Do you have savings goals? Are you saving up for a car? A house? An emergency fund? A lot of people reach the end of the month and realize they’ve spent the money they planned to save. A survey in late 2016 suggests that nearly half of Americans are living in this paycheck to paycheck cycle.
What can I do?
Don’t worry, there is hope. If you want to break the cycle, there are steps you can take to get yourself back on track.
Look at where your money is going. The first thing you should do is start recording all of your purchases. Look at this record to get an idea of how much you’re spending per month and what you’re expenses are.
Set goals. Decide what you want to save your money for and how much of it you need to save.
Create a budget. Next, use this information to build a budget. There are many tools out there that could help you budget your money, but you can get started with just a pen and some paper. Allocate your monthly funds to things like rent, bills, leisure, and savings.
Stick to your budget. This is the hardest for many people. It’s one thing to plan your budget, now you need to stick to it. Avoid impulse purchases and don’t touch the money you’ve budgeted for your savings.
Check out some great tools and resources for managing your money:
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