1: Write down every cent you spend.
Keep a notepad and pen in your pocket and carry around with you everywhere and track your spending. From a cup of coffee in the morning, the groceries you buy every week, to a spending spree at the mall or on Steam. Every Cent Counts!2: Make a budget based on your spending.
Once you have Data from your note taking, compare it to how much you make per month. If you are spending more money per month then you make… you need to rework your budget.One way to be happy with your budget is the have Play Money! Here is an example:
Car Payment: $xxx
Electrical: $xxx
Water: $xxx
Food: $xxx
Gas: $xxx
Play Money: $xxx
Play Money is money that you use for things that are fun, Movies, Videogames, Toys, Going out to dinner, ect.
Make a budget and Follow it like a WHILE LOOP. While you have your income, only spend what you need to and save the rest; If you run out of Play Money, stop spending.
Find out ways to shave off a few cents here and there if you want more Play Money. The more information you have, the more you understand about your own money, the better off you’ll be.
3: Avoid credit cards!
Credit Cards might be important in terms of functionality, ie, renting a car, getting a hotel room, having a mortgage, ect. But, credit cards should NOT be used for actual spending. Cash Is King! You need to avoid using your credit card as if it is real money…Because credit cards aren’t real money!
Only spend the money you have in your bank or in your hand, because that is money you truly have and should truly spend and save! If you want to avoid Debt, use credit cards ONLY when they are 100% required for a specific task, and make sure to follow Step 1 and Write Down what you spend using that evil little plastic bully.
