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Zero-Based Budgeting

Apache is functioning normally

May 31, 2023 by Brett Tams
Zero Based Budget template is a zero budgeting plan that helps you break down your expenses into categories. It provides an easy way to create budgets and track the spending in each category over time.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.


Zero based budgeting is a process where every dollar that comes in goes to the number one priority.

It’s an effective way of prioritizing your money and executing properly, but it can be hard to know where to start when you are just getting started with this new system.

Budgeting can be a nightmare when you don’t have the mindset and tools to make it easier.

So many people struggle with money- they are overspending on things their family doesn’t need or doesn’t enjoy, which causes stress in their lives. But if your goal is financial freedom, it’s time to learn about a new budgeting system.

If you have a desire to:

  • Spend less than you make
  • Get out of debt
  • Save money faster
  • Become financially independent

Then, you are in the right place! Let how easy and simple zero based budgeting really is!

Decide what you want your budget to achieve: a zero-based budget forces you to think about what you want your money to do, rather than just accepting the status quo.

If you want to use zero based budgeting but aren’t sure where to start, this article will guide you through setting it up in an easy and effective way.

Zero Based Budget template is a zero budgeting plan that helps you break down your expenses into categories. It provides an easy way to create budgets and track the spending in each category over time.

What is zero based budgeting?

Zero based budgeting is a financial planning strategy where every dollar in the budget has a specific purpose. With this type of budget, it can be helpful for those looking to get their finances in order or who want more control over their spending.

A zero based budget is when you start from scratch every month and assign every dollar a job.

Income – Expenses = $0

You begin by calculating your income for the month, then subtracting your known expenses. What’s left is $0, which means you have to get creative with how you’ll spend the rest of your money.

You can use a zero based budget template to help make this process easier.

What are the benefits of using a zero based budget template?

Picture of a monthly budget for zero based budget

There are many benefits to using a zero based budget template.

Perhaps the most obvious benefit is that it allows you to see where every penny is going. This comprehensive view gives you a clear picture of your expenses and makes it easy to identify areas where you can cut back on spending.

In addition, using a zero based budget helps individuals worry less about their financial health. Since all living expenses are accounted for in the budgeting process, there is no need to panic if an unexpected expense pops up. This peace of mind can be very helpful when trying to stick to long-term financial goals.

A zero based budget template is also easy to follow. The basic plan can be executed without any difficulty, making it a great choice for people who want a simple way to manage their finances.

How to create a zero based budget template?

Picture of a notebook that says budget planning to create a zero based budget template

A zero based budget template can be helpful in tracking your money and achieving financial goals.

There are a variety of ways to create a zero based budgeting template, and no one size fits all approach. That is why we offer a zero based budget template in our shop that you can modify to your needs.

There are a few key things you’ll need to create your zero based budget template. The first is a list of your monthly income, expenses, and savings goals for the year. This will help you stay on track and plan ahead.

The next step is to individually itemize each expense and income. This may be time-consuming but it’s crucial in order to get an accurate picture of where your money is going.

After that, it’s important to track your spending and income on a monthly basis. This will help you see if you’re meeting your goals or not.

It is important to choose the proper zero based budgeting template for your needs.

What are the 5 steps in creating a zero based budget?

There are five steps in creating a zero-based budget. This system was made popular by Dave Ramsey.

We will quickly outline the five steps to make your first zero based budget. Then, we will go into detail on creating your own zero based budget.

  1. List your income
  2. List your expenses
  3. Subtract your income from expenses to reach zero
  4. Track your expenses.
  5. Make a new budget for the next month or pay period.

One way to ensure success by following a zero based budget is by taking small steps instead of making large changes all at once–this can be difficult for some people who are used to living paycheck-to-paycheck.

Another suggestion is to allow yourself some “fun money” so that you don’t feel too restricted while trying to adjust your spending habits.

By following these tips and using a zero based budgeting template, you can successfully get yourself back on track financially!

How to Create a Zero Based Budget

A picture of someone working their zero based budget.

Zero-based budgeting is a system of budgeting that has been gaining in popularity since the introduction of personal computers and spreadsheets. It encourages decision-making based on values and not numbers, which is important in a time when numbers are often used to make decisions.

Zero-based budgeting allows you to start with a clean slate and create your own vision of what the future looks like.

You will need to gather all of your financial information together, including your income, debts, and expenses.

Step # 1: List out your income

The first step in creating a zero based budget is to list out all of your income.

This should include job income, side hustles, rental properties, alimony, child support, and investment income. Once you have a complete picture of your income sources, you can start to make decisions about how to allocate your money.

It is important to decide how you plan to budget your money on a monthly basis, bi-weekly basis, or by paycheck.

Step #2: Tally up your expenses

Be sure to include any regular expenses you have as well, such as rent or mortgage payments, car loans, and credit card bills.

Think of all of the budgeting categories you need for absolutely everything.

This will help you track your spending more closely and make it easier to find areas where you can cut back. Some people recommend creating as many budgeting categories as possible, including for example:

  • Housing
  • Utilities
  • Food
  • Transportation
  • Entertainment
  • Health care

If there’s something that doesn’t fit neatly into a category, come up with a name for it that will help you remember what it is. For example, “clothes” or “misc.”

You’ll also need to factor in any debts you may have.

Step #3: Get your budget to zero

Once you have a full list of your expenses, it’s time to subtract that amount from your income. Then, figure out if you are close to zero.

This is where you will likely have to make adjustments.

There are two ways to get your budget to zero- either spend less than you make (aka cut spending) or make more money.

If you want to stay out of debt and save money, it’s important to do one or both of these things. It may be difficult at first, but with a little bit of effort, you can get your budget under control and start saving for the future.

Budgeting is an extremely important tool to have in your financial arsenal. It allows you to have more control over your money and can help you make more of it. By following a few simple steps, you can get your budget to zero and start saving for the future.

Step # 4: Track your expenses

In order to be successful with a zero based budget, you have to be willing and able to track your expenses. This means being mindful of every penny that goes in and out of your account – ALL month long!

By tracking your expenses, you’re ensuring that every penny goes into the right place. This enables you to see where your money is going and how you can save in specific areas.

