Preventing money hemorrhaging is preferable to fixing it later. Ideally, it would feel simple to live within one’s means and always have ample savings. However, this takes budgeting, impulse control, savings plans and goal setting. When done properly, it can allow you to live like no one else.
If you’re hemorrhaging money, it’s essential to create a budget or adjust your current one because something clearly isn’t working.
When you buy with cash, you can only spend as much money as you have with you, limiting your ability to overspend. The logic appears sound: if you only use cash, you can’t spend what you don’t have.
Don’t wait to see what money is left over at the end of each month and then move some to savings. You need to pay yourself first by automatically routing funds into a savings or investment account.
Set financial goals to keep yourself motivated. By setting and holding yourself to SMART goals, you make the likelihood of financial success high.