If you want to know how to stop spending money unnecessarily, then the first thing that you need to do is track your money. You must track every cent and dollar that you are spending or earning. Tracking your money is necessary because that’s how you will know the difference between how much you earn and how much you spend. To know how to control your money just visit this site so that you can control your finances and do more and more savings.

Track money

You can keep track of your money in several ways, such as keeping a small notebook where you can write all the expenses, or you can take the help of several online software available these days. Today many built-in apps for money tracking are available on smart phones. There are different ways to track your money, and you can choose any one that suits your preference. Only when you track your money can you easily identify the important areas where you are wasting money unnecessarily and discover where you should cut your expenses.

Save money for an emergency.

No matter how much you earn, you should always save a portion for future emergencies. You can save either 10%, 20%, or 30% of your income for an emergency fund. No one knows what lies in store for us; therefore, saving is a good habit and will always come in handy during an emergency. You can also set your income portion to steadily pay all your debts so that it doesn’t pile up with time.

Don’t put all your eggs in one basket.

A famous proverb says not to put all eggs in just one basket. You should apply this proverb at the time of managing money. You should not rely on only one source of income; instead, look to create multiple income earning opportunities for yourself. For instance, you can create a secondary income source such as selling old stuff or converting your passion and hobbies into a steady source of income. A secondary source combined with a primary source will help you to save money. Energetic young people can also take up part-time jobs as their secondary source of income. You should set aside your 50% of income to buy necessary goods such as utilities, housing, food, etc., and save the remaining 20% for emergencies. You can spend 30% of your income on wants that contain recreation facilities.

Get over your credit cards.

Most people lack foresightedness and rely on credit cards a lot of laziness. Depending on credit cards would create more debts for you, so avoid this problem and don’t consider credit cards to be your saviors even if you need them. Instead, try investing in gold or education that will yield profitable returns.

Don’t be impulsive

You should control your desires and urges since impulsive urges can make you buy unwanted and extra things, which will be a waste of money. When you follow these above tips and tricks, you can reduce financial stress and manage money effectively.

 

Author's Bio: 

chrishtopher