Budgeting and Spending Strategies Personal Finance Lab Budgeting
Budgeting and Spending Strategies Personal Finance Lab
Budgeting Strategies Start with a Clear Goal It is important to start with a clear goal so that you can create action steps to get to that goal and also have a way to see if you attain your goal. A good goal is “ I want to save $75 extra a month. ” A bad goal is “ I want to spend less. ” Pay Yourself First This is a strategy where your savings are instantly pulled out of your paycheck. This is helpful because then you do not have to account for putting money into your savings account when planning out you budget. Divide Savings and Emergency Cash Ideally you should never take money out of your savings account but, emergencies do happen. One way to combat this is by having a stash of “Emergency Cash” in your checking account incase you are faced with an emergency that you need extra cash for.
Spending Strategies Keep Credit Cards at Home This one is simple. If you have trouble spending too much, keep your card at home so you don’t spend money. Opt Out for Overdraft “Overdraft” is when your bank will let you over-draw your checking account by a certain amount. However, when you overdraft your account, your bank may charge you for every dollar that you overdraft. You can opt out of overdraft at any bank, which means your debit card will simply be declined if you try to overdraw. Never Order Same Day Instead of instantly buying something, add it to your cart and wait 1 -2 days before buying it. This will: 1. You will look back later and just remove most impulse purchases. 2. Sellers tend to email special offers and lower prices if you add something to your Wishlist without purchasing.
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