Do you ever get the feeling that your monthly budget needs a makeover? If so, don’t hesitate to take on the challenge. For millions of working people, the idea of tinkering with the budget is something that gives pause. Actually, you should be updating and fine tuning your monthly budget at least twice per year.
In addition to reducing expenses, the chore can help you gain a fresh perspective on how you spend the money you earn. The primary goal of doing a financial makeover is to identify how to better invest any extra capital. Likewise, you should face the chore with the goal of consolidating debt. People discover that using a money tracking app can help a lot, as can using analytical software created especially for personal budgeting. Step one is finding ways to chop expenses.
Pare Expenses
The first step of any financial program is expense cutting. No matter who you are or how much you earn, there’s room for improvement on the spending side of your personal ledger. For nearly everyone, it’s possible to reduce spending on groceries, fuel, and incidental purchases. Joining a wholesale club can cut annual food outlays by as much as $1,000 per person. Taking public transport one or two days per week for errands or job commutes can reduce gasoline expenses. Finally, consider reducing the amount you spend at convenience stores, bars, and coffee shops.
Invest in Rental Properties Incrementally
Set aside a small amount each month for investing in rental properties. There’s no need to buy houses, repair them, flip them, or manage tenants. Arrived is one such site that allows for this unique blend of real estate investing. When you buy shares in a rental home, your investment has a chance to take part in the profit and appreciation. The beauty of this investing style is that you can set your monthly budget up to accommodate any amount, no matter how small. Even $50 per month adds up quickly. Within a short while, your share totals grow. Plus, you can select the specific properties you wish to invest in by browsing hundreds of homes online.
Consolidate High-Interest Debt
If you have high-interest plastic in your life, plan to get rid of it asap. One of the most efficient ways is with a consolidation loan. Depending on how much you currently own on cards, a loan can save you thousands of dollars in interest expenses. Speak with a consumer credit counselor to see exactly how much you can save and to find a reputable lender.
Use a Tracking App
There are some personal finance tips you might not know and using technology can help. Tracking apps are free and easy to download to your phone or computer. They’ll help you keep tabs on how much you spend, when you spend it, and where you make the purchases. Knowledge is power, and tracking apps give you all the power of seeing how your money flows into and out of your life. Armed with a more accurate picture of how you use cash, you’ll be in a better position to chop out unnecessary expenses.
Disclaimer: This content does not necessarily represent the views of IWB.