Expenses tracking apps allow you to easily record, categorize, and analyze your spending. They let you see how much money you spend on different categories of items from groceries to travel and more. Some of the most popular apps are Simplifi, You Need a Budget, and Qube Money.

This also makes tax season less daunting because you’ll have a complete record of all of your transactions.

You can also use this information to refine a realistic budget that works for you.

Step # 5: Make a new budget for each month or paycheck

Creating a new budget every month is an important part of zero based budgeting. This helps ensure that you are always aware of your current financial situation and can make changes as needed.

It is best to create your budget before the month begins, so you have time to adjust as necessary.

A zero-based budget is a great way to get your finances in order. It can be tough to stick to, but it’s worth it because it forces you to pay attention and make adjustments.

This is why the budget by paycheck method has gained popularity in conjunction with the zero based budgeting system.

Tips to Make Your Zero Based Budget Successful

Picture of a budget and cash for tips to make your zero based budget successful.

It can be difficult to stick to a budget, but there are ways to make it happen.

Here are a few quick budgeting tips:

  • Make a list of your necessary expenses and stick to it.
  • Cut back on unnecessary spending.
  • Live within your means.
  • Find cheaper alternatives to your regular expenses.

In addition, here is what you need to make sure your money is spent where you want and not following the status quo.

You need to learn which payment type is best if you are trying to stick to a budget.

Know your End Goal

What do you want your money to do for you?

Too many times, we let life dictate how and where we want to spend money. Then, we are always chasing from behind.

To truly make your money work for you, decide on three core areas you want to spend your money. Then, make your budget reflect those values.

Understand the Flexibility of Zero Based Budget

Zero-based budgeting is a great way to stay flexible with your finances. There are no set rules to follow, and you can adapt as your life changes. The goal is to always be mindful of your spending and make sure that every penny counts.

Unexpected expenses are going to pop up from time to time, so it’s important to have some flexibility in your budget. That way, you can handle these unexpected costs without breaking the bank.

Put Most Important Expenses at the Top

When creating a zero based budget, it is important to start with the most important items and work your way down.

This ensures that you do not miss any essential expenses and that you are able to stick to your budget. It is also important to be realistic about what you can afford and to make sure that you are flexible in case of unexpected expenses.

Put in a Cushion or a Buffer

When starting a zero based budget, it is important to be realistic about what you can and cannot do.

Some people find it helpful to have a cushion in case of unexpected expenses, while others prefer to keep their spending as low as possible. It is important to find what works best for you and stick to it.

Additionally, remember that your goal should be to live within your means, not spend less than you make.

Look Ahead

When creating or following a zero based budget, it is important to be mindful of any upcoming events that may require more money.

This includes things like holidays, birthdays, and special occasions. If you know these events are coming up, you can plan for them in your budget and make sure you have the funds available.

Check out ideas for bill calendar strategies.

Sinking Funds

Picture of a jar with the various sinking fund categories on it.

One of the most important things to remember is that you need to plan for big-ticket items and one-off events. This can be done using sinking funds.

Sinking funds are special savings accounts that are specifically designated for planned expenses.

You put money into the account over time until you have saved enough to cover the expense. This allows you to avoid breaking your budget when something unexpected comes up.

Learn how to use sinking funds.

zero based budgeting Example

Picture of the zero based budget.

Zero based budgeting is a way of organizing your finances in which you spend money only on things that have an actual impact on your financial situation.

This method can help you stay mindful of how much you are spending and where it is going.

It can also help you to make better decisions about what needs to be paid off, saved for, or invested in.

Here is a basic zero based budget example:

Zero Based Budget template is a zero budgeting plan that helps you break down your expenses into categories. It provides an easy way to create budgets and track the spending in each category over time.

Can You Make a Zero-Based Budget With an Irregular Income?

Picture of a lady creating a budget

Zero-based budgeting is an excellent way to manage your finances when you have an irregular income.

Regardless of how much money you earn each month, you can create a budget that will help you save money and make the most of your income. With a zero-based budget, every penny has a purpose and you can be sure that you are making the most of your resources.

It is also helpful to “age” your money by at least one month. That means your April income will be paying your May bills.

The Best Zero Based Budget Templates and Apps

Zero-based budgeting is a methodology of budgeting that starts with the assumption that how much one has at the beginning of each period should be used to purchase only those things needed. This is different from the traditional budgeting practice of starting with how much one has at the end of the last period and using that as a basis for what needs to happen during the next period.

There are a number of zero-based budget templates and apps that are available on the internet. The following seven are some of the most popular:

1. Tiller Money

Tiller Money is a budgeting app that allows you to create a zero-based budget. This means that every dollar in your budget has a specific purpose.

It has a “Foundation Template” feature that allows expenses to be budgeted against goals in order to make sure the amount of money actually spent is at a minimum.

This allows you to create a zero based budget quickly and easily.

You can try Tiller Money for free for 30 days, and the annual cost is $79.

2. Simplifi by Quicken

Simplifi by Quicken is a budgeting app that takes a different approach to budgeting.

Rather than starting with your current income and expenses and trying to adjust them, Simplifi starts with your savings goals and works backwards. This can be helpful for those who have trouble sticking to a budget because it allows you to focus on your financial dreams rather than your current spending habits.

You can set up your own categories, limits, watchlist, and spending plan.

It offers all of the features of Quicken with the added convenience of being able to access it on your phone or tablet.

Another thing that makes Simplifi stand out is that it is ad-free (unlike Mint), which can be helpful if you are trying to stay focused while budgeting.

Enjoy your first 30 days free and then pay as low as $3.99 per month.

3. Qube Money

Qube is an app that helps you create intentional, smart spending habits.

With Qube, you have the freedom to manage your money with real purpose. Qube helps you stay on top of your finances by giving you a clear picture of where your money is going and how much you have leftover each month.

Qube Money is a budgeting tool that helps you manage your money by automatically ledger transactions and allowing you to divvy up your money into qubes. This makes it easy for you to see how much money you have in each category and click to spend.

Get started with Basic for free with 10 qubes. Upgrade to Premium for $6.50 per month.

