Personal Finance Management: Cutting Spending and Saving Money

[Mika]

Effectively managing household finances involves two key aspects: cutting your spending and saving money. If your earnings are good you will have to cut your spending on luxury to save money, if you are earning low, you might even have to cut your necessity to save more money. The first step to cut spending begins with distinguishing between necessary spending and unnecessary spending. Rent is necessary spending but your bills in a posh restaurant is unnecessary spending. Identifying necessities like cereal and curbing unnecessary expenses, such as icecreams, enables you to cut your overall spending effectively, thus, facilitating savings, and contributing to a better financial management.

 

[Leah Kelvin]

Managing your own finances involves reductions in spending as well as saving. To minimize the expenditure, it is important to keep an eye on the expenses and note any extravagant or unnecessary purchases. Additionally, you can create a budget and prioritize essential expenses for purposes of reducing your spending levels.

 

[Jasmine]

Sometimes it is not possible to cut your spending no matter how hard you try, even when yo downgrade your life and cut our essential spending, you might still not be able to save money., This condition arises when you are unable to earn good amount of money of inflation is so high in the country that no matter how much you earn, you are still short of funds for paying your bills. The only option left is to work extra hours and make extra money.

 

[Augusta]

Yes, it is always good to cut expenses and promote savings. When you spend your money is gone but savings keep your money for tomorrow and the future incase of eventuality.

For me I'm always more proactive. as I set aside a fixed amount from my paycheck every mont before spending anything else from it. This is the sure bet for me as I can then manage the rest of your expenses with the remaining money.. It is good to save than spend

 

[Etini]

I am all in for cutting down on luxury expenses to save money. The only part that people misconstrue in cutting down expenses to save money is for people to want to live an inferior lifestyle to save money. I have seen people compromise on the quality of their meals just in a bid to save money. That might turn out to be counter productive. There are certain things that you don't have to compromise in order to save money and one of them is your food. You don't have to eat luxurious but be sure your meals are basic level if quality.