These Small Money Leaks Drain Your Finances Without You Realizing It
Have you ever wondered why your money seems to disappear like a bubble the moment you receive your salary? No matter how you budget it, your paycheck just isn’t enough to sustain you until the next payday? Your small money leaks and expenses may be the culprit behind your financial struggle. The financial experts recommend these tips to help you get a grip on your finances.
On Handling Finances
According to a certified financial planner and CPA Shane Mason, most of his clients between the ages 20-30 years old are struggling in their finances due to their student loans. While he recommends budgeting to his clients, it may be a buzzkill to grasp the concept behind it.
The Price Group senior vice president and CFP Matt Price also voiced out the same sentiments. According to Price, it makes it harder for millennials to budget their finances especially since they cannot understand what delayed gratification means.
Most millennials tend to think why the delay on buying the things you want when you can do it today? Which makes them impulsive in buying, thus, wrecking their finances in the process according to Price. Price adds millennials should balance their budget based on their present needs and future goals.
In this way, most millennials will prioritize paying off their present needs first, saving for their future goals the second, and spend what’s left of their money to gratify themselves. Price also works with his father, Randy Price to offer a perspective based on the different demographics. Both Prices also recommend to their clients to make paying off their debts a top priority.
They recommend their clients save a certain amount every month. Lastly, they can spend the rest of their money however they want. They didn’t care how their clients spent their money (since one person’s luxury is different from another), as long as they meet the correct saving amount. Here’s how you can cut down your small money leaks to manage your finances properly according to the experts.
Save on Restaurants and Night Outs
While it’s recommended to go out and have social gatherings once in a while, M. Price recommends you limit the frequency of eating out at restaurants. He says it’s the number one culprit in killing your budget.
As much as possible, use your budget for food to build your grocery items and cook at home. If you cannot avoid going to restaurants with friends, at least eat first at home before you go out to make sure you’re not hungry.
In this way, you don’t need to spend money on buying food and use your time to catch up with your friends instead. Aside from saving on restaurants, Mason also recommends cutting down your alcohol intake, especially in men.
You might think spending a dollar or two for a bottle won’t do any harm, but it can drain your pocket easily since you and your friends tend to order more than one bottle of liquor. He recommends you have a drink or two before going out to cut costs.
Save Up on Bank Fees
According to Mason, most people tend to swipe their ATM either to withdraw or to purchase an item using a card. What they don’t realize is that the fees they pay every time they use their card can add up significantly.
It’s important to reduce your fees by using your bank’s ATM when withdrawing and limiting your swiping spree. Another option according to Mason is to open an account that gives a 2% yield on cash. While this type of account doesn’t have ATM, Mason says you can save significantly since they reimburse you for the fees.
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