4. YNAB

You Need a Budget (YNAB) is a popular method of budgeting that requires you to spend money from the previous month’s income. They stress “aging your money” to break the living paycheck to paycheck method.

Each month you start from scratch each month, accounting for all of your income and expenses.

YNAB is best known for its awesome support community and training.

It offers a free trial for 34 days, after which it costs $84 per year.

Best Zero-Based Budget Template For Debt Payoff

It is useful to make a debt payoff plan that starts from the zero level. This will allow you to track your progress and adjust your budget as necessary.

Using Tally is a great tool when paying off debt.

Time for you to Start with the 0 Budgeting Method

A zero based budget is a financial planning strategy where every dollar in the budget is assigned a purpose. This differs from traditional budgeting where the focus is on last month’s spending and last year’s income.

With a zero based budget, you start fresh each month and assign every dollar a job or responsibility. This way, you can ensure that your money is being put to its best use.

When you use a zero based budget template, you are able to track every dollar that you spend.

This comprehensive view gives you a clear idea of where your money is going and where you can cut back on spending. Additionally, using a zero based budget template makes it easy to see if there have been any areas where you could save money.

The best part is you are comfortable knowing that all of your living expenses are accounted for.

This means that you can spend money without worrying about jeopardizing your financial health.

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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Apache is functioning normally

May 26, 2023 by Brett Tams

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.


When you are trying to tighten down the hatches on your spending, you are doing everything possible to stick to your budget.

You are determined to stick to your budget this time around. But, you always hear that budgeting can be hard.

Well, here are some quick budgeting tips that will make sure to stick to your budget.

As most new budgeters learn, they struggle to stick to a budget for their monthly expenses. It is a natural process everyone goes through.

Budget, if you are looking for an easy button, then learn which payment type is best if you are trying to stick to a budget.

Especially if you spend a lot of time on social media, studies have shown you are more likely to overspend. So, you must learn which payment type will have you stick to a budget.

Then, you may be wondering and wanting help deciding which payment type is best for you.

Which payment types is best if you are trying to stick to a budget? Do you want to stick to a budget but find it difficult in choosing which of the many options available including budget debit cards? This guide will help you decide among the different types of payments on the market.

The Optimal Solution Payment Type Solution

The most efficient payment type is something that is instantaneous and there are no fees associated with the transaction.

  • Cash is the most efficient payment type: Cash payments are usually the most efficient and convenient way to pay for goods or services.
  • Credit cards can be a less favorable option: Credit cards tend to have high-interest rates and can lead to financial disaster if used irresponsibly.
  • Debit cards are a great way to keep your spending within your budget: Debit cards should be considered a top priority for budgeting because they keep you within your spending limits.
  • Developing a budget will help you avoid financial disaster: A budget helps you stay organized and make informed decisions about which payment method works best for you.

Today, there are so many options on which payment type to use in today’s online world.

1. Cash

Cash is a payment type that can be used to reduce debt spending. It is versatile and can be used for a variety of expenses, such as groceries, medical bills, and gym memberships.

Cash is an excellent choice for people just starting to budget and save.

It is more restrained than credit or debit cards. The envelope method of cash budgeting can be used to train your brain to reduce spending. Cash is the most traditional payment method and has the fewest drawbacks. However, you need a safe place to store your cash, and some stores may not accept it.

Benefits of Cash:

  • Cash is an excellent payment type when your financial goals are to reduce debt spending.
  • Cash is a finite payment method that prevents you from overspending.
  • You have a set amount of money to spend each month, so there’s no chance of overspending.
  • Easy to track with the envelope method: Utilizing the envelope method ensures that you are tracking your spending (i.e groceries, gas, medical bills) and making sure that you aren’t overspending.
  • Cash is a quick and easy way to pay for goods and services.
  • No Fees. No maintenance fees or interest rates as credit cards. Cash is just plain cash – printed paper of currency.
  • You can avoid high fees associated with card transactions: There are no associated fees when paying with cash, making it the cheapest option overall.
  • Cash discounts may be available. Since you are paying with cash many small businesses offer a cash discount of 2-5%.
  • You can use cash at any store: No need to carry around extra cards or checks.
  • It’s easy to get cash: You can easily get cash and make extra cash.
  • There’s no need for bank account details: No need for bank account details means you’re free from identity theft risks and other inconveniences that come with having a bank account.
  • Cash allows you to skirt some financial regulations: Because cash payments don’t fall under the purview of many financial regulations, businesses can take advantage of loopholes in the law that allow them to charge higher interest rates on loans or engage in shady business practices. (highly recommended to stay above book)

Cons of Cash:

  • Possibility of losing or stolen cash: Keep your cash in a safe place!
  • You need a safe place to store your money: Another disadvantage of using cash is that you may need a safe place in which to keep it – some stores don’t accept it as a payment method.

Why Choose Cash?

  • Total control over your money, so there’s little chance of unexpectedly running out of funds.
  • Cash is a great way to stay on budget, as you can easily track your spending and see where you need to cut back.
  • Unpleasant to spend money with cash, which can help train your brain to reduce spending.
  • Cash is a quick and easy way to pay: Using cash eliminates the need for banks, credit cards, or other forms of payment.

Verdict: Paying with cash is the best method for budgeting and saving.

Overall, cash is a great payment type when it comes to budgeting. You can immediately see how much money you’ve spent and what needs to be cut back.

You can’t make impulsive buying decisions with debit cards or credit cards.

With a finite amount you can spend, cash is an excellent choice to prevent overspending. According to research, paying with cash can feel unpleasant, which can train your brain to reduce spending as much as possible.

2. Credit cards

Credit cards offer a number of benefits, including convenience, cash back, and the ability to make large purchases or pay bills in case of emergency. However, credit cards also come with credit card debt and can lead to overspending and financial problems if not used carefully.

For many, credit cards are the easiest way to blow your budget because you don’t have control over how much money you spend.

It is possible to overspend with credit cards if you are not mindful of what you charge.

On the flip side, this is a preferred method as many credit cards also offer rewards programs that give you cash back or points for purchases. If you make the conscious decision to use credit cards, you must make payments on time to avoid penalties.

