Live on less Money than what you Earn

As a single mom I tend to be looking everywhere for financial advice, money saving tips, and other money saving advice. I have learned that one of the biggest mistakes that people make with their personal finances is spending more than you earn. Even before I was a single mom, I did the same thing. I have learned that one of the biggest mistakes that people make with their finances is spending more money than they earn. Some people are trying to keep up with their friends and others just think that they can't stop spending. I have even noticed some parents spending more than they earn because they do not want to let their children down, believe me the kids will understand when they are put in the same situation.

The first step in spending less than you earn is to know exactly what you are earning. Calculate everything that you have coming in; your income, your spouse’s income, investments, and any other miscellaneous earnings that you may have. Be sure to include all your earnings so that you are knowledgeable about what money you have.

Calculate your monthly spending. This calculation should include everything from housing to your everyday drinks. You need to know what you are spending every month so that you can determine what you need to do to spend less than you earn.

Now find out what you can do to cut back on your expenses every month. This may be cutting back on your bills like cable, phone, finding ways to save on utilities, or other ways to cut back on your bills. I have found that the biggest amount that I was spending was on things like sodas, food, and other small items that I honestly did not think about until I figured out I was spending more than $50 a month. Even the smallest cut in your spending can make the difference between spending more than you earn or less than you earn.

Stop using the lines of credit. Most people spend more than they earn because of credit cards. Stop using the credit cards and pay the balance down. Just because the minimum balance is only $200-$300, if you are adding more than that each month you are defeating the purpose. Leave the cards at home so that you will not be tempted to use them. Credit cards are good in cases of emergency, but that is it?

Once you have begun to spend less than you earn you should start a savings account. Put a small amount it this savings account each month. This money can be used during months when bills may be higher, or you just end up spending more than you earn. Things always come up; this can help you be prepared.

Simple tips for spending less than you earn Quit trying to impress others. Stop being concerned about what others think Don't worry about your children being disappointed, explain to them the situation. Find ways to save on everything from paper products to bill payments. Keep up with your spending. Continue to work on spending less than you earn, you will continue to do better every month.