Many of us are not even aware of our expenses and we do not know where our hard earned money is being spent.
It is imperative that we keep a check on our finances by noting down every penny which is spent.
Maintaining a monthly budget is of utmost importance so that we know how effectively our finances are being spent.
It is absolutely surprising to note that even the small expenses pile up to a huge amount and unless we make a note of it, we would not be aware of how much it totals to.
A simple needless expenditure can really eat up your income if you actually sit down and calculate it.
Just multiply this amount by twelve for arriving at the annual expenditure and again multiply this by five to arrive at the amount you spent on this item for five years.
This is the amount which you have spent on unnecessary items and this amount would also have earned interest, had you not spent it.
Hence, it is important that you make a budget.
If we know how to manage these small expenses, we are surely on the road to enjoy financial freedom.
Make a list of all the little things because they really count.
Even saving two dollars daily would amount to fourteen dollars a week if you eat out all seven days.
This makes it a really big amount.
Do not forget to add the interest which would have got accrued to this amount.
If you see carefully, there are many places wherein you could save on good amount of money.
It is important to set short term goals as well as long term goals which are achievable.