One way to avoid putting spending on automatic pilot: Write down everything you buy and the price. Better yet, get receipts fo r everything you buy. Then go through the list and see where your money is going. A stark look at reality can be quite humbling.
In todays unstable economy, you need to make sure you're not spending any money that doesn't absolutely, positively need to be spent.
2. Start a go-to fund for emergencies.
The average family will face up to $2,000 a year in unexpected bills. For families already stretching to pay the bills, those surprises can trigger long-term financial problems. While you can't plan what or when, you can have money set aside just in case.
You need to really boost your cash reserves.
A good goal is six months to one year's living expenses in an assortment of liquid vehicles, like a bank account, money market account and short-term CDs.
- Pay yourself first. It is recommended to save 10 percent of your take-home pay every time you get a check.
- Keep it liquid and make saving automatic.
- Look for a money market account that pays the highest rate you can find.
3. Consider cutting back, rather than cutting out, some expenses.
It's much more effective if people cut back rather than cut out because it's the change in behavior that's so tough."
Examine services you're paying for and not fully using, like the cell phone plan with unlimited texting or the premium cable package. Are there less expensive options that would make you just as happy?
4. Safeguard your current job.
Remain engaged and enthusiastic, keep a high profile and network, network, network.
5. ALWAYS be on the lookout for your next job.
Just like a corporation, you have to ensure your own financial survival, says Yate. If you believe that your company or job is in jeopardy, update that resume, reach out to your network, hit the job boards (anonymously) and ignite your job search.
6. Keep your debt load light.
Use credit only if you are paying off balances in full every month. Otherwise, switch to cash, checks or debit cards. That way when the money's gone, the spending stops.
7. Adjust your withholding allowance.
The average refund is well over $2,000, And most people could use an extra $200 every month.
8. Reward yourself.
Hold out a little discretionary money that you can use for fun.
9. Money From Nothing
You have an unexpected windfall, like a raise, bonus or tax refund
At the end of the day put your pocket change in a big jar. At the end of the month, you'll have $20 or $30, and you'll never miss the money."
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