Now that the year is still young, and the new year’s resolution are still at the planning stage, one area that you definitely include is on how to reduce your money expenses. As I keep on repeating over and over again, if there is one area that will prevent you from achieving your target, is spending more than you earn. It doesn’t matter how much money you are making, if you cannot reduce your expenses, you might as well just wait for a total collapse of your financial plan. The following article by Jo Mark explains the importance of reducing your expenses in order to improve your life.
As the economy weakens world-wide, people slip deeper and deeper into debt. And as they take on more debt, their personal financial situation only gets more and more bleak. But it doesn’t have to be that way. There are steps that you can take to break that cycle and improve your financial situation. Unfortunately, most people spend about 10% more than they earn, regardless of their income. And in a weak economy, this figure balloons even higher as personal income declines. When this happens, many people have problems meeting their monthly expenses.
In order to improve your financial situation you have two choices. Your first option is to bring more money into the household. This involves either finding a better paying job (which is difficult even in a good economy), or getting a part-time job on the side. But unfortunately, this is not a viable option for many people. In that case, you should look to reduce your expenses. Although many people think that they are already living on a bare bones budget, this is usually not the case. In fact, most people spend a significant amount of money each month on non-essential purchases.
By employing a good disciplined system, most people can slash their expenses by a considerable amount. In many cases, the amount of your savings can exceed what you might expect to earn with a part-time job. Following are a few examples of some of the ways that you can save money on groceries:
Always make a grocery list before doing your shopping and only buy from the list. This is probably the number one mistake that people make. Never go grocery shopping when you are hungry. Hungry shoppers tend to buy more. This mistake can easily increase your bill by 5%. Beverages can put a serious dent in your budget. By switching over from soda and bottled beverages to tap water, you can save a considerable amount of money. An added benefit of making this change is the fact that you may lose some weight. Switch over from the name brand foods to generics and store brands. In most cases, your family won’t even know the difference. By making the changes listed above, you can expect to save between 20% and 30% on your grocery bill.