The old adage says that rich is the man who always saves. But when the paycheck arrives sometimes it disappears, like a magic. It goes in the house payment, credit cards, clothing for children, repair and maintenance, etc.. So how can we save if we do not even have the money?
The money has to be put first, know where it comes from and where it goes, how it moves and where they usually stay. If you know this too well, then learn to control it.
How to start saving? Right now, have a cup of coffee, look for a notebook, a simple calculator, and a pencil eraser. Start writing at the top of the page with the following headings:
Date, Income, Expense, Explanation
Then comes the more difficult task: writing income and expenses for the last month. Surely we need to find the bank statements and credit cards for this. Let’s start writing income: wages, interest, family support, etc.. And then the expenses, cash advance payments, bills, etc.. If we have forgotten the details, we can at least write down the total amount of cash withdrawn from the bank, but not until next month when we will know exactly where we spend it. Doing the monotonous task may be tedious but it will surely help you know where your money went and how to trim down your expenses next time.
This analysis will conclude when we add all the income and expenses of the month, and define where the money went and where it came. In the end, we will have a sheet that states every cash transaction we made.
– Do an analysis of income and expenses
– Prepare a monthly budget
– Find ways to lower costs and increase revenue
This work may be very difficult but we all need to re-examine our consumption habits and try to live more frugally. Unfortunately, many health professionals are concerned that the health of Americans will begin to deteriorate for more reasons than just the stress of economic problems. As people begin to cut on food costs, many may end up eating what has traditionally been regarded as a good source of cheap calories: junk food, which could result in worsening of the obesity epidemic that afflicts us, just when medical costs are rising alarmingly.
Numerous studies have linked low incomes with less healthy eating habits, but this should not be the case. There are many easy ways to eat healthy and still save money. A simple way to do this is to reduce the amount of animal products in the diet, as they tend to be much more expensive than plant foods. The cheapest kind of meat is ground beef, but it is also the least healthy and secure. The cost of making meals with food animals could easily reach $ 10 per person per day or more.
Eating out is also a very expensive habit, except perhaps for the least healthy of all: fast food. Incredibly, despite the economic crisis we face, McDonald seems resistant to the effects of the recession. Even in New York, gourmet restaurants are beginning to offer burgers on their menu to attract customers who otherwise would opt for the nearest burger joint to feed themselves.
However, if you want to save money without losing your health, try to consume the staples that have been used in difficult times through human history: potatoes, beans, legumes, soups, carrots, rice, etc., what some call “a diet for the new economic depression.” Legumes and grains can be purchased in bulk and stored for long periods of time. What about fruits and vegetables? Try to buy in the greengrocers or outdoor markets, rather than in the supermarkets.
Now why do we emphasize on food to save money? Because food is a need. Unlike the material things we buy which we can live without, we cannot live without food. We spend a lot of money on food without realizing it, because we do not count how much money we spend on food as it is a necessity. But if you come up with a financial statement that records all your expenses, you will see how much food costs you.
While other great money saving techniques all sound too familiar, choosing what kind of food to eat to save money is one saving technique that has been overlooked. You have nothing to lose choosing the greener and healthier food stuff, only a saving’s gain in your piggy bank.
About the Author:
Mackenzie Salis is a freelance writer, a professional blogger and an enthusiast advocating finance awareness via online exposures for 3 years. She is the author of the site: OnlinePaydayLoansGuide that can provide all valuable information about loans and warn you against fraud online.