Spending more than you're saving?
Are you spending more than what you're saving and steadily going deeper into debt as a result? This is an easy and common pattern to fall into, and you’ll need some careful planning and discipline to reverse it.
The first step is to create a spending plan by examining your income and expenses to determine exactly how much money you have coming in and how you’re spending it. Once you've got a clear understanding of your current budget, the challenge is to find places where you can spend less (or earn more) in order to achieve your financial goals.
1. Question Your Needs, Wants & obligations. What do you want? What do you really need? Evaluate your current financial situation and make two lists — one for needs and one for wants. As you make the list, ask yourself the following:
- Why do I want it?
- How would things be different if I had it?
- Which things are important and essential to me?
When your list is complete, reevaluate what qualifies as a need before making any purchases that will impact your budget.
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