Do you live by a monthly budget? Are you aware of what's coming in and what's going out of your finances on a weekly basis?
While most of us have fixed costs, all the "extras" such as eating out, gym or club memberships, and entertainment can add up quickly. If you take an inventory of where your money is going, you may not only be surprised but also see areas where you can cut and save.
"I think it's important to think about the word budget, and we often think budget is a bad word but really budget is, it's a safety net and guidelines, it brings you less financial stress and more financial comfort when you say 'I am living within my budget' and you can start putting money away for savings," explained Dave Nellis with America First Credit Union.
Nellis added that people who aren't aware of how their money is going out won't know how to spend properly.
"So smart saving is really intentional saving and intentional spending," he said. "It's good to be aware of how much do I spend on a cup of coffee every day or how much do I spend on a soda every day or that quick trip to Maverik. Where am I spending my money? So yeah, go through your account and look to see what you are spending."
To start the process, get account statements from last month and check your debit and credit cards, and categorize all transactions into utilities, car payment, eating out, groceries, memberships, and clothing. Then, list out how much money you have coming in, look at the numbers, and challenge yourself to find areas where you can cut so you have more money to save or just come out even.
The FOX 13 Saving Smarter series strives to give ideas and options, but everyone should talk with a financial planner to determine the best route for one’s specific situation. Most credit unions and banks offer financial planning services for free if one has an account at their institution.
