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How to control the expenses ? |
How to control the expenses ? depends..what are your expenses? I mean like you might be able to cut housing costs by sharing an apartment with someone; you could buy an older car and then not have monthly payments (and your car insurance might be less), you can unplug everything and open your windows (if you're not on the first floor) and maybe save on ac or heat, also depends on where you live). Maybe you can get a job close to work so you don't have to drive. Dave Ramsey (radio show) would probably tell you to get a second job and eat beans and rice until you've gotten out from under your credit cards. Anything else? just ask. List out your essential things. Since you can't avoid these expenses, cut off all your extra expenses. It's all about getting value for your purchases. We need transportation but there are many ways that you can commute... your own car, public transportation, carpool, taxi, etc. Each method has pros and cons based on cost, associated time, and the amount of control. In my younger years I would take a taxi for my grocery shopping instead of having a car 24/7 that I rarely used because I could walk to work. A car would have been a nice thing but impractical. I spent around $50 per month for taxis compared to $300 or more per month for car ownership. We need housing but do we need a suburban single family home for $1200 month or would a $550 a month apartment be more suited to our wants and needs. The reality is that we cannot have everything. You can control expenses by looking at the value for your money and reviewing if a substitute may answer your needs for a lesser cost. Other choices to make include: home phone or cell phone ... do you need both? How many movie channels do you need or would a service like Netflix be cheaper per month? Bookstore or public library? DSL, dial up or cable internet??? The list goes on and on. It's great to reduce your expenses; however, it's important to have a plan. Don't spend all of your money... get a retirement fund set up for your golden years. The sooner you start, the more money you will have in retirement years. Check out a financial calculator to get an idea at your age, how much you should put aside each month to become a millionaire in 20, 30, or 40 years. One calculator called "Latte Factor" is available on David Bach's website (link below). http://www.finishrich.com with a budget. |
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