How to Save up for a Shopping Spree
Track your spending., Base your budget on monthly expenses., Plan for fixed and variable expenses., Plan for emergencies., Create room for savings in your budget., Make adjustments as you go.
Step-by-Step Guide
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Step 1: Track your spending.
It isn’t hard to keep track of how much you spend on large and recurring expenses like rent, but you may not realize how much money you spend each day on small things.
Keep track of what you spend your money on in a spreadsheet or notebook so you can use that to gauge your future budget.Make sure to record what you buy, not just where.
That way it will be easier to categorize your expenses later.
Include everything, even things you feel confident you will remember. -
Step 2: Base your budget on monthly expenses.
Once you have tracked your spending for long enough to determine your monthly expenditures, sort them into categories.
With your expenses sorted you can determine the totals you spend on different things per month and identify places where you can reduce costs.Sort your expenditures into categories such as: housing, utilities, eating out, gas, entertainment, and food.
Some of those categories are required expenses (such as housing) but others may be unnecessary.
Look at how much money you spend eating out, or going to the movies each month for instance.
Compare your monthly expenses to your monthly income and see if there’s any room for savings. , Using your list of monthly expenses, you can establish a monthly budget moving forward.
First plan for your fixed expenses (or bills that don’t change per month) such as your rent or mortgage.
Then allot room in your budget for variable expenses that may shift each month, and finally for non-essentials.Fixed expenses include rent, cell phone bills, cable and internet, and monthly subscriptions for things like gym memberships.
Variable expenses include gas, groceries, and some utilities.
Non-essentials are things you don’t necessarily need.
Non-essentials would include money you spend on music, movies, going out with friends, and so forth. , Along with your regular expenses, you may want to allot some room in your budget for emergencies if you can afford it.
Having some money set aside just in case your car breaks down or you lose your job can be a big relief in case of the worst.
You may want to establish an emergency savings before saving up for your shopping spree Having enough money to cover your bills for a while if you lose your job, or enough to repair your car if it breaks down can pay off in spades the next time something bad happens.
A common rule of thumb is to have two months of your regular income in savings just in case. , Once you have determined your expenses and established a budget, see where you can reduce costs to allow for savings for your shopping spree.
Start by looking at reducing your non-essential expenses.
If you get coffee every day on your way to work or school, you may want to start having your coffee at home to reduce that expense.
Saving just two dollars a day can add sixty dollars a month to your shopping spree fund. , You should take your budget seriously, but remember that it isn’t set it stone.
You may find that you underestimated how much some things cost per month, or you may decide that you’d rather save a little less and spend a little more on entertainment.A budget it a “fluid document,” which means it can change as you need it to.
Try your best to stick to your budget and consider any changes to it seriously before putting them into practice. -
Step 3: Plan for fixed and variable expenses.
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Step 4: Plan for emergencies.
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Step 5: Create room for savings in your budget.
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Step 6: Make adjustments as you go.
Detailed Guide
It isn’t hard to keep track of how much you spend on large and recurring expenses like rent, but you may not realize how much money you spend each day on small things.
Keep track of what you spend your money on in a spreadsheet or notebook so you can use that to gauge your future budget.Make sure to record what you buy, not just where.
That way it will be easier to categorize your expenses later.
Include everything, even things you feel confident you will remember.
Once you have tracked your spending for long enough to determine your monthly expenditures, sort them into categories.
With your expenses sorted you can determine the totals you spend on different things per month and identify places where you can reduce costs.Sort your expenditures into categories such as: housing, utilities, eating out, gas, entertainment, and food.
Some of those categories are required expenses (such as housing) but others may be unnecessary.
Look at how much money you spend eating out, or going to the movies each month for instance.
Compare your monthly expenses to your monthly income and see if there’s any room for savings. , Using your list of monthly expenses, you can establish a monthly budget moving forward.
First plan for your fixed expenses (or bills that don’t change per month) such as your rent or mortgage.
Then allot room in your budget for variable expenses that may shift each month, and finally for non-essentials.Fixed expenses include rent, cell phone bills, cable and internet, and monthly subscriptions for things like gym memberships.
Variable expenses include gas, groceries, and some utilities.
Non-essentials are things you don’t necessarily need.
Non-essentials would include money you spend on music, movies, going out with friends, and so forth. , Along with your regular expenses, you may want to allot some room in your budget for emergencies if you can afford it.
Having some money set aside just in case your car breaks down or you lose your job can be a big relief in case of the worst.
You may want to establish an emergency savings before saving up for your shopping spree Having enough money to cover your bills for a while if you lose your job, or enough to repair your car if it breaks down can pay off in spades the next time something bad happens.
A common rule of thumb is to have two months of your regular income in savings just in case. , Once you have determined your expenses and established a budget, see where you can reduce costs to allow for savings for your shopping spree.
Start by looking at reducing your non-essential expenses.
If you get coffee every day on your way to work or school, you may want to start having your coffee at home to reduce that expense.
Saving just two dollars a day can add sixty dollars a month to your shopping spree fund. , You should take your budget seriously, but remember that it isn’t set it stone.
You may find that you underestimated how much some things cost per month, or you may decide that you’d rather save a little less and spend a little more on entertainment.A budget it a “fluid document,” which means it can change as you need it to.
Try your best to stick to your budget and consider any changes to it seriously before putting them into practice.
About the Author
Kathryn Phillips
Kathryn Phillips has dedicated 4 years to mastering advertising. As a content creator, Kathryn focuses on providing actionable tips and step-by-step guides.
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