Have you reached your income goal? Are you saving enough or are you just making your ends meet? Fret not, there would definitely be many who are probably nodding a yes for these questions because money related problems and challenges happen to anybody and everybody irrespective of their earning capacity. We shall guide you how not to get captured in this stress web and manage money effectively for a peaceful life. Read on!
#1. Not knowing where and what you spend
One major and common problem with all those who are worried of managing money, either spend too much or waste too much. Yes, there’s a difference. Go through your debit card or credit card statements and find out where most of your money has gone. Was that all for your needs? How much have you spent unnecessarily, meaning some accessories or apparels that you had bought just because they were cute knowing you can’t wear them. Spot them. Go through atleast 3 months statements. Remember, what you can’t measure, you can’t manage!
#2. Spending on unwanted things
Again, look into the monthly statement. Are all the purchases made really matter? How many of them were bought just because you can’t afford to lose your status? It can be too cliché to mention but still truth always remains the same, remember, there are millions and zillions of people who are living on less than you spend for your coffee. So, do think of ways to reduce your expenses. Instead of having a coffee at a luxury lounge, can you have it in a normal shop or a restaurant? We’re definitely not trying to bring you or your status down. Try, small changes like these in your lifestyle will really add up a lot of difference to your life over time. Just, make that move and try.
#3. When and how do you save matters
Making all the expenses you want and saving whatever is left at the end of the month, will be the biggest mistake you ever make. That way, we’re sure you can’t even save 10% of what you had planned. If you’re truly concerned about saving, get your money automatically transferred from your salary account to savings account.
#4. Don’t fall prey for the Marketing Tactics
Banks, credit cards and loans are few of the many debt traps of the modern marketing world. With malls sprawling up in every corner of the city, spending has become the new societal necessity. Don’t fall for credit cards and blame the banks later. Every single penny you borrow today is tomorrow’s money. Know your personal responsibility and affordability and then swipe your cards.
#5. Deal with Your Debt Soon
To have debt is not a bad thing but when you don’t take timely initiatives to settle them, it can be your worst nightmare. You need to have a realistic solution to cover all your debts that work best for your life style. Don’t ever try to fix them all of a sudden because there are chances you might fall all over again. Don’t be afraid to ask for help in terms of planning. Taking the first step is all that is needed and the rest will happen over time. Don’t expect it to settle at one go because it didn’t happen overnight.
#6. Live on cash
Put all your debit cards and credit cards away for a week and use only cash. You know, it’s very easy to map if you can afford something or not, with cash. Okay, when is the last time you used cash to pay for your purchases? Is the day out of your sight? Well, try this for the upcoming week. List all your expenses (necessary ones alone please), draft your budget, take the exact cash and pull off the cards from your wallet. See, how it goes!
Have you now roughly got an idea on how to manage your financial problems? Sketch a realistic plan with all the ideas that you want to implement and accomplish your goals. Once you’re a few weeks on your plan, sit down and review it. Compare your expenses after the new plan with that of the previous month and see how things have changed.
Take on more such new challenges and set them accordingly to your lifestyle. Let us know if any of these helped you.