Question

List two techniques people can use to help them control their spending on categories of expenses, and explain how these techniques can be effective

Answer 1

There are many ways by which people can put a upper limit for their expenses and can control their spending on categories of expenses. Some of the ways are-

1) Budgeting

The best and most effective way to control your expenses is to prepare budget for all your expenses. This is a better way of planning your expenses well in advance. The budget will set the maximum limit that can be used for the given expense.

This is a very effective technique to control the expenses. You can make budget for your travel, food, entertainment, etc based on your earnings and preferences. By this way unnecessary expenses can be cut out and expenses can be managed in most efficient way.

2) Saving

Another technique to control your spending is to start saving. Prepare yourself on how much you can save each month, it will automatically reduce your disposable income which you can spend (which is left after saving) and only that can be used for consumption purpose.

This is also a good technique to control your expenses. By this way the unnecessary expenses can be cut out.

Hope it helps!