Many people spend their lives being in financial addiction, they are used to spend all the salary and then live in waiting for the next paycheck. If you can recognize yourself, but you want to change this situation, it is the right time for you to think about your finance. The first and one of the most important steps you should do is to make a simple calculation of money you earn and money you spend. When you can make such a budget you will be able to control your financial life.
You should not be afraid and begin with these easy steps:
1. Determine your income. You should make a calculation of all income that you have. Do not forget your second job, money for a child or some other benefits you have. Just sit down and make a list of all money you get, than just make a sum of it.
2. Count your spending. For many people it can be the hardest step – to see how much they really spend. You can just not notice how much money you spend on coffee every day, but all this makes your budget. You should spend some time every evening and write down all money you have spent during a day.
It can be difficult for a beginning; however this will help you to prevent unnecessary spending. In the end of each month you must also calculate all money spent on utilities and other house needs, include the taxes you pay. When you have such a list of your monthly spending you will easily see if your income covers you’re spending. And you will be able to reduce unnecessary purchases.
3. Control your spending. Now you have done the hardest job, and you can easily play with your budget. You see a list of all items, products and services you pay for, so you can understand where you spend too much. If you go out in restaurants too often, it is better to think about cooking at home. Also you can reduce spending on your car just riding a bicycle during weekends. So when you spend an evening thinking about your finance, you will understand where you can reduce unnecessary spending and how you can save money just not going out for meal once a week.
4. Make an emergency fund. There is one important thing that you should understand. It does not matter how much you earn, you should make some savings. Also it is better to make a habit to pay for yourself. In such case you will not be dependent on anyone mood or salary rate. However if you have some unexpected monetary problems you can easily contact cash advance direct lenders only and get quick financial assistance. This will not hurt your budget, but you should plan your next month according to the repayment and interest rate you must pay off.
5. Follow your budget. If you have done a great work during all month and now you have a wonderful budget, where you have listed all your income and spending, you just need to follow it. But this can be another hard part of the plan. You should not make any changes or follow your minutely desires. First month you should be very serious and strict to yourself, and then you will understand all the benefits.