Benefits of Credit Cards

  • Credit cards are convenient: Convenient to use and don’t have to worry about losing cash.
  • Use a credit card if you are disciplined and have strict spending habits: If you are disciplined and have strict spending habits, then using a credit card can work well for budgeting purposes.
  • Flexibility on larger purchases: Some benefits that come with having a credit card include more cash flow as well as being able to make larger purchases.
  • Credit cards provide support in times of crisis: Many credit cards offer extended services that can help like 24-hour fraud protection, lost wallet services, traveler’s insurance, and many other benefits – check each issuer for details.
  • $0 Liability on Unauthorized charges: Your credit card company will not be held responsible for any charges that were not authorized by you. This means that if you did not authorize a charge in person, online, or otherwise, you will not be responsible for it.
  • Fraud protection: Check your credit card issuer, but many offer fraud protection.
  • New card introductory APR is helpful to pay down debt: The introductory APR for the new card may not last long.
  • Payments on balance transfer should be manageable: Make sure that the payments on your balance transfer are manageable.
  • Points: You can accrue points along with your spending which can be a great perk.
  • Credit card interest rates are significantly lower than payday loans: Interest rates on credit cards are usually much lower than payday loans.
  • Due Date is After your statement closes. Since your bill cycle is at least another 21 days between the closing date for your statement and the due date, it gives you flexibility. Personally, I still account for the credit card bill in the same month that it was accrued.

Cons of Credit Cards

  • Potential for credit card debt: When using a credit card, be aware of your credit limit and the interest rate that you will have to pay on your debt. Also one of the categories of debt.
  • Credit limit often leads people to spend money: The credit limit often leads people to spend money by giving them a false sense of security, when they should stick to a budget and pay attention to their credit card statement and the billing cycle.
  • Credit card overspending can lead to debt: Consider the purchase if it is essential or delay it if possible.
  • Ability to easily purchase something you cannot afford. Buying something that you don’t have the money saved up for will cost you interest fees associated and maybe even with a credit card balance transfer.
  • There are a number of fees associated with a balance transfer: Transfer fee, interest on new purchases charged to the card.
  • Your introductory APR may not be valid if you make too many payments late: If you fall more than 60 days behind on payments your introductory APR might be canceled and you may face higher interest rates.
  • Credit score can suffer from debt: When you carry a credit card balance or don’t pay your monthly bills on time, you will lower your credit score.
  • Avoid carrying a balance: Pay your statement in full each month to avoid paying interest and maximize your grace period.

Key Takeaways on Credit Cards

  • Make sure to pay attention to the dates: Don’t spend more than you can afford, and make sure you’re making your minimum monthly payments on time so that your debt doesn’t increase over time.
  • A credit card can be used for budgeting only if you’re very disciplined: If you know that overspending is NOT an issue and you pay the credit card’s monthly balance in full, then using a credit card is fine.
  • Credit card transactions usually take several days to register in the feedback system: Something to look out for!
  • You can step back into debit cards or cash if needed: If credit cards are not for you, there are other options available such as debit cards or cash

3. Debit cards

Debit cards are a good option if you want to stick to a budget because the predetermined amount of funds can help you stay within your means. Additionally, debit cards are more convenient than cash and just as accepted as credit cards in most places.

A debit card works more similarly to cash than to credit cards.

They provide an easier way to track your spending and avoid having to carry a lot of cash.

Pros of Debit Cards:

  • No Need to Carry Cash: A debit card is better than cash because you don’t have to carry a lot of paper money and change around, and they’re also safer.
  • Debit cards are faster and easier to use: Debit cards work just like credit cards – withdrawing cash, making purchases, and paying bills – but they are linked directly to your bank account, so there is no need to carry around a separate cash envelope wallet or purse for them.
  • A debit card is a good option if you want to stick to a budget: Debit cards come with a predetermined amount of funds that you can spend from your bank account just like cash.
  • Tracking payments is easy with debit cards: Your debit payments will appear on your issuer’s dashboard, which you can monitor anytime from any location.
  • Convenience: Debit cards are more convenient to use and faster than needing to write a check or carry around cash. Plus they don’t add to your debt.
  • Shopping online is easy. You can use your debit card to make online purchases with your bank account, and digital banking tools make tracking your spending easy.
  • Points: Some debit cardholders can earn points for spending on their cards, which can be redeemable for rewards such as cash back or gift cards. This is new to compete with credit cards.
  • Fraud protection is typically offered for free with most debit cards—meaning if your card is stolen or used without your permission, you can get your money back.
  • No impact on your credit report. When you use a debit card, the funds are actually withdrawn from checking or savings accounts so there is no credit reporting occurring.

Cons of Debit Cards:

  • An overdraft on a debit card can happen when a purchase exceeds the amount of money in the checking account, leading to overdraft fees.
  • Funds on hold with fraudulent charges. If your account gets hacked, your losses will be limited since most banks protect their users against fraudulent charges and online purchases with their accounts. However, those funds will be held while they investigate and you may be liable for $50.
  • No chance to improve your credit score. Since you are not borrowing money, you are unable to improve your credit score.

Debit cards are a great way to keep your spending within your budget and avoid overspending which can lead to many detrimental issues.

Regardless of the overdraft fee, debit cards are still better than cash because they’re safer and easier to carry around.

4. Checks

Checks… do people still write checks? Why yes they do!

Checks offer a few benefits as a payment method, even though they are slowly being replaced by more modern options.

This can help you keep track of your spending and make sure you do not overspend. Additionally, if you ever need to dispute a charge, having a check can be helpful in proving what you paid for.

What is a check?

A check is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer from the check writer’s account. The date is usually written in month/day/year format. The signature of the check writer is usually on the line below “Pay to the order of.”

There are three main types of checks:

  • A cashier’s check is a check guaranteed by a bank, drawn on the bank’s own funds, and signed by a cashier.
  • A certified check is a personal check for which the bank has verified that there are sufficient funds to cover the payment.
  • A personal check is one that you write yourself and that is not guaranteed by the bank.

