Consumer Watch: Good personal finance skills no matter your income

Having good personal finance doesn’t mean you have to make a lot of money. One of the most common complaint is that people feel they cannot save money because they do not earn enough. Though many families are living pay check to pay check, there are some small and big changes you can make to build your savings no matter your financial situation.

Setting a budget is always going to be point number one.

“If you don’t know how much you are spending every month, and how much you have coming in every month, then it is really hard to determine– how much do I have to save,” says Ted Hughes, Hughes Warren Inc, Co-President.

Numbers have to show you what you have and what you don’t. A small change you can make to have some money to save — eat out less. Another option is to lower the speed on your internet, get a less expensive cable package, or cut cable out altogether.

If small changes are not going to cut it, think of making a bigger sacrifice to get on financially stable ground. A big change could mean getting a second job, and using that money only for saving or paying down debt.

Another major change could be downsizing your living space. Moving to another part of town or to a smaller place could save you big bucks on your regular monthly bills.

“I think if you know where you are at, then you can create that road map to where you want to go,” says Hughes.

Having good personal finance skills doesn’t mean you need to have a lot of money, but depending on your current take home pay and debt, it could mean a temporary sacrifice.

If you decide to move to a smaller place to save money, you’ll be saving on more than just rent or your mortgage because often utility costs will also save you money.

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