Financial consultants often suggest paying cash for a month or two to help see where your money really goes.
Ever heard the expression “knowing is half the battle”? Well in the case of money management – it really is! Once you realize how much money you are spending on snacks, lunches, and dinners at restaurants, you may decide it’s not worth it.
It may be time fo you to get a good cookbook and learn how to cook at home. Or maybe you already eat at home, but you have a different vice –you love CDs, concerts, going to the movies, always having the latest iPod, laptops and Blackberries, online shopping – whatever it is, when you pay in cash, you really see where your money goes and you can make a more informed decision about whether you want to spend your hard earned dollars that way.
Debt management companies suggest that you pay for all of your purchases with cash, even when you shop online. Bet you’re asking: how is that possible? Well, the next time you’re shopping online, check to see if the online store offers the option of paying for your purchase directly from your bank account. The right cash payment option can be the safest, smartest way to shop online.
Becoming aware of where your money is spent is only the first step to a successful debt management strategy. Write down where all the money goes and you can use this as the basis for a budget. Then you can set some financial goals, reduce your debt, and plan for your retirement. It may seem like a lot to get in order, but take the first step today and see where it leads you!