There are many people out there still not aware of the importance of knowing where their money flows out. Then, at the end, they will suffer as not having enough money even for food. Actually, it is not that hard to study our expenses. All we have to have is our bank statement, a calculator, a pen and a piece of paper. Then, let’s begin our mission for today- controlling the money outflow.
First, have a bank statement in front of you. This can be a hard copy or just an online bank statement. Look for the highest amount of outflow. Then, look at the item that you purchase with that amount of money. Let me give you an example. For me, my highest expenses are for cigarettes and foods. So, I will write cigarettes and foods with the amount of money I have spent on the paper.
Then, sum up the total money that you spent for that particular of things. This should be in a month period of time. Let say, I have spent $80.00 for cigarettes and $150.00 for the foods.
After that, look between these items that you can cut off the spending from them. For me, those 2 things are really essential for my life. But remember, our goal here is saving some of our money from over-expense on the main source of money outflow. So, I have to find solutions to this problem.
What I can do are reducing smoking activities per day and reducing buying junk foods. Before, I use to smoke whenever I want (minimum of 20 cigarettes a day). Now, I have to reduce it to 10 to 20 per day. That is a lot, but if I think again, I can save more money from it. Moreover, it is good for my health. For the junk food, I can substitute it with bread or other foods that can full my stomach. And as you know, bread is cheaper than junk food.
So, take your action now before it is too late. Know your main source of money outflow and construct strategies to overcome it. You should see the difference from your account balance next month if you try this.
Good luck!
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