Pros of Checks

  • Checks are still a payment option: Checks are one of the traditional payment methods, but it is slowly dying out because of modernization.
  • Physical written record. It can be helpful to have physical copies of checks in addition to digital records through the bank.
  • You need to make both digital and physical copies of the check: Save check stubs but also transfer the information to a budgeting system.

Cons of Checks

  • Saving check stubs is helpful, but you still need to transfer the information to a budgeting system: Useful for tracking spending, but you’ll likely want more detailed records than just check stubs.
  • Not as convenient as credit or debit cards.

5. Apple Pay or Apple Cash

Apple Pay is easy to use and convenient since you only need to connect your smartphone to your cards and bank accounts via the app.

It is easy to use since you just hold your phone up to the reader and wait for the payment screen to appear.

You can even get cash back with apple pay.

Pros of Apple Pay:

  • Apple Pay is easy to use and convenient: You only need to connect your iPhone to your cards and bank accounts via the app.
  • You don’t need to carry any extra cards or cash: No need for additional cards or cash when you’re out and about
  • You can use Apple Pay on different devices: You can use Apple Pay on your iPhone, iPad, and Mac.
  • Transactions are secure: Your transactions are secured with Touch ID or a passcode.
  • Set up Spending Limits for each user. This way you can make sure you (or others with authorized access) are not spending more than you intended. Learn how.
  • Protection of Data during transactions. Your actual credit card number is changed to a different digital number, which allows limits your card number’s exposure.

Cons of Apple Pay:

  • Not widely accepted (yet). This method of payment is 100 percent guaranteed. While many stores offer apple pay, not all do quite yet.
  • The same rules apply if you load apple pay with a debit or credit card drawbacks include late fees, interest rates, and overspending: Keep that in mind when choosing Apple Pay as your payment method.

6. Mobile wallets like Google Pay, Samsung Pay, Venmo, or Zelle

Mobile wallets are digital payment systems that allow you to pay for items with your smartphone. Many people find mobile wallets are very convenient and becoming a traditional method of payment (such as credit cards).

With mobile wallets, you are making digital payments without having to carry around cash or cards using just your smartphone.

Mobile wallets are easy to use and provide instant payment convenience, making them perfect for shopping online.

Pros of Mobile Wallets:

  • Mobile wallets use credit cards and debit cards: Connect your smartphone to your bank accounts and use it for digital payments.
  • Mobile wallets are easy to use and convenient: Instant payment convenience makes them perfect for shopping online as well.
  • No need for cash or cards: No need for cash or cards.
  • Strong secuirity features provide privacy and security features that ensure your personal information is safe from data breaches and unwanted charges.
  • You can make purchases without having to show your identification: You can make purchases without having to show your identification.
  • Additional Layer of Security. Additionally, mobile wallet data is protected with verification, such as fingerprints.

Cons of Mobile Wallets:

  • With Zelle and Venmo, it is easy to send money to the wrong person or add an extra zero and send more money from planned. More often than not, it is difficult to recover your money.
  • You need to be disciplined when using a mobile wallet: Pay attention to late fees and interest rates, as well as the amount you spend in a month.

7. Prepaid Cards or Gift Cards

A prepaid card or a gift card could be right for you. The advantage of these is the mere fact that you reached the limit is enough to deter overspending.

It can make you think twice about whether you need to purchase an item or not.

Pros of Prepaid Cards and Gift Cards

  • Easy to use: Prepaid and gift cards are easy to use and manage your finances with.
  • The mere fact that you reached the limit is enough to deter overspending: It can make you think twice about whether you need to purchase an item or not.
  • No strings attached: No need to worry about any fees associated with the prepaid card once activated.
  • Privacy: The prepaid card does not track your spending or use any personally identifiable information.
  • Credit Score Doesn’t Matter: Your credit score does not matter when obtaining a prepaid card.

Cons of Prepaid Cards or Gift Cards

  • Losing a prepaid card is not a fun experience. Contact the prepaid card issuer right away to protect the funds on the prepaid card.
  • Fraud protection: Consider whether your prepaid card issuer offers any theft or fraud protection, as not all providers offer this feature.
  • Prepaid cards have limits on how much money you can load onto them, which can be frustrating if you need to make a large purchase.

8. PayPal

PayPal is a very convenient way to pay for items online or in person. It is widely accepted and used by many people.

PayPal is a digital payment service that offers convenience and ease of use. You can use them to send money to people or pay for online purchases.

However, because these services can only be used online, they should not be relied on as your sole method of budgeting and tracking expenses. Instead, consider Paypal in combination with another budgeting tool, like a spreadsheet or app, to get a fuller picture of your spending.

Pros of PayPal:

  • PayPal is one of the most popular online payment methods: Widely accepted and used by many people.
  • You can use them to send money to people or pay for online purchases: Help you review your spending prior to purchase.

Cons of Paypal:

  • Easy Target for phishing scams. A phishing scam is when someone tries to trick you into giving them your personal information, like your password or credit card number. They might do this by sending you an email that looks like it’s from PayPal, but it’s not. Or they might create a fake website that looks like PayPal. If you enter your information on these sites, the scammers can then use your account to make purchases or send money to themselves.
  • Reputation for poor customer service. This is evident in their customer service ratings, which are some of the lowest in the industry. The majority of complaints against PayPal revolve around poor service received when asking for assistance with fund freezes and account holds.

9. Cryptocurrency (ie: Bitcoin)

Cryptocurrencies offer a new and innovative way of handling payments. They’re not yet widely accepted, so there’s potential for businesses to get in on the ground floor with this new technology.

However, because cryptocurrencies are so new, it’s uncertain if they will be regulated or not. This could pose a challenge for businesses down the road.

Pros of Crypto

  • Not subject to the same regulations as traditional currency, which makes them appealing to those who want to avoid government intervention.
  • The valuation of Crypto changes rapidly. If you are smart with crtyple this is a great way to spend your crypto coins.

Cons of Crypto

  • Cryptocurrencies are not accepted everywhere: Cryptocurrencies are not accepted by most organizations yet, which it makes it difficult to use them in day-to-day life.
  • It’s unclear if cryptocurrencies will be regulated: It’s uncertain if cryptocurrencies will be strictly regulated or not. This poses a challenge for those who want to use them as a payment method.
  • Bitcoin and other cryptocurrencies are still in their infancy: Bitcoin and other cryptocurrencies have only been around for a few years, so they may still face challenges in the future.

