How do I Train Budgets in Hard Economic Times?
- 1). Stop using credit cards. Use cash as often as you can to save money on interest or added charges and unnecessary spending.
- 2). Save money little by little by making changes to your lifestyle. One way to train yourself to stick to a budget is by doing it slowly at first to get into the habit. After saving all your excess money, put it into a savings account for hard economic times in the future. Ways to save your money include limiting the amount of times you eat out at a restaurant instead of packing a lunch or cooking at home, renting movies instead of going to the theater, borrowing books and DVDs from the library instead of buying them and riding a bike and walking to save money on gas.
- 3). Live within your means. Avoid living in a house or apartment that takes more than 28 percent of your income. Reduce emotional spending and stay on track with your budget to get through a tough economic period. Emotional spending is when you feel that going out and buying something will make you feel better as a sort of retail therapy. For example, if you have a rough day at work, going out to buy a new article of clothing might make you feel a little better about your day. The tie to your feelings is emotional spending.
- 4). Look for bargains (coupons or discount deals) if you want to treat yourself.
- 5). Use extra money to pay down debt. When the debt is paid off, you will be able to take any excess money and put it into a savings account.
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