Be careful with how you go about your budget

Image source: thebalance.com

The most common reason millions of Americans are knee-deep in debt is because of their tendency to overspend. A lot of people seem to know very little about the limitations of their budget.


To address that, here’s a quick guide on how to keep yourself in check.

Track your expenses

Keep a ledger at home and be diligent enough to enter your expenses at the end of the day. It won’t take 10 minutes of your time. This way, you won’t be confused as to where your money goes, and you’ll have a better sense of how to adjust by cutting some things you don’t need.


Focus on yourself

Another common reason why people spend beyond their means is that they focus too much on what others have. Whether it’s family or friends, or even strangers, when people see others buying or doing things they’d want to do, they tend to spend unreasonably out of their budget. Focusing on their own savings and income will help them stay in line.

Image source: thebalance.com

Let go of your subscriptions

Do you really need subscriptions to over 10 different programming channels if you only watch two programs– two that are available on say, Netflix? Do you need to subscribe to fashion magazines when you already have access to the internet and Google? Getting rid of subscriptions that you don’t need can save you hundreds of dollars a year.


Hello, my name is Steve Sorensen. I’m a CPA based in Colorado. I also advice businesses on topics such as avoiding employee embezzlement and improving retirement plans. For similar reads, check out this blog.