We are always on the lookout for a bit more money. Even if you look after your finances with a tight grip, you can still have a mini heart attack at the end of every month when you analyse your bank statements and realise you’ve spent more than your budget allows. But what is the underlying reason for this? Is it because we become complacent halfway through the month and think that a little splurge here and there won’t make the difference, or is it because we don’t plan properly? When we’re struggling financially, planning is the key to effective spending, and here is why…
Plotting Every Course
When we’re struggling financially, we can draft a budget, and follow this to the letter. But if we have our own spending habits that we struggle to shake off, then we need to keep a structure in place so that we follow it to the letter. It’s not just about knowing how much comes out of your account on a certain date, and for what, but it’s about finding other ways to make the most of your situation. For example, if you have bad credit, and you are unable to acquire the desired credit cards, you can look for the best store credit cards to build credit, so when you are undertaking a shopping trip to buy presents for family members, even though you are spending extra money that you don’t potentially have, it’s utilising the opportunities to make a little bit more money for yourself in the long run. Because we look at money coming out of our account as a negative thing, we don’t necessarily see the other options in which we can make up for this negative bank balance. Coupons and vouchers are another great example, because by purchasing essentials that are discounted or on offer, this is where you can make your money back in another sense.
Getting An Appreciation Of The Big Picture
And once you have been in the habit of looking for bargains and similar practices, you can then look at your bank statement and see how much you have saved over the last few months. When it comes to effective spending, we don’t always appreciate the bigger picture. So many of us look at our financial situation on a month by month basis, and this is usually because we get paid in this manner, but the bigger picture, and looking over a 12 month period can give us a greater appreciation of what we are wasting money on. So if you are struggling in a financial sense, and you feel that you’re not able to stretch your money any further, by bringing the magnifying glass out, and looking at how much you spend over a year, you can see what constitutes as necessary expenditure. The big mistake we all make is that we believe everything to be essential, but this is where we can make little changes in our lifestyle to get our money to go a bit further.
It’s been said before, but effective planning is the key to effective spending. And for those people who are concerned about where they are going to get the money to buy Christmas presents, looking at your overall expenditure and finding ways to cut corners here and there, will add up to a sizeable chunk of money.