Do you run out of money before the month is out and have no idea where your money went? Your monthly spending could have sprung a leak and you are in danger of sinking. Stop the sinking ship and repair the leak with these saving tips.
- Set up a budget first – you can’t plug the financial leak if you don’t know where the money is going. Write down all your expenses for the month. You need to plan your spending.
- Work out your fixed expenses for the month and set that money aside – you now know what money you have left to spend. If there is very little left, then you need to cut back on your expenses.
- Also set aside once off expenses coming up – you might have a once off expense e.g. license renewal or school supplies.
- First save, then spend – if you get your salary early or have a bit of spare cash, then first allocate some of it to your emergency savings. You could follow the 50/50 rule on that. Save half and spend half.
- Allocate funds for personal and impulse spending – you work hard for your money and deserve to spoil yourself. Follow the planned ‘spoiling’ rule.
- Divide into weeks – once you have worked out how much remains, you can divide it into the weeks that are left in the month. This weekly budget will make you more aware of your spending and force you to shop wisely.
- If the temptation is still too great? – Draw the money in cash and leave your cards at home. Remove temptation from the equation. You often lose track of how much you spend when you swipe a card.
- Think before spending – ask yourself:
- Do I really need it?
- Can I live without it this month?
- Will it eventually return the money I spend on it?
- Free activities – not everything costs money. Organise events with friends that have free entrances or have a picnic or a dinner at a friends’ house instead of eating out. Quality time together need not cost money. Everyone can bring a plate of snacks or their own drinks.
- Your friends most likely also have a leak – You can support each other and be each other’s spending conscience.
- Plan your meals – this is a big money saver. Make your lunches at home and bring your own coffee. You will be surprised how much you spend on take out coffee and lunch. – gulfnews.com
Your deVere Acuma adviser could help you repair the leak in your finances with a budget. [email protected]
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.