Basic principles how to save money

Basic principles

Track your monthly expenses. The first very important step for saving money is actually the analysis where your money each month goes. Once was said that what is measurable is manageable. Think about this principle. Try to track your monthly expenses to get the idea where you spend the most money on.

Fixed expenses
Fixed expenses are those you can not avoid each month. They are rather long terms debts and mortgages than one of expense or loan.

How much of your expenses are fix expenses? Do you have any debts, mortgages? Credit cards debts? What is the rate between fixed and variable expenses?

Variable expenses
Variable expenses are those you can easily avoid each month. In this group of expenses you can find clothes, even food, daily small spendings like cost of magazines, cigarettes, alcohol, eating in restaurants, etc.

Where to go next?

Money saving tip and tricks

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2 Responses to Basic principles how to save money

  1. cataract eye drops says:

    Your savings plan should fit right here as a fixed expense every month. Call it “paying yourself.” You can avoid living “paycheck to paycheck” if you set aside some money each pay period to cover fixed and variable expenses.

  2. It’s an amazing article in favor of all the internet viewers; they will obtain benefit from it I am sure.

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