In today’s current economic environment, it’s extremely important to manage your personal finances wisely. It’s very easy to overspend and end up in debt without even realizing it. Many people start out every year with the admirable plan to set and follow a budget. A few weeks into the year, money starts to leak out, and often you don’t even realize it until it’s too late.
As Erin Lowry of US News.com points out, you need to stop your money from going down the drain, by plugging the leaks. First, track every penny you spend. Frequently people forget out their little daily expenses. Purchasing soda or snacks from the office vending machine every day can quickly add up to as much as $1,000 year. If you want that soda or snack, make sure it’s accounted for in your budget. Second, be smart when buying food. Think about the last time you went grocery shopping. Did you take a list and only buy what was on it? In a time where everyone is always on-the-go, quick unplanned trips to the grocery store are common. Often we buy more than we could ever eat, or we buy without pre-planning our menus. This creates unintended waste. Then we check our refrigerators and find the food we bought has gone bad, so we have to throw it out. It’s the same as throwing $10 bills directly into the trash can. Plan before you go grocery shopping to easily plug this leak. Finally, manage your debt wisely. High interest rates on debt can make it difficult to pay down. Plug this leak by managing your spending and not incurring additional debt until you pay off your current balances. If you have credit card debt at a high interest rate, balance transfers can be a good option if you have good credit. If your credit has some blemishes this often isn’t an option. An unsecured loan or debt consolidation might be a good option for you. For free assistance in finding what option might be best for you, contact AmOne for assistance.
Learn more by reading Erin Lowry’s article “How to plug your budget leaks” over at the US News and World Report website.