Final answer:
To save more money, carefully managing your spending on entertainment and diligently checking your phone bill can uncover opportunities to cut costs. Redirecting these savings towards your financial goals or an emergency fund contributes to improved financial health.
Step-by-step explanation:
Watching your spending on "fun" and checking your monthly phone bill can help you save more money by highlighting areas where you can reduce unnecessary expenses. An effective budget allows you to identify discretionary spending on non-essential items, like entertainment subscriptions or frequent dining out. By cutting back on these costs or finding more affordable alternatives, you can increase your savings. Similarly, by scrutinizing your monthly phone bill, you may discover services you don't use or find cheaper plans, thus saving on regular expenditures.
The fundamental purpose of a budget is to keep track of income and expenses to determine wasteful spending, which can free up funds for savings or important financial goals. Being mindful about where your money goes, and regularly balancing your checkbook, are vital habits for effective money management. When you have a surplus in your budget due to spending less on non-essentials or lower bills, that extra money can be allocated to an emergency savings account, which experts suggest should hold at least three to six months' worth of expenses.