Money is a commodity no human can live
without. It has become a necessity that people virtually do anything to have
it. It has become everyone's dream not to luck money and not worry about it.
But this has tend out in the opposite.
No matter how much money you make, you
need to know that it is always possible to spend less than what you earn, yet save and still survive
Here are tips to help you spend less and
have peace every month.
Use the 30 day rule
Do you know what the 30 day rule is,
it about waiting 30 days to decide on a purchase. Did you see, think, or imagine anything that
interests you? Do not make the purchase right away. Do not do. Hang on. Give it
some time. More precisely, 30 days. This time will also serve you to analyze
consumption alternatives: is there not a cheaper equivalent item? A more
functional alternative? An economically viable option with a more attractive
cost. Only those with a controlled household budget know the work that can help
prevent impulse spending. To avoid counterproductively spending money, it is
essential to adopt some simple personal financial management techniques, and
the 30-day rule is one such technique.
Pay yourself first!
Pay Yourself First is a very common
concept when it comes to finance and personal financial planning. Pay yourself
first it is not worth confusing with
"satisfactory" expenses, for example buying a mobile phone, new
clothes or changing cars. That is, every month, you will set aside a
predetermined amount of your income and will try to make that money work for
you before you start spending on your obligations and leisure. The best way to
ensure that you will save a portion of your income for every salary you receive
is to create a savings or automatic investment account where every month a percentage
of your salary goes and consider your savings or investment as another expense
you must pay. This money is not for giving, but to secure your financial
future.
When you decide to pay yourself first,
you make sure that the specified amount of money - which you plan to save - is
actually what is going to the said account every month.
Take control of your credit usage
Credit cards can be a trap. Good
financial education and good planning prevent missteps that can disrupt finance
control. Those with credit cards should make a habit of asking themselves if
they really need to make a purchase, avoiding impulse spending.
Due to lack of control or financial
planning, many people end up consuming more than they can and, when heavily
indebted, often blame their financial imbalance on their credit card.
Every tool, if misused, can do great
damage. On the other hand, if used wisely, it offers its user several
advantages and benefits.
If used without discipline and
planning, this “plastic money” is likely to cause financial uncontrollability
and exorbitant debt, which will be very difficult to repay.
However, if used wisely, your credit
card will surely be a great ally of your finances and will give you access to
some benefits and facilities.
Track your spending
Believe it or not, it's impossible to
keep everything in mind. Some shopping here, a new pair of jeans there, a win in the
afternoon.In short it difficult to keep
track of all his expenses.
If you really want to change your
financial habits, you must absolutely follow all your expenses. Which means all
the receipts, the checks, the invoices ... EVERYTHING has to be taken into
account
Today there are countless financial
control applications that can help you track and record all your expenses in
real-time via your smartphone, which helps prevent forgetfulness.
If you are old fashioned you can use a
Notebook. Write down all your expenses. Whether you spend a few dollars at the
coffee shop or write a big check to the mortgage company, write down every
penny you spend.
If you track expenses for budget
purposes, be sure that you track your spending on an average day. Spending much
more or much less than usual will not give you a true picture of how you spend
your money. Track your expenses usually, and then use this information to
determine where you can make cuts or how much money you can budget for certain
expenses.
Write a list before you go to the market
So if you go shopping, there is
nothing like making a list of what you really need before leaving home.
Creating a list before going to the
supermarket is especially important. This helps to buy items that fit a good
diet and prevents waste.
It's not that you can't make one or
the other exception, but you will be sure of what you need at home, and you
won't be so easily influenced by campaigns, promotions, that even though they
maybe interesting, sometimes in terms of prices for your home. Economic
savings, caution must be exercised.
This caution you should take is
because sometimes, with promotions we buy more and then we can not always use,
such as fruits, vegetables, and meat, which end up spoiled and we eventually
throw it away.
Use energy saving bulbs or LED, turn off
lights and plugs when not in use
Be energy prudent, very import to cut
down cost. When it comes to electricity
we do some mistakes like not turning the light off, that plug that is faulty and, that
old appliance which is continually on
though not in use. Turn off the Ac or the heater if not in use. I know some can leave
their Ac's on especially in their offices till the next day. Save cost turn off,
replace the necessary and you will be fine.
Sell off things you do not need.
Go through your thing and get rid of
useless things you have no need for.There are millions of things in the world -
imagine if we wanted to bring into our home everything we thought it would be
worth bringing? There would be no space for a piece of hair to occupy. So we
have to select and truly curate what we really need or want to have. These
could be things you wear a lot, things you don't wear as much, but you may always
need and the things you love that makes you happy whenever you look at them. First,
storing something you don't use takes up space that could be freed up for more
important ones. Second, that someone may need this object somewhere and you can
make some cash out these. If you do not have anyone read to buy go on OLX. Basically,
OLX is a website where you can sell your stuff without any paperwork. Just register
advertise and sell.
Have a goal
Without a goal in mind, you will
hardly be motivated to keep saving.
Then, once you have analyzed your
needs and spending, it is time to reflect on your wishes for the future.
Put on paper what you want to achieve,
how much you will need, and what you will have to do by then to achieve it on
time.
That way you will use your money more
consciously as your efforts will be directing you to your dreams.
When you spend less, you incorporate
new financial habits into your life and best of all, by the end of this walk,
you will feel more relieved and much closer to your achievement.
Let's start changing habits today?
The state of our financial lives are the result of our habits,
and our habits, in turn, are the fruit of what we repeatedly do over days,
weeks, months, and years. One
of our greatest challenges as a human being is to change our habits because we
all have natural resistance to change. Good habits and bad habits all come from
the same process and fully understanding how to liberate yourself from that
cycle and start making the good decisions that will lead to good habits that
will improve your financial life and finally get you to where you’ve always
desire to be.
Define what you really need
You have a number of things on your
list the question is do you really need them. You have subscribed to many
services but do you really need them. Go through all subscriptions and See which
services are just extra spending on your budget, and might not be missed if
you start cutting them.
You don't have to impress others
Stop trying to impress others it unnecessary
and it a rat race. Many people buy the latest model of everything like phones
not because they need to replace the current one, but to impress others. Some buy
- or rent - larger houses and apartments not because they need bigger spaces,
but only to impress others. So ask yourself on your current way of your
financial life whether you are doing it because you need them or your busy weekly shopping
is to impress your coworkers, or get the attention of your neighbors. Am sorry if
this the case you are not being prudent in the use of your finance. You
only end up heavily indebted and poor at the long run.
