Now, why am I talking about money? Often times people avoid this topic and find it 'sensitive' (as did a friend who decided to unfriend me on facebook recently because of posts about saving money) and usually it is because they have bad or no practices at all for handling money. That being said, I have listed 5 tips which I have read and applied to myself that have proven over time to be very useful to anyone who is looking to save or budget their money a little better than they currently are.
Tip #1: As soon as you get your money, (whether from your payslip, a cheque, a deposited amount or your husband/parent handed it over to you) save at least twenty percent and make sure it is placed somewhere you cannot easily take it from. Don't place it in an account with an ATM card which you have access to, an easy open piggy bank or under your bed matress (so guilty of this during my teenage days). Trust me, if it's easy to get to, it will be easy to spend.
| Image taken from himachal.nic.in |
Tip #2: Learn to prioritize your needs and put your money where it should be. Create a list of the important things that need to get paid on a regular basis. In our household's case it is the following:
- rent
- water
- electricity
- drinking water
- groceries
- milk for our toddler
- wet market needs
- transportation costs
- meal costs
- doctor visits
| image taken from www.sheknows.com |
Tip #3: Give yourself your own allowance. You need to set aside a small amount that you can use to buy yourself some of the things you want. In my case, it is a measly 1000 per month or 500 per pay day. Ridiculous if you think about it, but since I've budgeted my money well, believe it or not, I hardly find any need to spend it these days.
Tip #4: Don't bite off more than you can chew. As my mom used to say: live within your means. If that Prada bag is just too expensive for you right now, walk away from it. You don't need brands or other designer stuff to make you a better person. In fact, getting something you can't really afford right now might even be bad for you because it will leave you in debt for days to come. Learn that with all the good things comes a right time to enjoy them and if you can't afford it right now, there's always a next time.
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| taken from en.paperblog.com |
Tip #5: Stop keeping up with the Joneses. Whether it's the latest milk tea fad or everyone is wearing Chuck Taylors and you are wearing Advans, you don't always need to be in the 'in crowd' especially if keeping up with the trends is keeping your money out of your pocket! Same goes for your children. You don't have to give them the latest gadgets, the grandest clothes or the most sophisticated pram out there. The best things you can give your children are good values and quality education and trust me, you need money for both. Why both? Do you think being poor and driving your kids to the poor house will make you look like a credible role model? I think not. That and we all know, education costs an arm and a leg these days!
There is nothing wrong with indulging yourself or others from time to time, but living too lavishly when your finances are a little tight can mean the end for some. It can also mean debt, bad credit ratings and ultimately a bad reputation.
With those five tips being said, I wish to close this entry with a simple reminder to all of you: Saving is not just about putting some money away for a rainy day, it's about spending too, but wisely and in a manner that makes every cent of your money matter.
~K
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