Using Only Cash On A Weekly Basis Will Make You Portion Size Your Finances
The government talks about how the economy is starting to improve but many people have not started to feel the benefits of this change. A large number of people are just starting to find employment and after several months or even a couple of years of inconsistent work there is now a need to portion size their finances.
Imagine you have a pet, for example a dog but it can be any pet and that includes fish. For every pet you have to monitor the portions you feed them or they become overweight and will either incur onerous medical bills or if they are fish, will quickly become overweight and become prey to other fish or in the case of humans, collection agencies.
Pets similar to humans all need pet insurance to cover medical bills so that you are not paying all your hard-earned money to the veterinarians of family practitioner doctors. How do you ensure that you get the most affordable and most comprehensive health insurance coverage for you and your family? Most people will comparison shop on the Internet. Once you have an idea of how much the different plans cost you can then phone up a couple health insurers and negotiate a price that is best for your family.
The same strategy applies for any individual or family who needs cheap pet insurance. You compare the different policies on the Internet and then you might visit in person some of your local insurance companies and negotiate a lower price based on the fact that you know how much the competition is offering for pet insurance.
Thus the first step to reducing the portion-size of your finances is to research your expenses and negotiate with almost every company that has a competitor. Remember, it was not only consumers that suffered during the recession but also businesses and they want to keep your businesses and should be willing to negotiate and work with you to provide a lower price.
A second way to portion-size your finances is to treat them just like you would when you take a dog for a walk. When you take a dog on a walk you generally do not buy the dog a meal when you go out. The dog knows that there are specified times when it is fed and other than the odd drink of water that is when it is fed. The same principle can be applied to how you spend on food when you leave the house.
Unless you have a planned meal outside of the house do not buy food when you go to the shopping mall or work. If you were to add up the amount of money you spend when you travel to work and back on just the food you buy at lunch or during your coffee breaks you would be astounded by how much you spend. The average person will a minimum of $20 per day on just snacks and a cheap lunch which will total at least $100 per week, $400 a month and $4800 per year. Instead, take a lunch to work and discipline yourself to eating at home.
Another way to portion size your finances is to go to the bank once a week, take out all the cash you need to pay all your bills and provide you with disposable income and then spend no more. This will require you making a budget and not using your debit card or your credit card. Any payments that need to be paid with a credit card can be paid by a prepaid credit card. You will find that after paying your bills with cash you will begin to appreciate how valuable your money is and how little can be left.
When people use the debit and credit cards they can easily forget how much they are spending. When you realize that the money you took out of the bank on Saturday is all the money you are allowed to access until the next Saturday you immediately start reducing the portions you buy and become more selective of what you purchase.
By comparison shopping and the use of cash you will find that you will portion size your finances in a manner that will help you and your family save and live within your means rather than beyond your means.