When it comes to cutting costs, basically everyone thinks that they will spend less money on food and clothing. Of course, there is some truth in this.
Before you start cutting costs, you need to calculate within 2-3 months exactly where your money is going.
Based on the results of these 2-3 months, when you get used to counting your expenses, you will already monitor them more closely. And after that you will need to:
- make a budget;
- strictly follow the budget items;
- daily contribute to the budget the amount of expenses by articles.
What can you save on?
When describing expense items, think about your habits.
They account for the majority of expenses, which, with an analyse, can be reduced or removed.
We spend most of our money on entertainment. Now there are many paid subscriptions in different areas of our life. Choose the ones you use every day, and freeze all the others for a while.
If you are lovers of cafes or restaurants, then you can reduce this expense item by cooking at home.
If you are a member of a church community and you need to save money, then you will leave it in order not to pay church tax. Companies like kirchenaustritt24.de can help you. You will not do anything wrong, think about the fact that you need to pay for housing and food, as well as have money for an accident.
Make a budget
The budget is drawn up monthly, preferably 2-3 days before the end of the current month. The expenditure part is based on the scheme 10-10-20-60.
At the same time, the last parameter is daily expenses – you write down the main items:
- food and drinks, household goods, lunches, clothes and shoes, large purchases;
- car maintenance and transportation costs, entertainment;
- education, home maintenance pet, home improvement;
- treatment, sports, rest and vacation, other expenses.
In the future, when you get involved in budget management, you yourself will begin to detail your expense items in order to have a more accurate picture of your spending.
The main task of the budget is to show you what you are spending your money on, to what extent and to give you the opportunity to make the necessary adjustments.
You will find out where your earned funds really flow away. With the help of a budget, you will understand how your actual needs differ from your desires.
