Six Ways to Stretch Your Dollar in a Budget Economy

With the economy the way it is, everyone is looking to make their dollar go a bit further. There are two ways to make your money go further. This includes growing your savings and spending less money. There are many different ways you can stretch your dollar in a budget economy.

Create a Budget

After people pay their bills, they tend to think of all of the money that is left over as “extra” money. To avoid this, it is important to create a budget for yourself. Limit how much money you are willing to spend on certain things. Be sure to include entertainment into your budget. This includes eating out, going to the movies, etc. If you stay within your budget, you should have extra money left over every month. Keep the extra money in a savings account or invest it for a future emergency rather than spending it on extra things you want.

Savings Comes First

Another problem that people make is that they put whatever money is left over into savings every month. However, a lot of times there is no money left over. That is because you see the extra money in your account and you’re more likely to spend it. That is why it is important to put money into your savings account before you do anything else. A good rule of thumb is to put about 10 percent of your income into savings. Generally you can have a certain part of your paycheck directly deposited into your savings account each month. This way you never see the money and have less of a chance spending it.

Investing

Investing in the stock market is one of the best ways to stretch your dollar. Money & Markets Stock Experts can help make sure that you invest your money correctly so that you get the most return. This is one of the best ways to put your savings to work for you. Finding ways to invest your money can give you much greater of a return than just having your extra money sit in your savings account for an extended period of time.

Don’t Live Outside Your Means

Avoid using credit cards and taking out loans; these should be for emergencies only. A lot of people have a hard time living within their means. Everyone wants the newest smartphone, fastest car and brand new gadgets. If you cannot afford it, don’t buy it. If you want to make a big purchase, save up for it first instead of charging the whole thing.

Track Everything

A coffee here, a soda there … it all starts to add up. That is why it is always important to track everything that you spend, not just the bills. Every time you buy something, write it down. See how much money you could save if you cut out those $3 coffees every day. You may actually have more money than you realize.

Eat In

A lot of people like to eat out. However, eating at a restaurant can get pretty expensive. Not only do you pay for the food, but you have to pay for the tax on your meal and tip the server. The same can be said for fast food. Sure it tastes good and is easy, but spending $7 to $10 on fast food every day adds up. This could cost you between $30 and $50 a week! By the end of the month, you have literately spent hundreds of dollars on fast food. Start packing your lunch when you go to work, and you will save plenty.

Many people live month to month in this economy. It’s hard to find any extra money to save. However with the proper planning and research, you can easily find ways to cut your budget or stretch your dollar further.

 

Tags: Budget, Money Management

Category: Budget