Читать книгу Mutual Funds For Dummies - Eric Tyson - Страница 58

To save more, you must reduce your spending, increase your income, or both. This isn’t rocket science, but it’s easier said than done.

For most people, reducing spending is the more feasible option. But where do you begin? First, figure out where your money is going. You may have some general idea, but you need to have facts. Access your banking records for your checking account, debit card, credit card, and any other documentation of your spending history, and tally up how much you spend on dining out, operating your car(s), paying your taxes, and everything else. When you have this information, you can begin to prioritize and make the necessary trade-offs to reduce your spending and increase your savings rate.

Earning more income may help you save more to invest if you can get a higher-paying job or increase the number of hours you’re willing to work. Watch out, though: Many people’s spending has a nasty habit of soaking up increases in income. If you’re already working many hours, tightening the belt on your spending is likely better for your emotional and social well-being.