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Evaluating Your Expenses
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From time to time, it is important to evaluate your expenses because they can change so much. The budget that you created last year and have been sticking to faithfully might have to be redone once you realize that your income or expenses have recently changed.
One item that can be reexamined is housing. Do you feel as though your rent or mortgage is too high and putting undue strain on your finances. Many experts recommend housing to be at most 40% of your income. If you are paying significantly more than that, it may be time to consider downsizing, especially if you have at least one room in your residence where someone does not live.
Another item that be evaluated is education. Did you know that most hiring managers do not prefer one qualified applicant over another simply because of where he went to school? Public or community schools usually charge significantly less than private and prestigious ones, so perhaps it would benefit you to reexamine where you or your loved one is going to school and see if transferring makes financial sense.
Among these large expenses that should be reevaluated, there are also smaller expenses that should be checked because they can really add up!
- Coffee and other daily indulgences
- Hobbies
- Name brand clothing
- Season tickets
- Dining out
- Cell phone packages and extras
- Television
- Magazine and various other subscriptions
Most of these things are things that we need in some form or another, but by evaluating what are our needs and what are our wants, we will greatly benefit financially.
