Knowing your monthly expenses is a good first step toward saving money

If you’re broke at the end of the month wondering whether you can afford a night out for fun or even to buy gas, a Northern Virginia financial consultant has advice.

If you’re broke at the end of the month wondering whether you can afford a night out for fun or even to buy gas, a Northern Virginia financial consultant has advice.

First thing, you need to get a sense of today’s true monthly expenses to create as accurate a budget as you can.



“Last year, you may have been spending $200 to $300 a month on food. Well, now that may be $400 or $500 a month on food,” said financial professional Chase Lopez from ILG Financial in Stafford, Virginia.

“This is something that you really want to be on top of on a monthly or every six-month basis, because prices are changing very rapidly right now. So you really want to make sure that you’re still spending X amount of dollars on food, gas, all those different things,” he said.

Lopez recommends checking bank statements monthly to get a sense of what you’re spending for the past six months or so for a few different reasons.

Financial professional Chase Lopez from ILG Financial in Stafford, Virginia. (Courtesy ILG Financial)

First, it can allow you to identify ghost payments you might have forgotten about and or might want to cancel.

“A lot of times, you’ll have a subscription that you don’t [remember] that’s just been auto drafting out of your account,” he said.

“Once you can get rid of all those extra expenses, that maybe are unneeded, that can really start to shape how you can save for your future.”

Another reason to check bank statements is related to what Lopez calls one of the most common mistakes people make: underestimating how much they’re spending to eat out for lunch on workdays at the…

Read complete post here:
Source link