Hard earned money versus spending.
We all work hard to earn money, to support the family, to make ends meet or to travel the world. There are varying reasons, but mostly, it is to make sure we live a more comfortable life, which everyone deserves.
While we may always find a reason to spend, it does not mean that it is always practical to. That is why we sometimes find ourselves out of money before the next paycheck. Either that or we live from paycheck to paycheck, which is difficult on so many levels. We understand because we have been there. It is painful and frustrating, to say the least.
This is the reason why we have to be practical when it comes to our spending habits. To help you with that, here are our practical and effective tips to save money:
Make a list of your expenses
Often, we would wonder where the money has gone, and you can’t remember what we have spent it on. It happens to us often. That is why we learned to keep track of our expenses. Not only you would know where the money goes, but you would also realize there are things you should not have purchased and this would raise awareness the next time you want to buy something you want but not need.
Save a portion of your pay
Make this a non-negotiable every payday. Take 20% off your pay, without fail. You can set up an auto debit with your bank, or you can do it yourself. The latter is the more practical approach because you would hardly notice something was taken from your account and added to your savings. Regardless of how you do it, make it a point to save something, no matter how little, every time it is payday.
Think before you spend
Most people are impulsive buyers, don’t be one of them. Before you spend on something, give it 24 hours and think it through. It would be most likely that you will not buy something if you know you don’t need it and can live without it. Make a comparison between what you want and what you need. Often, you only buy something because everyone has it and you must have it too, never mind if it is not important or necessary.
Don’t use your credit card
We were told once that if you need to use your credit card, it means you cannot afford it. So don’t, if you can avoid it. Credit card companies charge a lot on interests and the money used to pay on it can be spent on something else. Use cash as much as possible.
Remember that you deserve to have the things you need and you deserve to splurge once in a while. Balance it out, and you will be alright. We should save for tomorrow, but it does not mean we have to forget to enjoy life today.