Stop overspending on your entire life. Understanding and being conscious of where your money is going is the first step in financial independence.Tracking your spending can lead to knowledge of how your money is being spent.
It helps to see in which areas you are spending too much and to stop overspending. After taking a good look at where you are spending your money, you can then make a plan to stop overspending.
1. Use cash.
Having a set amount of cash for the category that you tend to overspend on will give you a limit to how much you buy. Limits are not restricting, don’t think of it that way.
Having a budget allows you to allocate specific amounts of money to the categories that need it. You can name $123.78 for the electric bill or $75 for date night.
I love goals. I love to set them and achieve them. There was a time where I would just set them and never follow through but then I learned how amazing it feels to achieve them.
If you are constantly thinking about how you need that just released Michael Korrs purse because that’s what makes you look successful – even though you have only been out of college for a few months.
Sinking funds are like mini savings accounts that you create for things or expenses that you know are coming. For example, you might add $50 to your Christmas sinking fund.