Keeping track of your household’s finances can seem like a full-time job, especially in challenging economic times. If you are someone nearing retirement or planning for it, you may be feeling the pinch too, maybe you are worried about your 401k and want to change it over to see if it will benefit you more financially. You might be looking for all you need to know to rollover your 401k to a gold IRA so you have the opportunity to set yourself up (potentially) better. However, that is a talk for another time.
If you’re wondering where your money goes every month, it’s time to spend a little more time focusing on the budget. Here are some simple, easy ways to get a better handle on your finances and find ways to keep a little more in your bank account.
Disclosure: This is a guest post.
1. Track Your Spending
It’s extremely difficult to figure out how to save more money if you don’t know exactly where your money is going in the first place. Before you can create a budget or earmark money for specific expenditures, you need to know what you normally spend money on. Take a month or two and write down every household expense, including regular bills and “fun” spending. Once you know where your money goes, you can use a budgeting tool to organize and control your expenditures.
2. Prioritize Discretionary Expenses
Although some financial experts will claim that all unnecessary expenses should stop until you have no debt or have a certain amount saved for emergency expenses, it can be extremely difficult to stick to such rigid limitations; so, decide your priority. Maybe you don’t need a daily latte, but you really want to keep your monthly Swedish massage appointment (swedish and deep tissue massages both promotes relaxation and can help you unwind after a hectic month). Rather than cutting out all your fun purchases, you can decide which ones really matter to you and which you can live without. Prioritize where you want to spend your discretionary funds, so it’s easier to stick to the budget. Additionally, don’t compromise with necessary health and wellness expenses. For instance, if you don’t want to spend a lot of money on regular health insurance due to the high installment rate, you can look for programs such as Obamacare. First, go through articles with information on – What is Obamacare? Based on the data collected you can opt for such facilities and secure your and your family’s future.
3. Plan Your Meals
It can be easy to overspend your food budget when you eat out a lot or buy lots of ingredients for gourmet recipes most nights of the week. Planning your meals ahead of time can have a significant impact on your food spending. When you have meals planned and ingredients already in the house, you may not need to order pizza as often. Additionally, planning meals allows you to choose recipes that have common ingredients. You can get more use out of your weekly grocery shopping and cut down on food waste as well.
4. Switch to LED Bulbs or Solar Energy
Rising energy costs can take a large chunk of your monthly budget. While you may not be ready to move to an off-the-grid home, you can make a few simple changes to reduce your energy usage and therefore, your utility bills. Replacing incandescent light bulbs with energy-efficient LED bulbs or installation of solar panels (through a professional company that offers installations for Fort Lauderdale solar panels) can drastically reduce your home’s energy consumption. While these may cost more upfront, they can last significantly longer than incandescent bulbs, so you can wait longer between replacements.
5. Look for Savings in Monthly Bills
Along with trimming your utility costs, you may be able to find more savings in other monthly bills. You can consider refinancing your home to consolidate debt. Try negotiating a better deal on your cell phone or cable by calling your provider. You can also contact a local insurance agent to see if you can get a better quote on your home or auto policy.
Successfully managing your household finances can be easier when you start with a few simple steps. Tracking your spending, planning meals, and cutting your utility bills can help you save more and feel more financially secure.
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