Fat wallet

Many of us have thin wallets because we simply spend too much. A job loss or a leaky roof can suddenly empty a wallet too, but for many, overspending is the real problem. To add more weight to your wallet, you may just need some organization and a disciplined plan to reduce spending.

Get organized

Getting organized is half the battle to improving your financial well-being. First, you need to identify where your money goes. So, write down every penny you spend for a month to see exactly where your paycheck is going. Then, subtract your monthly spending from your monthly income to see where you stand.

Next, add a little digital organization in the mix. Mark your calendar for when bills are due. Then use BillPay to set up automatic payments well ahead of their due dates to avoid draining your wallet on late fees or penalties. Schedule an automatic transfer from your LGFCU Checking Account into your Share Savings Account to put a little money away each week as a buffer for emergencies, job loss or an unexpected home repair.

And your last step to being organized is to get a copy of your credit report at annualcreditreport.com. You’ll want to verify the accuracy of your report and see if there are areas you may need to fix. Now you’re ready to make a plan you can stick to for saving your extra cash.

Practice disciplined spending

Once you make being more organized a priority, commit to sticking to your plan. Let’s focus on a few great ways to do this:

  • Set specific and measureable goals so you know where you’re going.
  • Commit to living within realistic boundaries you can stick to.
  • Make a few sacrifices and and recognize which luxuries you can live without.
  • Check progress toward your goals each week or month, and make adjustments to spending as needed.
  • Get support from family and friends. Share your plans and give them permission to remind you of your purpose if you go off track.

Visualize your plan

To simplify and help you keep track of your money, consider a budgeting app. You’ll want something that gathers information from all your financial accounts so you can view your transactions in one place. The goal here is to see where your money goes and maybe where it shouldn’t. 

With organization, commitment, discipline and a solid plan, you’re on your way to stretching your paycheck and fattening your wallet.  

The advice provided is for informational purposes only. Contact a financial advisor for additional guidance. 

Share this article: