It is easy to spend more than you had planned. Using credit cards can become a bad habit once annual percentage rates go up and drain your bank account. Especially after a holiday spending spree, you may feel overwhelmed when bills arrive. Decide to organize your finances so you continue to enjoy your life without paying for it through the nose.
Step 1
Track what you spend for a month. Keep all your receipts and organize them in an accordion file. For example, save all your gas receipts; remember to ask for receipts when you pay in cash. Also, keep track of daily incidentals such as coffees you get on the way to work and snacks from the doughnut truck in the afternoon.
The idea is to get a realistic picture of what you are spending and on what.
Step 2
Settle on a workable budget. After looking over your receipts, decide how much money you want to spend. For example, if you spend $5 to $8 on coffee every day, do you want to cut back and get a coffee once and not twice a day? Would it be awful to sip a cup at home before you go to work instead to save $25 per week, $100 a month or $1,200 a year?
Step 3
Be a bargain hunter. Go online and shop for sales for larger-ticket items such as computers, cameras or TVs. Look over the Sunday ads to compare--many retailers will give you a sale price if you bring in the ad of a competitor. Another example is warehouse retailers that sell leather goods such as boots, handbags and luggage at wholesale prices that might be 30 to 50 percent lower than prices at the mall.
Step 4
Save by setting up an automatic payment to your savings account. Most banks provide this service. For example, you could divert $50 to $75 or more to your savings account from every paycheck. If you tend to be an impulsive shopper, doing this will help you save up a nest egg over time.
Step 5
Take advantage of your company's 401k plan. If at all possible, use whatever investment options you have at work. For example, you can earmark a certain amount of every paycheck to go into your 401k.
If you are self-employed, look into IRA and Roth IRA plans or hire a financial adviser to assess your investments and recommend a plan for you.
