If you are looking to save some money then the first place to start is looking at where you spend your money and how you can reduce it. I was in this situation last year and after a chance meeting with an old school friend Ram Chary who is now a financial professional I was inspired to start focussing more on my monthly spending. After just a few months of trying hard and focussing on my spends, I was able to bring down my expenditure each month and put myself in a much stronger financial position. If you are looking at doing the same, then here are some great tips which you can follow.
Track Your Spending
The first step to reducing how much money you spend each month is to first understand where your money is going. It can be hard to estimate just how much money you spend and so I would recommend that you use a phone application which allows you to track how much you spend each day. With these apps you simply type in every time you spend money and at the end of the month you will receive a report which shows you just where your money.
Ten Second Rule
The ten second rule is one of the best ways that I have found to cut down on frivolous spending. How it works is this, whenever you see something in a store that you want to buy, pick it up and hold on to it for 10 seconds whilst you consider how necessary this purchase is. It may sound like something slightly strange, but I can honestly tell you that after doing this for a week or two, you will be amazed at just how many items you put back on the shelf.
Cut Down The Bills
You monthly bills such as rent, gas and water will always be the mostly costly spends which you will make during the month. It is important however that you don’t just accept these to be the way that they are and you can work out ways to reduce how much you need to spend each month. The best way to do this is to spend a day calling around all of your providers to ensure that you are on the cheapest tariff. You should also look at comparison websites which will be able to tell you whether or not you are paying the cheapest price. If you have found a cheaper price on your electricity for example, call your provider and find out if they can match the price, if not you should switch over to the cheaper provider. Do this for all of your bills, you home phone and internet, your gas, water, mobile phone contracts and your electricity, you could save hundreds of dollars each month from doing this.
The key to reducing your spends is to understand where your money goes and then putting a plan in place to cut it down or stop to altogether.