Your personal finances are one thing that you can have control of in a struggling economy if you establish a budget, know your limits and carefully consider your expenditures. This allows you to know what you are spending, where your money is going and to prepare a cushion for tough times.
The first step to get your finances under control is to know where your money is going. Keep your receipts for a month and then sit down and analyze them. Find areas where you are prone to spontaneous spending, such as impulse buys at the register, eating out and related spending. These are areas that you can easily cut back in and save money. You also want to know what bills you must pay each month. Set money aside to cover these expenses and do not touch it otherwise. This makes sure that you can cover your bills when you need to, keeping you out of a bind.
The next step is to find ways to save money. Having a cushion of funds set back can be a blessing in the event of unforeseen circumstances that can come up. You need to put back at least one to three month’s worth of your normal monthly salary. This gives you a back up source of funds in case you lose your job. Pick a certain percentage each month to put back out of your pay and you will see your savings quickly grow. By keeping careful track of your spending, you can make weathering a rough economy much easier.
