Does it bother you that you are working for several years now and you still have not invested in anything valuable yet? Where did all your earnings go? Are you the type who earn then spend? Do you still have problem paying off your bills despite having double jobs? It is easy to say that you’ll save up for something but sometimes it’s hard to control your spending once you have the money on hand. You’ve been dreaming to get your own car but you can’t start saving to pay for the down payment because when you go to the mall on a payday, you find yourself impulsively buying stuff you hardly need. Now, discipline is very important in managing your money. I understand that it is a problem for a lot of people how they manage their personal finances and I’d like to share some of the tips on how can you manage your money.
- Set clear goal
If you have a goal, you have a guide on how you can get from point A to point B. Not having a clear goal in life is like being lost in the dark woods, you don’t have the slightest idea how can you go out. If you are still renting your house, set a goal to buy a house in 5-10 year time. Be committed to your goal and work hard to achieve it.
- Plan for the future
Anticipate what’s going to happen next. If you will get a car and you know you are able to pay for the down payment, think about the two year term you have to pay the remaining balance for you to finally own the car. Will you be able to pay the monthly dues? If not, then do not get the car just yet. If you will spend all your money on an item, think about the things that you might need to spend on afterwards.
- Stick to your budget
If you set a budget on anything you’d spend on, you will be able to control how you spend your money. This is a guide for you to not spend more than what you earn. It will help you to only spend on important things and avoid those that are not important.
- Pay off your debt
Prioritize your debt. Often times, loans have penalty if you’re not able to pay on time. Instead of you moving forward, paying your debt late will only make it bigger and the time you spend paying it become longer. Think of ways on how you can pay your debt as soon as possible. You can do a garage sale for things that you won that you don’t necessarily need anymore which other people can still use.
- Look for areas to cut your budget
If you have a set budget of $50 for personal items, see if you could cut it down to $40 while still being able to buy all your necessities. Try to look for cheaper products but still effective. Save the amount that you’re able to cut or spend it on more important things like paying your debt.
- Setup up an emergency fund
You may not always have a job. Always make sure that you have enough savings to sustain you without any income for at least 6 months. This will relief you from any stress during your job hunt/sudden illness that disallow you to work for a period of time.