How to Budget Your Money Effectively | Cleveland Bradley County Teachers Federal Credit Union

Does it always seem that when payday comes, you have money for a second before it all goes to monthly bills and other expenses? You are not alone.

In fact, one study found that around 78% of American workers are living paycheck to paycheck. How can you manage if you’re part of that number? An effective budget is your best friend.

Looking to create a budget or to optimize the one you have? Start here:

Take a Closer Look at Your Expenses

One of the first things you want to do when establishing a strong budget that works for you is to look at your monthly expenses. How much are you spending each month on rent/mortgage, smartphone, utilities, car payment and other set expenses?

But don’t just look at those monthly bills—you also need to account for other expenses, such as groceries, clothes, coffee at the local coffee shop, eating out, etc.

The No.1 mistake people make when creating a budget is not taking everything into consideration, but you have to in order to really make your budget work.

Make Some Cuts in Your Expenses

Now that you actually see what you are spending money on, it is time to make some cuts where you can, especially if the amount you are spending each month is more than how much income you are bringing in.

Perhaps go to the coffee shop once or twice a week rather than every morning, or start cooking more meals in rather than eating out most days of the week. You could also cut cable and just stream to help cut back on monthly expenses.

There is always going to be room to make cuts and end up saving money rather than spending.

Start Carrying Cash

In today’s society, many of us are no longer carrying cash, especially with how much easier it is to carry around a debit/credit card. However, when you use a card, even a debit card, you are not actually seeing the money leave your hand, which can make it even easier for you to overspend.

Therefore, consider carrying cash in order to make purchases so that you can actually see how much you are spending on a weekly or even daily basis.

Be sure to give Cleveland Bradley County Teachers Federal Credit Union a call today to learn how we can help you keep track of your finances.