Money Tips

Managing money isn't fun for most, but there are simple ways you can cut back without noticing a thing. Pick up a few easy tips from people around the city.

How do you go about managing your money?

By Maxine Giza

The thought of creating a budget may be enough to make you cringe, but it doesn't mean you have to give up your favorite things. With just a few simple changes in your everyday lifestyle you can stay out of the red without feeling like you are making any major sacrifices.

• To budget your money, first find out where it is going. Start by tracking everything you spend money on for a month. While the process can be tedious, software such as Quicken can help you monitor your spending habits. Or, simply look at your recent bank statement. Then look at your take-home pay and see if the amount you spend is more than you are earning.
• Experts recommend breaking down your expenditures into two categories: essential (i.e. food) and non-essential spending (i.e. entertainment).
• There are also fixed and variable expenses. Fixed expenses stay the same from month to month, such as rent. Variable expenses change and include things such as eating out. It may be impossible to alter some monthly expenses, such as rent, but the amount spent on entertainment for example, can be altered in order to help you stay within your budget.

Early in your career, essential costs such student loan payments and health insurance may chew up a considerable amount of your paycheck. If you find yourself spending more than you make, don't whip out the credit card. Get creative and think of ways to cut back on your spending where you can.

• For example, learn how to cook so you don't have to eat out as much is one easy way to eat less expensively.
• When you do go out, skip appetizers and drinks.
• Before making an expensive purchase, do some research to see where you can buy it cheapest.
• Stay away from the vending machine at work. A 20 oz. bottle of soda can easily run you $1.25 or more, but at the supermarket you can buy two liters for the same cost.