4 Steps to Block Financial Holes in Your Budget

The money that you spend adds up, and even those little expenses that may not seem like much on their own can put your financial security at risk over time. That’s because these little charges and costs that you don’t really need are basically like holes in your grown-up piggy bank. Find the holes and plug them to make your finances more secure. For most people, finding the financial holes in their budget is actually relatively simple.

Get Rid of What You Don’t Use Everybody has something they paid for and don’t use. Maybe it’s that folding bicycle you bought but simply don’t ever want to get out, maybe it’s something else. Whatever you have that you don’t use, get rid of it. Cancel your subscription to the daily newspaper you can get at work for free or sell an item you don’t use and you’ll have more money in hand.

Reduce Monthly Charges Whether you’re paying way too much for your phone bill or paying for monthly services like premium TV channels you don’t watch too often and a Netflix subscription, cutting your monthly charges down can put some extra money in your pocket at the end of the year. Go over your debit and credit card charges and find out what services you can cancel without really feeling too bad.

Change Costly Behavior Doing things like going out to eat can be fun, but if you do it too much you could be hurting yourself financially. Look over your monthly expenses and see what you can eliminate. Maybe you can order takeout once a week instead of twice and rely on good old home-cooking the rest of the time. Even small chunks of money will add up.

Plan to Save Setting a savings plan like an IRA or 401(k) at work can help you put money away before you even get your check. It’s easier to save and live within your means when you don’t actually pocket the money. Look to put 10 to 15% in a savings account offered through your employer.