You need certain things to get by. How do you decide what to spend, where?
"The easiest thing you could do is create a weekly budget for your necessities. Then you take cash and put it in separate envelopes for each item on that budget. These can be things like food, gas, etc. And then you try to pay cash for everything else," says Gary Thompson of Central Pacific Bank.
Thompson advises trying to stay away from using debit and credit cards. It’s just too easy to pull that plastic out of the wallet. Then you have to decide what you are about to buy is something you need – - or want. There are other ways to save money and for some of us, these may be the most difficult.
"One interesting thing you can do is try to eliminate one vice, like on-line shopping or try to reduce certain things like pau hana or weekend golfing with the buddies. If you take that money that you typically would spend and save it, you would be surprised at how quickly those savings would add up," he says.
Thompson admits he will probably get calls from his golfing friends – but the point is, you are trying to save money. Any other words of advice?
"Whenever you go shopping write a list. Stick to the items on the list and don’t buy anything that’s not on the list. The second thing is follow the 30 day rule. Whenever you consider an impulse purchase, wait 30 days and then you’ll find out if you really need it," Thompson says.
There is always the family to consider. Parents sometimes want to give their children everything they want. The key here, and we’re talking to an expert, kids mostly want their parents time more than money. Take them to the park or the beach and you can save a lot.
See the original article at: KHON2 Local News
