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Over a third of working Americans are living from paycheck to paycheck, according toFox Business.
There seems to be a disconnect between the average Americans financial situation and the state of the economy.
Radio personality and personal finance author Dave Ramsey recently gave aninterview to TheStreetdiscussing this disconnect.
Specifically, he addressed overspending as the main driver of discontent with the economy.
Heres what he had to say.
The money expert previouslylisted 10 everyday ways youre wasting money.
They can control only their own behavior in response tofluctuating economic conditions.
People are anxiety-ridden by the economy, and theyre boxed in, Ramsey argued.
Yet they spend like theyre in a prosperous economy, buying superfluous stuff instead of necessities.
Its shocking how people are budgeting while complaining about the economy.
They have to spend more to buy the same things and are left with less money in their budgets.
Ramseys solution is to reduce your spending.
You dont keep jumping in puddles.
You get inside, close everything up and huddle until the storm passes.
Ramsey recommended sticking to the necessities and cutting out nonessential purchases as much as possible.
5 Tips for Cutting Unnecessary Spending
But how do you go about cutting back on your spending?
The majority of Americans say theyre overspending, so clearly, its a common problem.
Changing your spending habits isnt easy, though.
The suggestion to just stop buying anything you dont need doesnt help anyone make meaningful changes to their finances.
Instead, try these actionable tips to reduce your unnecessary spending.
Thats more than $1,800 per year.
Often, after 24 hours pass, youll either forget about the item or realize you didnt need it.
Themore budget-friendly optionis to cook at home more often.
The savings will add up over time.
Removing these apps from your phone removes some of that temptation as well.
Make a Budget
Budgets may not be glamorous, but they are helpful.
Create a budget with limits on what you’re free to spend in each category.
For example, you might budget $100 toward entertainment each month.
Once you hit that limit, you stop buying items in that category until the next month.
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