The Federal Deposit Insurance Corp. has provided consumers with tips for better management of their spending.
According to the agency, the key to controlling spending is to “have a good plan.”
In developing a plan, list “how much money you take in over a typical four-week period.” Then, budget those resources by comparing them with your expenses for the same time period. Include savings as an important objective and don’t forget to factor in taxes and insurance premiums. Also, “pay attention to small expenses” such as snacks and entertainment, which can take “a toll on your finances.”
Spend time thinking of “ways you can control your spending.” Jot these down on a list.
Consider, too, if your expenses include deducted expenses that are automatically coming out of your credit card accounts. You may no longer need these recurring charges.
Determine if the benefits paid for by the recurring charges are already being received “elsewhere or if you can negotiate a better deal.” Common examples of these expenses, the agency states, include memberships that are no longer needed, “extras on cable TV subscription, or certain options on a cell phone package.”
For more information, go to the fall 2014 issue of the FDIC Consumer News, available free online at www.fdic.gov/ (“Is It Time for Your Financial Checkup?”).
Opinions are solely the writer's. Joseph Pellicciotti is a lawyer, professor and vice chancellor at Indiana University Northwest.