There are many simple possibilities to spend less money every day and increase the money input on the other hand. Before you do anything else, take out a paper and a pen and note down everything you bought in the last 30 days. It won't be easy to remember all of these purchases, so you will decide to install an app on your phone (iPhone, Android or Browser) and keep track of every dollar you spend for the next 30 days. Come back in a month 😉
Money does grow on trees
Now that you have a list of all your spendings, you can have a further look. Mark all the things that are indeed necessary. See the table of earnings and expenses below to see which things are actual necessities. Redbull and Starbucks coffee from the gas station are not, rent and groceries are. When you marked all the things you can categorize them. It is now really interesting to see, how much money you spent on junk in the last month for things that you could have easily spent on more useful categories. Are you satisfied with your spending behavior? Keep up the tracking and avoid unthoughtful expenses in the future. Also put in your earnings for the month in the app and see, if you are in the green or red. Your goal is to earn more money than you spend. Simple as that. Otherwise you are raising debt.
|wage||rent and utilities|
|income from interest||cellphone|
|other revenues||cash expenses|
|Car (rates, insurance, tax, fuel)|
|student loan rates|