Once you’ve pulled the plug on most non-essential spending, it’s time to think a bit about where you can save on your non-negotiable expenses, like your rent and utilities. As much as we hate to say it, if your expenses outweigh your income, some little luxuries are going to have to fall by the wayside, at least for now.ĭoes this mean you can’t have fun anymore? Not at all! But, it does mean that it’s time to look for alternate ways to stay entertained that don’t require spending your hard earned money. The first expenses on the chopping block should certainly be your non-essentials, like online shopping, recurring monthly subscriptions (sorry, Netflix), and, yes, probably your daily coffee. Even if you feel like you’re already quite frugal, the vast majority of us can find a way to reduce the amount that we spend each month. If you’ve noticed that your new budget still shows you spending more each month than you’re actually bringing home, it’s time to cut down on your expenses. You’ve worked hard, put in the hours and you’ve now got a fresh new budget in hand. Use your KOHO Insights to figure out precisely what you spent money on during the last 30 days and categorize each expense as either essential or nonessential.Ĭreate an ideal budget plan that follows the 50/30/20 rule, where 50% of your income is allocated for needs, 30% for wants, and 20% for savings.Ĭompare your previous month’s income to this ideal budget plan and see where you need to cut back on your spending to meet these targets in the upcoming months. Make a list of all your non-negotiable monthly payments, like your rent, utilities, and food. To get started with your budget, follow these five steps:įigure out precisely how much you make each month after taxes based on all of your sources of income. You can lounge around in your PJs and see exactly what you’re spending your money on just by signing into the app and checking out your KOHO Insights. Plus, your KOHO account comes with a whole host of great budgeting tools, right in the app. Nobody ever became a money-saving guru by winging it, so getting yourself a budget that can help you stay on top of your spending is key.ĭon’t know where to start? Well, luckily for you, we’ve got a sweet budget template that has everything you need to know to get your bank account out of the red. All good things start with solid planning and your budget is certainly one of them. Now that you’ve got a handle on why you’re having trouble managing your expenses, it’s time to get to work. "Grab a seat on the couch, make a cup of tea, and have a real heart-to-heart with yourself - and your bank account - to figure out what you can do to get a better handle on your budget management." Step 2: Get in control of your budget That way, you can reflect back and see if there are any trends in your spending habits that are based on stress or another emotion. Ask yourself whether you’re spending money just to make yourself feel better or if there’s some other underlying reason.Ĭonsider starting a journal to note down how you felt before, during, and after each shopping experience. If not, think about why you’re shopping in the first place. To determine what might be at the root of your problems, try the following:īefore you buy something, ask yourself if you actually need it (We know this is a cliche but trust us, it works!). Grab a seat on the couch, make a cup of tea, and have a real heart-to-heart with yourself - and your bank account - to figure out what you can do to get a better handle on your budget management. On the other hand, an overwhelming fondness for shopping through Instagram ads or using emotional spending as an outlet, is well within your ability to change.īefore you can even think about getting in control of your personal expenses, though, you need to know what’s causing your financial stress in the first place. Some things, like an illness forcing you to take time off of work, are certainly out of your control. When your monthly expenses are too high for the size of your paycheque, there’s usually a reason. Step 1: Figure out the source of the problem When your expenses are greater than your income, using the power of your KOHO prepaid Mastercard ® account can go a long way. We’ll give you the low down on five simple steps you can take to get in control of your finances. If your last bank statement made you panic, worry not. ![]() ![]() However, when the cost of your regular personal expenses far outweigh how much you make each month, you can quickly find yourself in a hard financial situation. Rent, utility bills, student loans, food, and even the cost of commuting to and from your job every day is expensive, to say the least.
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