Saturday, April 23, 2011

Smart Spending Strategies

These days, many of us know we should be more careful with our money. However, being cash conscious doesn't mean you have to feel like you're on a tight budget.
There are some simple strategies to manage your spending, to help you reach your financial goals sooner.

Follow the money: Have a plan detailing your financial commitments and outlining your long-term goals. Knowing exactly where your money is going month by month is a key step to saving for the long term.

The 10% approach: Almost everyone can afford to take ten per cent of their regular earnings to put aside in a savings account. Take the money out just after you are paid and you won't even notice it's gone. This beats keeping an excess amount on hand, as it removes the temptation to buy non-essential items.

A weekly allowance: Consider giving yourself a weekly allowance ensuring you have enough to buy groceries, with some extra for incidental spending and other expenses.

Up your mortgage payments: Try increasing the contribution you make to your mortgage each month. The more cash you put toward your home, the faster you'll be able to pay off your mortgage or access home equity for other projects or investments.

Keep high-interest debt in check: With high interest rates on most credit cards, it’s essential not to run up your credit card balance. For larger purchases, use savings from your salary/income, or consider accessing your home’s equity.

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