Here are the most popular budget apps today:

Other Payment Methods:

ACH payments

ACH Payments is an excellent way to pay bills and other financial obligations: You can easily set up a billing cycle for recurring payments, making it safe and convenient.

Fewer people are aware of your transactions when using ACH payments, reducing the chances of fraud or theft.

Key Facts:

  • Fewer people know about your transactions when using ACH payments, reducing the chances of fraud or theft.
  • Your checking account information is not shared or accessed by the system in any way.
  • You can quickly pay bills and other expenses with ACH payment: Financial institutions offer this as part of their deals.
  • When setting up recurring bills with ACH payment, you are aying your bills on time is important for maintaining a good credit score.
  • Pay attention to your check account balances: Make sure you have enough funds in your check account to avoid paying overdraft fees.

Money orders

A money order is a document that orders the payment of a specified amount of money. Money orders are convenient because they can be bought at many locations, including post offices, banks, and convenience stores.

To get a money order, you will need to fill out a form with the payee’s name, the amount of the payment, and your contact information. You will then need to purchase the money order with cash or a debit card.

To cash a money order, you will need to take it to a bank or post office. You will need to show identification and sign the back of the money order. The teller will then give you the cash for the payment.

  • More secure than cash: Money orders are more secure than cash because they don’t require a bank to make the transaction.
  • Less convenient: money orders are less convenient because you must purchase them in person.
  • Able to trace. They are also more secure than cash because they can be traced if lost or stolen.

Wire Transfers

Wire transfers are a more secure way to transfer money than traditional methods like checks and cash. These are sent through the banking system and are usually processed within two business days.

Typically, wire transfers are used when sending and receiving large sums of money (over $10000).

  • More secure than cash: Wire transfers are more secure than cash as the bank verifies there is enough money to make the wire transfer.
  • Fees involved with using a wire transfer. Most institutions charge for handling a wire transfer.

What method of payment is best?

Cash is the most widely accepted form of payment, but debit and credit cards are very popular.

The payment method that is best for you depends on which one helps you to stick to your budget and spend less money. The goal is to be financially stable.

What method is best for sticking to a budget?

Picture of a lady determining what method is best for sticking to a budget

There are several different types of budgeting methods that people use in order to manage their finances. Many people focus on using the 50/30/20 method, in which each percent corresponds to a different category of expenses.

There are plenty of budgeting tools available today to make sure you stick to your budget.

You need to find what works best for you. At the end of the month, you want to spend less than you make. That is the winning combo!

1. Budgeting App

There are many budgeting tools available online, which can be helpful as it can be easier to track your progress and budget over time.

You can use various popular budgeting apps like Quicken, Qube Money, or Simplifi.

These apps can help you track your spending, set goals, and stay on track with your budget.

2. Paper and Pen or Simple Spreadsheet

Some people find that they prefer using a simple spreadsheet or paper budget. This may be due to personal preference or because they find it easier to understand and use.

Additionally, using a paper budget may help you stay more organized as you can physically see where your money is going.

Options to get you started include our own budgeting spreadsheets or using an automated system like Tiller.

3. Envelope budgeting method

The cash envelope system is a good way to stick to a budget because it is rigid and based on envelopes and cash. You can’t get more money until your cash payday. So, this system helps you track your spending and budget better.

However, using only cash can have drawbacks as having large amounts of cash on hand can be risky.

The envelope method gives you a sense of control over your spending and makes it more tedious to write down your transactions. If you find writing down your transactions tedious, the envelope method may be too much for you.

4. Know Your Budget Categories and Track expenses

Tracking expenses is essential to move ahead financially: Knowing what you have spent in each category will help you make better financial decisions.

Be specific with your budgeting categories. Don’t make it too complicated. Always remember to include household items, clothing, and groceries when tracking expenses.

5. Prioritize your Budget Plan

A budget can provide a realistic picture of your finances, help reduce stress related to money matters, and guide you toward achieving your goals.

Creating a budget can help ensure that you are able to meet your financial obligations and still have money left over for savings and other goals. A budget can also help you track your spending so that you can make adjustments if necessary.

  • Make a budget plan: This will help you stay on track and make sure that you are spending your money wisely.
  • You decide where to spend money: A budget helps you set future goals and achieve your financial goals.
  • Creating a budget can help reduce stress: If you tend to get stressed about money matters, creating a budget can give you peace of mind.
  • A budget has other benefits beyond financial ones: If you want to achieve something in life, creating a budget can help guide you in the right direction.
  • See where to cut back spending. You can also look at your past spending habits to see where you can cut back. Sometimes it may be necessary to save more in order to achieve long-term goals, like buying a house or having a wedding. Always be mindful of your budget when making payments and spending money.
  • It’s a three-step process that involves basic math: Making a budget is simple and requires only basic math skills.
  • Stay on track: Making a budget plan will help you stay organized and keep track of your expenses.

A budget plan will help you stay on track and make sure that you are using the best payment type for your budget.

Making a budget is an easy way to save money. By following a few simple steps, you can keep track of your expenses and make sure that you are spending your money wisely.

Which type of payment is best for sticking to a budget?

Picture of a calculator and graphs for which type of payment is best for sticking to a budget?

One of the main pros of using cash as a method of payment is that it is the most efficient way to keep track of your finances. This is because it is very easy to budget when you are only dealing with cash.

However, many people prefer debit or credit cards are the best type of payment. They are more convenient than cash and can help you keep track of your spending. However, if you have a bad credit history or a low credit score, credit cards may not be the best option for you.

  • Cash payments are the most efficient: Most convenient and easiest to keep track with cash envelopes.
  • Credit cards allow you to accrue points along with your spending: These are a great benefit and one that can be a perk if handled well as part of your budgeting process. As long as pay them off in full each month to avoid credit card debt, high-interest rates, and other negative consequences.
  • Debit cards are also a good option for sticking to a budget. They can be used like credit cards but with less risk of debt.
  • Cash-based payments are a newer option and are more reliable: May not have as many negative consequences as other payment methods such as credit cards or loans.

