People tend to think of their finances as somewhat disconnected from their everyday reality.
We tend to spend our discretionary funds unconsciously and neglect to consistently track our spending. With a little foresight and small changes in the way we think about our money, we can completely change our lives.
Decide what is important to you in the short and long term, and make saving for those goals a part of your budget.
A good place to start is to track your everyday expenses. Spend a few weeks tracking what you spend to identify your spending patterns.
Ask yourself the following questions to determine whether a purchase classifies as a need or want. – Do I want this, or do I need it? – Can I live without it?
Set aside a small portion of your budget into a separate account for these potentially inevitable expenses.