Jan 29, 2013

Prioritizing Your Spending On the Big Things

In today’s economy, it can be hard to know how to prioritize your spending to best maximize how much money you have to spend from month to month. It’s easy to get caught up in spending less money on fast food and small things like that, but I argue that the big things should be the priority.

One of the largest expenses that any family has is shelter. You might be paying a great deal of money in rent, and that could be money you can save. One of the suggestions that I have is to consider downsizing to a home with cheaper rent. This is a way of saving a few hundred dollars a month.

Another big expense is outstanding debt. In my case, this debt is due to college loans. One of the solutions for this is to apply for student loan relief, which essentially means that the government will lower your loan payments, making it so you can save more money. Just remember to pay down your highest interest debt first.

The next big expense is food. You really need to learn to like cheap staple foods such as rice and beans. These are a great way of saving money over eating out every night. This helps save you money in the short term and in the long run.

Finally, the last big expense is the car. In our case, we were not burdened by a large car payment, as we paid in full. However, we discovered that gas was eating up our budget. A few of the things you can do are as follows: drive less, drive slower, make sure your tires are aired up, and maybe pull your bicycle out of the garage.

So what are your expenses and what can you do to cut down?

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