Many of us think they're spending more than they should. So they want to cut costs. But that is where the problem arises.
Most tell themselves in the beginning of the month, "You'll HAVE TO spend less from now on."
They try to follow this for the first few days but soon realize that they are clueless about exactly how to do it, and end up spending more than they had wanted to.
Sounds familiar? Read on.
This is not as hard as it sounds. We can do this without feeling too uncomfortable.
a) Make a list of the areas of your day-to-day life where you can reduce cost. It may be something like this:
1) Going to movies,
2) Drinking,
3) Eating out
Etc.
(This is just an example. Make the list keeping in mind your own priorities.)
b) Beside every entry in this list, write down how much you spend on it per month.
c) Beside that write how much you'd want to spend on it (This will be much lower, ‘cause you're cutting costs.).
After this the list will look like this:
ITEM I NOW SPEND I WANT TO SPEND
1) Going to movies $10 $5
2) Drinking $15 $7
And so on.
(You can even put a zero in your ‘I want to spend' column against some item.)
d) After this, make sure you stick to your spending targets throughout the month.
I hope this will help reduce your costs significantly. All the best!
