One of the biggest things I come across as a Financial Planner is people telling me that they spend too much. This is an issue for people across the country. Even people who have a high income address their concerns to me about their out of control spending habits, but the big question is “how can you get your spending under control”.
Here are a few tips on how to control your spending.
List out your goals and priorities
The foundation of any financial plan is to make sure you know what you want to spend money on. Ask yourself what the most important things are to you. Are your goals to save for a child’s college, buy a new car, or even pay down debt? With whatever goal you are working towards it is just important to have a list of items you plan to spend on.
Create a spending plan
A spending plan should be simple and easy. Once you know how much you make on a monthly basis, list out your fixed expenses such as rent, car payment, etc. Look at your plan and see how much you can set aside for your priorities. Make sure it is a realistic number, you must leave some money for entertainment and fun, hey, we all need to have fun once in a while.
Make sure to implement the plan
If your goal is to pay down debt, then make sure you increase your monthly payments so you can reach your goal, if it is to save more or invest, then make sure you open the right accounts. Too often people do not implement their plans, the longer you wait the harder it is to reach your financial goals.
Review and Check you plan
Things change all the time; it is important to review your plan every so often. You might get a raise, reach your goal. Life happens so it is important to stay engaged in your financial world to make sure you stay on track.