It’s always smart
to control your spending. But if you or others in your family are facing
difficult times financially, perhaps from a job loss or wage cuts, it
is especially important to spend less so you can have more money to
pay essential bills or to add to a savings account you can tap in an
emergency. Here are some strategies.
Take a serious look at your
spending.
As a first step, think about creating a
spending plan, commonly known as a budget. Make a list of your monthly expenses divided into
two groups — your “needs” and your “wants.” The needs are expenses that are absolutely necessary,
such as your housing, utilities, clothes, food and transportation. The wants are optional purchases.
After you differentiate between spending for needs and splurging on wants, cut back on the second
category, especially if you’re already suffering an income loss or other financial hardship.
Possible places to cut back on unnecessary spending include restaurant meals, monthly subscriptions
and premium TV channels.
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