Suppose you received your salary or pocket money just a few days ago and you have already spent more than half of it. What will you do? Ask your parents or friends to lend you some money? Or maybe chip away at your savings? But wait, is it the right thing to practice? The answer is NO! Money is a hard earned asset which should be spent wisely. Therefore, here are few tips to stop yourself from spending money unnecessarily:
1. Assess your habits. Think about any hobbies, activities or things you spend money on every fortnight like fashion magazines, junk food, shopping, etc. and cut down on the things that are nonessential.
2. Maintain a record of your expenditure on a daily basis and review it at the end of every month.
3. Make a chart where you list things which you want vs the things you need.
4. Keep all the bills in one place so as to retain a sense of expenses.
5. Technology can come to use. Install a good budget planning application on your phone and track it regularly.
6. At the beginning of every month, when you receive your stipend, make a budget for yourself and follow it strictly.
7. Savings are very important. Keep a portion of your pocket money/salary in the saving box every month and forget to use it until emergency strikes.
8. Ditch the ‘oh-so-fascinating’ sales.
9. Before heading out for shopping, make a list of items to buy and work on a strict budget. Don’t take extra money.
10. Use cash instead of credit cards for your transactions, which will put a limit to the expenditure.
11. Save on household expenditure by doing chores by yourself, like cleaning, washing, gardening, driving.
12. Avoid spending on outside foods whether it is restaurant meals or packed ones. Home cooked meals are cost effective and healthy too.
13. Test your spending habits by only buying what you need for 30 days; you will be happy to note how much you can save by focusing on buying things you need, rather than things you want.
14. Reduce the use of private vehicles. Switch to public transport which is pocket friendly and at the same time eco-friendly.
15. Use electricity and water judiciously. Avoiding wastage so as to cut down on the bills.