Handling Money in Tough Times

When times are tough, we all of a sudden start watching how we spend our money, look for ways to save money and make extra money.  The way we handle our money in a bad economy is very important and should be managed strictly.  If you’re looking for ways to start saving more, making more  and spending less continue to read below!  Listed below we have some tricks on how you should handle your money.

Limit yourself - First, it is always important that you limit yourself to spending money.  Lets say you make $2,000 a month, find an amount that you want to save out of that $2,000 and how much you’re allowed to spend.  Once you have a limit, you will feel great if you stayed within your limits and guilty if you want over, it’s all about discipline!

Find alternatives - If you have items that you like to buy or expensive hobbies, find alternatives to them.  If you like to go to the gym, instead of paying $50 a month go to the park regularly with friends or by yourself for a jog.  If you like to go to the movies, simply rent a movie for half the price.  There is always a cheaper way to do something, so find your cheaper way of doings things!

How to save - If you have extra money set aside for a retirement or your life savings make sure you’re making money ON your money.  Opening a savings account at your typical bank isn’t going to allow you to gain hardly any interest.  Instead, open up a CD or a mutual fund!

Have a budget - You always want to have a budget for everything you buy.  This means make a budget for groceries every week, leisure, gas, bills, etc.  It is important to budget your money and make a dollar stretch when times are hard.

Tricks - If you really want to be disciplined and want to be guaranteed to save money, check out these tricks.  Try putting your leisure money or budget money in an envelope.  What you’re allowed to spend should all be in the envelope.  This means you can’t use credit cards/ debit cards and when the money runs out you’re done for the week/month.

Handling your money in a bad economy should be done very wisely.  Look for ways to save extra money, ways to make money ON your money, and look for ways to eliminate unnecessary spending.  If you stick to the tips listed above you will be on the path to saving money instantly.  Be disciplined and think if your purchases are worth the money you’re spending

Disclaimer:This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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