If you haven’t been tightening your financial belt lately amidst all the recent drama with the economy then there is probably one of two reasons:
You’re independently wealthy.
You haven’t been paying attention.
Prices on gas, groceries, and other essentials have been creeping up steadily for a while now, which has most people paying more attention to how they spend their money. If you’re one of the few people who hasn’t really noticed any difference in what things cost then there is a pretty good chance that you don’t have a very firm grasp on your personal finances.
Think about it: If you plunk down a credit card for every single purchase and then make the minimum payment every month then probably wouldn’t notice that the balance of your credit card has reached ridiculous levels. If you’ve watched the alarmist news stories about the cost of everything and you’ve replied with a shrug and wondered what all the hubbub is about, then you might be in financial trouble and not even know it.
It’s time to take a look at your spending. Nobody really knows if the economy is going to get worse before it gets better. Will you be ready if everything starts to cost even more than it does now? What do you do if your credit card gets maxed out? What do you do if (gasp!) your credit card company lowers your available credit?
The point is this: If you haven’t started scaling back on your frivolous spending then the time has come. If you are a true Budget Fashionista then you already know how to get your hands on the stuff you want without spending a fortune. The trick is to apply this to your other spending. How can you save money on groceries? How can you save money on gas? How can you save money on everything?
Even if you pay attention to your finances really well and haven’t yet felt an economic squeeze, it doesn’t hurt to practice spending less and saving more. Don’t obligate yourself to big purchases right now unless you can actually afford it. Don’t quit your job if you don’t have something already lined up.
And for goodness’ sake, don’t use your credit card with reckless abandon.
