In that article you will find some basic information on Personal Finance: Saving & Spending. Saving and spending are the two most important parts of your life and your money. Unfortunately, money does control many factors in life. It controls where you can live, what foods you can buy, and many other things. For those who spend more than they earn, they may “look well off” but certainly those looks can be very deceiving.
We call these types of people “keeping up with the Joneses” because they are deeply in debt and buying things that may perhaps be out of their price range so they can have as many cars or as nice of a house as their neighbor down the street. This can get you so far in debt that you may have to declare bankrupty. Of course this is not what the goal is.
Saving your money, even if you only make 10 dollars an hour, is very doable. Simply a ot a small bit of your income weekly and put it into a savings account. A great way to make sure you save it is to create an “allotment” that takes the money directly from your paycheck or direct deposit and puts it into the savings account and you never actually have to touch the money. You only know that it is in the savings account. Some people literally cannot save money that is in their hands. The temptation is too great. This is why the allotment for savings idea is great. Even if it’s only 5 dollars a week, saving something is the key here.
When it comes to spending money, you simply need to assess your budget. Of course you want to subtract all of your necessities such as electric, water, rent or mortgage payment, car payment, loan payments or credit card payments, and any other important bills from the total of your available money. You also subtract whatever you have put into savings and simply pretend it’s not there so you’re never tempted to touch it.
Simple as that, you can spend whatever is left out of that number when you’ve subtracted your bill totals from your available cash totals. However, a great thing to do is only spend what you need and maybe a few luxuries when you can afford to. If you have something left after you’ve spent some money, you can put it into your savings account to let it accrue. Some people have a difficult time doing this but it’s very important.
You can save well beyond what you ever planned to if you can simply control your spending. It is obviously easier said than done, as many people spend every available penny they have, and even spending pennies they don’t have and borrowing from creditors and paying interest on these things and sometimes paying 20 percent more than what you paid for it because of this interest.
Saving and spending are simple but what is really important is self-control and discipline. If you can control your spending and at least put some into savings and not delve into it, you are doing really well! You don’t have to be rich. Sometimes being rich means being in debt and buying things you cannot afford. So you buy a more modest house, but at least you have money in your pocket.