Personal Finance Lesson #5

How can I handle small expenses

                First of all what are small expenses? Well, small expenses are things that cost about ten dollars or less, and that is just an estimate. They are things like fast food, dollar tree things, small toys, movies, music, etc. Even though things like that can brighten our lives in the moment, in the long run they can deprive you of credit card payments, a car, or even a house.

                First things first, gather all of your receipts from a month. Look over them. Are there many small expenses? Do you see any patterns? If you see a pattern, say, you went to starbucks every Sunday, you can try and make a budget for it. You need to manage your money! You need a budget! I can’t say it enough… If you have any money at all YOU NEED TO BUDGET IT! Small expenses can be fine once and a while but if you don’t budget for them you could end up in some major problems or dept. Another tip to handle small expenses effectively is to pay all of your small expenses in cash. It is as easy as that. Your brain fires of pain signals when you fork over dollar bills, and you feel major loss. If you swipe a credit card you do the exact same thing over and over again whether you have hundreds of dollars or ten.

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