What Not to Use when you are Trying to Stick to a Budget

You need to steer clear of these types of payments if you want to be financially stable person.

Personal loans

Personal loans are a risky way to budget. However, if you need the money for an emergency or unexpected expense, a personal loan can be a lifesaver.

There are many risks to consider and other ways to lower your spending before resorting to a personal loan.

  • Loans can cause budgeting problems: Loans can mess up your budget and make it difficult to stick to spending plans.
  • Taking out a personal loan just for the sake of having money can disrupt your budgeting: Consumers often borrow money in order to pretend they’re doing better financially than they really are.
  • Borrowing money is usually not a good idea: When you borrow money, you may find that you cannot handle seeing low checking account balance, which can lead to deeper debt problems.

Payday Loans

Payday loans are a bad option for someone looking for a long-term solution. They are expensive, and there is a high chance that the person will not be able to pay back the loan.

The interest that is charged is also high, and it can add up quickly.

Write bullet points about what happens with a payday loan

  • Payday loans can trap people in a cycle of debt, as they are often unable to pay back the loan in full on the due date.
  • When someone takes out a payday loan, they are borrowing money from a lender in a short amount of time, usually two or three days.
  • Payday loans are often expensive, with interest rates that can be above 300%.

Debt Consolidation Loans

Debt consolidation can be a good way to manage your debt because it can result in a lower monthly payment and extended payments may impact your financial plan. You can use a debt consolidation calculator to estimate how much debt you can afford before taking out a consolidation loan.

Debt consolidation loans also provide convenience because they have lower interest rates than payday loans. However, be careful when consolidating your debt because it is possible to overspend and lose your introductory APR.

  • You may be able to pay off your debt with one monthly payment: A consolidation loan often results in a much lower monthly payment than all of your previous monthly payments combined.
  • Extended payments may impact your financial plan: Take a look at how these extended payments will impact your financial planning.
  • You can estimate how much debt you can comfortably afford: use this tool – Tally .
  • It is possible to overspend with debt consolidation: If you spend more money than you planned on your day-to-day expenses, this could increase your debt. Consider if the purchase is necessary or if it can be delayed.
  • You may lose your introductory APR: If you fall more than 60 days behind on payments, you will likely lose your introductory APR and may even trigger a penalty interest rate.
  • You need to be careful when transferring a balance: Transferring a balance can also forfeit your grace period and you’ll need to pay interest on new purchases charged to the new card.

What type of payment method is best for sticking to a budget?

Picture of a budget worksheet for what type of payment method is best for sticking to a budget.

There are a variety of payment methods available, and each has its own benefits and drawbacks. It’s important to choose the payment method that’s best suited for your business and budget.

A payment method that allows you to stick to a budget is the best option.

FAQs

There are three main types of payment methods: cash, debit cards, credit cards, and cash-based payments.

The envelope budgeting method is a simple way to create a budget. You will need envelopes and divide your money up into the different categories that you spend money on. You will then put the corresponding amount of money into each envelope. This method can be helpful if you have a hard time sticking to a budget.

The zero-based budgeting method is a more methodical way to create a budget. With this method, you track every penny that you earn and spend. This can help you to see where your money is going and make adjustments accordingly.

A debit card is a plastic card that is linked to a checking account. Customers can spend money by drawing on funds they have already deposited. An overdraft on a debit card can lead to overdraft fees, which have high-interest rates.

A credit card is a plastic card that allows customers to borrow money up to a certain limit in order to purchase items or withdraw cash. Using a credit card can help build credit or improve your credit score.

There are a few different ways to use a credit card. You can use it to check your balance and review your spending history, which can be helpful in staying accountable.

Credit cards also offer online tools which make the analysis of your spending easier which can be helpful in tracking your budget.

Finally, you can use a credit card to rebuild your credit score by using it responsibly and paying off the balance in full each month.

Which payment type can help you stick to a budget?

When it comes to choosing a payment type that will help you stick to a budget, there is no one-size-fits-all solution.

The best payment method for you will depend on your specific needs and preferences.

When you are creating a budget, it is important to consider which payment type will help you stay on budget. Different payment types work better for different people, so it is important to experiment and find the one that works best for you.

As I stated for me, I have learned how to use credit cards to maximize cash back. But, I learned how to budget with cash when first starting.

Please pay attention to your budget and how it changes over time, as different payment types may work better at different stages of your life.

Consequently, I hope that this guide has given you a better understanding of the different payment types available and helped you narrow down your options. There are a variety of payment types that can help you stick to a budget, so it’s important to research each one carefully.

I highly recommend using an app to track your expenses and know where you spend your money. By developing a budget and choosing the right payment type, you can stick to your financial goals.

Know someone else that needs this, too? Then, please share!!

Source: moneybliss.org

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Apache is functioning normally

May 17, 2023 by Brett Tams

Does it seem as if the second you earn money, it goes flying off to pay for food, gas, utility bills, dining out, student loans, and everything else on your plate?

It can be hard to track where your hard-earned cash goes, and that’s where a budget can help. A budget provides a framework to see how much is coming in and what it’s being spent on, and it gives you the chance to recalibrate so you can, say, put more into savings.

Zero-based budgeting is one method that can help you account for every collar so you better understand your cash flow situation. This in turn can help you better manage your money and hit your financial goals.

How Zero-Based Budgeting Works

When building a zero-based budget, your income minus your expenses should equal zero. In other words, with zero-based budgeting, every dollar of your income has purpose.

This doesn’t mean you won’t have any money in your bank account, since you might want to allocate some of your budget to savings. Rather, using this method could help you know exactly how much you will spend, save, and invest in any given month. And depending on your monthly needs, these figures may change or stay the same.

Recommended: How to Switch Banks

How to Build a Zero-Based Budget

As with most budgeting techniques, you might want to start the zero-based budgeting process by making a list of your expenses. Start with your fixed and necessary expenses first, such rent, utilities, groceries, transportation, insurance payments, and debt payments.

You know that these payments have to be covered each month, so you could allocate income to each necessary expense. Tally these expenses and subtract them from your total income. The resulting figure could be the amount available for discretionary expenses.

