(Photo: http://www.morguefile.com/archive/display/958234 )
A lot of my friends always ask me how they can save more money. I am no millionaire but I am a frugal spender especially when it comes to things that only provide me a minute high (my phrase for materialistic things that make you feel good temporarily.) I prefer to spend my hard earned money on experiences such as traveling, concerts, events, seminars and a surplus of other things that make my life rich in “experiences.” With that being said I have come up with a list of three things you can do now to increase your cash flow.
- Keep a monthly budget: This monthly budget is the blueprint of how you should be spending your money. It identifies where your money is going which will allow you to see where you need to tighten up on spending, and where you can afford to spend a little more. Make sure in your budget you include all bills/ credit cards/loans/ gas/food/etc.
- Savings account: The rule of thumb I follow is saving 20% of my monthly income. I set this up thru my bank so I technically never see the money it automatically deposits into my savings account when my check gets deposited into my account. After a while, you won’t believe how much you accumulate over time.
- Emergency Fund: Otherwise known as saving for a “rainy day” fund consist of $1,000.00 and if unexpected emergencies come up you can handle them with less stress. Whenever this account decreases remember to get it back to $1,000.00
By doing these three easy steps, you can begin to live a life that is less stressful and also more rewarding. The idea is to make more than you spend of course there are other more in-depth tips that I also include when it comes to money but for my beginners, this is a good start. If you want more info and tips on what I do when it comes to finances feel free to comment or contact me on any of my social media pages.