Before you indulge in reading this if you are probably need to keep an open mind to the methods that are laid down on the article. Personal finance has finally got the deserved attention that it deserved. Before the recession people were not so keen on their personal expenses.
This however changed when the economy took a down turn which left many people having to start all over again because the banks as well as corporations that they had invested in had all collapsed. So it is has been apparent that we need to take care of or personal finance. One of the things that dogs most people is that we have a lot of expenses that will reduce your salaries to nothing. So how do you reduce your personal expenses?
Making a monthly budget
Having an estimate of what you are spending and what you also expect to spend is very important to make sure that you do not overspend and get broke before the next pay day. Make a list which you can go through with your family to see what is relevant and irrelevant and through this you can make a budget.
While making a budget is one thing adherence is also important if you are going to reduce those expenses.
In this time of age it is really hard not to get into debt, which we must agree whether it is for education or the mortgage. Debt is not bad so long as you can service it but in most cases when you take a loan you will have to pay interest which makes it expensive as the monthly payments will be high. So you need to make a ask yourself if whether you need to enter into debt in the first place so as to assure if it’s worth it.
Dealing in cash
The sole reason for this is because people tend to use credit cards which have the effect of increasing impulsive buying. This could see you spending a lot of money which you will have to pay for. Delay in payment of the credit will lead to penalties which you will have to service. That will certainly be an unnecessary expense. As for parents you should reconsider giving your kids credit cards as am sure they are not conversant with the expenses associated with them.