Debt Consolidation Credit Counseling In Phoenix

Recently, with the current economic and debt crisis, saving money is being encouraged throughout the country. Despite the economy having prospered in recent decades, there still exists the possibility of being out of employment for both yourself and your partner. If you wish to ride out such a situation, it is highly recommended that you save 2-3 months worth of salary to cope with such a dire situation.

However, do you ever wonder why, even though you and your partner seem to make good salaries, it is impossible to save any money? You feel that the money quickly disappears just after seeing it arrive. you are really trying to save money but you find pretty much an impossibility.

Putting money away for a rainy day is not an impossible task as some people seem to think. The first major obstacles that is normally faced by those trying to save money is simply organizing their finances. The reality is that you are spending more money than you think and it's very likely that you are unaware of this.

One great way to saving money is by keeping track of what you spend. All you need to have do this is a notebook of some kind and a pen or pencil. You must take this everywhere with you to record all your purchases, to the exact cent. Even if the purchase may still small and meaningless, you must keep track of it.

You should try to do this exercise over a 2-week time frame. This exercise can be tough to complete but just remember that it is one of the most effective ways to get rid of bad spending habits. After doing the exercise for 2 weeks, you will have to examine all your spending. You will quickly realize how your money disappears because of bad spending habits.

Many who complete this task are shocked to see how much money is spent on small items. 1 dollar on a newspaper, for example may seem quite insignificant but over the course of a year amounts to 365 dollars.

Once you find out how much money goes towards what seem like insignificant items, 2 things will take place. Firstly, you will not be too happy about your spending habits. It isn't uncommon for people to spend thousands of dollars in a year on objects such as newspapers, coffees and small treats. As a result, people get angry with themselves about this. After getting angry with yourself, you will react by seeing how to reduce your spending. As a result, you will make a decision as to what items are necessary and what aren't.

In order to really start saving money, it is highly recommended that you keep constant track of your finances. It's a useful exercise to see where your money is really and what you can do to remedy the problem and start to serious save some money.