Spend Less Than You Earn

Although this tip sounds straightforward, you may sometimes find it daunting to actually put it into practice. However, reevaluating where you’re spending money can significantly increase the scope of your earnings and help you live within your means.

The best way to get started is to write out all of your monthly expenses and see how this compares to your monthly income. This important first step will help you determine the current state of your personal finances.

Take a second look at this list and see if you have any expenses that can be eliminated or reduced. Be honest with yourself. Which expenses show wasting your money on things that aren’t even important to you? Focus on keeping what’s important and eliminating the rest.

For example, while there’s nothing inherently wrong with spending five dollars per day on a Frappuccino, if your income doesn’t support this kind of spending, it may be in your best interest to do without this small luxury for the time being.

Invest in a good budgeting program, like Quicken or QuickBooks, to help you keep track of your spending and simplify the task.

Check back each morning the rest of the week for the 3 essentials for managing your money!