Proper Money Management: Living Frugally

: Chris Lee Law Firm

  Filed under: Money Management

money managementWhen it comes to avoiding financial troubles at a time when the economy is on a down turn and bankruptcy rates are higher than ever, living frugally is an essential part of practicing proper money management skills.  There are a lot of steps you can take to practice proper money management through frugal living while enjoying life.

5 Tips for Living Frugally

  1. Keep a detailed list of your expenses.  Do this for at least a full month.  Don’t worry too much about budgeting yet.  Keeping a list of where your every last cent goes can show you how you spend your money.  You might be surprised!
  2. Once you are aware of exactly how much money you are spending in various areas, it’s time to create a budget.  Creating a budget is a key part of money management.  Adapt your current spending practices to fit your budget.  You may notice you spend too much in one category (entertainment), but maybe not enough in another (groceries).  Now that you have a budget, stick with it!
  3. Set goals.  When you give yourself specific goals for saving, you are far more likely to achieve them.  Simply thinking that you want to save some money doesn’t produce nearly the same results as saving a set amount for a specific purchase or reason.
  4. See what happens if you deny yourself what you think are essential purchases.  You may be surprised how easily you can get along without the enhanced cable TV package!  Excessive living is a leading cause in nearly every single Dallas bankruptcy case.
  5. Reward yourself for meeting certain goals.  You’re still practicing good money management and remaining frugal, but a reasonable reward of some kind is fine!

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