Next, you could allocate those remaining discretionary funds. These expenses could include money that you pay to yourself to save for short-term goals such as an emergency fund.

Or you might target longer-term goals such as stocking an online retirement account, or other farther-along savings goals, such as a down payment on a house.

Other expenses might include entertainment, clothing, and non-essential items.

Keep in mind that some expenses might be seasonal, such as vacations or holiday gifts. You might want to determine how you’d like to save for these expenses. You may choose to allocate funds in a single month, or it may make sense to set aside a small amount over each monthly period. It might take a little bit of extra planning to figure out how much you’ll need and how to divide up the cost.

Some expenses may also be variable — for example, say you’re hit with an unexpected bill when your car needs a new transmission — and these can be tricky to deal with. One way you could build them into the budget is to have a line item such as “savings for variable expenses” to help you cover them. This line item would be different from your other savings.

A simple example of a zero-based budget for someone who makes $6,000 a month might look like this:

Rent/Housing $3,500
Utilities $200
Car payment $300
Gas $200
Groceries $400
Savings $750
Eating out $200
Entertainment $150
Student loan payments $200
Credit card payments $100
Total $6,000

In this example, the person’s income less their total expenses — $6,000 minus $6,000 — equals $0. As mentioned above, every dollar has a job to do.

Finally, remember that with a zero-based budget every dollar should have a purpose. So if at the end of figuring out your expenses, you find yourself with some extra cash, it needs to go somewhere. You might want to put a little extra toward savings or pay off some debt quicker.

But if you don’t allocate the funds, they might get spent. The problem is you may not know where you spent that money, and keeping track of it is the whole point of this exercise.

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Tracking Your Budget

You might want to keep an eye on your spending throughout the month to make sure you’re sticking to your budget. This process could be dynamic. If you find that you don’t need to spend as much on one budget item one month, you could shift that extra cash into another category the next month.

If you find yourself needing extra money to cover an expense, you could look for places to save. If you find yourself with little wiggle room in your budget and need to add to or boost your existing expenses, you might want to increase your budget with extra sources of income, like a side hustle.

A Zero-Based Budget on an Irregular Income

Many people earn a variable income, whether that means being a seasonal worker or a freelancer whose earnings ebb and flow. A variable income can pose some challenges to building a zero-based budget, but they’re not insurmountable. First, you could consider maintaining a buffer of cash, or a cash cushion, to help cover your expenses as your income expands and contracts.

You could then use your previous month’s budget as a base for the current month, using the buffer to cover any shortfalls. You might want to replenish this buffer when you have extra money in a month. You may also try building your budget based on a low estimate of your monthly income to increase the odds that you’ll be able to stay within your budget.

An irregular income means that you might spend more time adjusting your budget as you income fluctuates.

Recommended: How to Transfer Money

Other Budgeting Strategies to Consider

There are other budgeting methods that may be worth a try. One rule of thumb, called the 50-30-20 rule, allocates percentages of your income to different categories. When using this rule, 50% of income goes to necessities, like housing, utilities, and food. The next 30% of income goes to discretionary spending, and the final 20% is allocated to retirement accounts and savings.

You may also consider a budgeting system known as reverse budgeting, in which you focus on savings goals rather than expenses. To use this method, you might want to determine your short- and long-term savings goals, such as a downpayment on a house, paying down student loan debt, and retirement.

You could figure out how much you need to save for those goals and then automate the savings. The money could be taken from your checking account and put into a savings account each month. You might use the money left in your checking account to pay for necessary expenses first, and the rest you could use however you’d like.

The Takeaway

Budgeting can help you take a closer look at how you’re spending your money and how you want to be spending it. By taking time to work through a budget, you could make sure that your money is going exactly where it needs to go.

Budgeting can also help you stop spending on things that aren’t important to you (things you may not even realize you are spending money on) and can help you fund the things you care about most.

It’s a good idea to find a budgeting strategy that works for you and that you’ll stick with. Budgeting apps can be a good solution to help you track your purchases, and some financial institutions offer excellent ones. An online account like SoFi Checking and Savings is one example: You spend and save in one convenient place and can keep track of your money on the dashboard. What’s more, your money earns a competitive annual percentage yield (APY) and you pay no account fees, both of which can help your money grow faster.

Bank smarter with SoFi.


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The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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Source: sofi.com

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How to Take Charge of Expenses in Your Business

April 18, 2023 by Brett Tams

Running a business can be daunting, especially if you are a new entrepreneur. One of the most significant challenges business owners face is to keep track of expenses keeping in mind that it is an essential to ensure that your business remains profitable and financially stable in the long run. So, how do you keep […]

The post How to Take Charge of Expenses in Your Business appeared first on Credit Absolute.

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The Secret of Financial Security: Consider Living Below Your Means

March 21, 2023 by Brett Tams

Many celebrities are happy living modestly despite the lavish lifestyle at their finger tips. If they can do it, so can you.
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Spend Less, Save More With the Cash Envelope System

March 16, 2023 by Brett Tams

Here’s how a simple hack can help you become a budgeting pro.

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How to Use the 50/20/30 Rule as Your Budgeting Plan

March 15, 2023 by Brett Tams

Learn how this budget plan works, how to put it into action, and if it’s the right fit for you.

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10 Top Budgeting Lessons to Improve Your Money Management

February 23, 2023 by Brett Tams

Looking for some financial stability in your life? These tips will help you find the right budgeting style for you.

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Tips to Spend Less Money

February 4, 2023 by Brett Tams
illustration of coffees and other things we spend too much on

If you need tips to spend less money, you’ve come to the right judgment-free zone. I feel like I should introduce myself. “Hello. My name is Elissa, and I am an unconscious spender.”

(“Hello, Elissa.”)

“I give myself a $200 allowance every two weeks, but when the cash is gone, I use the credit card or hit the ATM. A hundred here, a hundred there. I feel like that Fast Cash $60 button is a slot machine in a casino!”

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The Top Benefits of Living Below Your Means

February 1, 2023 by Brett Tams

Learning how to build habits that can help you spend less and save more is essential for building wealth.
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