How Can I Control Small Expenses
Controlling small expenses can be extremely difficult for some people. Impulsive buying is something that a lot of people struggle with. There is an expression “That Money is burning a hole in your Pocket” meaning you cannot wait to spend that money. However even the most careful spender who always watches their finances struggles with unexpected purchases. For example. If someone makes $100,000 a year, that would mean that weekly they make $1,923. A wise idea would be to put half in savings, A quarter for weekly expenses and bills and a quarter for emergency purposes. This not only puts money in the bank, but leaves the person enough to control small expenses.
Controlling weekly expenses and small purchases can be very difficult, but with a strict money management plan, it becomes a simple repetive process. And the end of each year, $50,000 is put into savings. Over a ten year period, that is half a million dollars. Over 30 years of working, that would be 1.5 millions dollars in savings to retire to. However, while this model is for a perfect world, it’s important to remember that not everyday goes as planned. Car purchases and house purchases can be unpexted and large. The loans for those purchases can be difficult to pay back with intrest. as of right now, intrest rates are at 7%. if a home is purchased for $300,000 and the intrest rate for a 30 year loan is 7%. That means that over 30 years $21,000 is total intrest on top of the 300,000 is added. For someone with a $100,000 a year salary, just to pay the loan back would take years, (not including personal finance or weekly expense.)
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