Earning money is never easy unless you are born with a silver spoon as they say. You work for 8 or 9 hours a day for five days a week, sometimes six. So when it’s pay day, the initial instinct is that you splurge because you deserved it for all your hard work. Yes, you definitely deserve some reward for working hard but do not spend all your money at once. You should also think about your future.
There are way more important things to allot your money for than buying the newest phone in the market or buying branded clothes and bags.
In this article, we will give you some tips on how to become wiser in handling your finances.
Keep records of your earnings and expenses
To help you monitor your money, you should make sure that you list down everything – from your income to your expenses. You should know the exact money that you receive monthly from your day job to any sidelines or any extra incomes. Then, you should also list down all your expenses from bills you are paying every month to allowance, gas, food and other things. It is best to keep a notebook or download an app to help you record all these things. At the end of the month, you will be able to review where your money has gone to. Then, you can make necessary adjustments so you can save more the following month.
Spend according to budget plan
It is also advisable that you come up with budget plan. It is easier to spend when you have a set budget that you’re following. You should allocate money for your allowance and make sure that you are spending within that budget only. It will force you to become more disciplined and resourceful. This is also applicable when going shopping. You should only spend according to your budget to prevent you from overspending. Now, if you see a really nice pair of shoes but you already spent your set budget buying clothes then you should learn to stop and walk away.
Open savings account
You should also make sure to have a separate savings account. It is best to allot money to go to your savings and then deposit this money as soon as you received your paycheck. This way, you will have money for rainy days.
Invest for your future
Lastly, you should consider investing for your future. When availing health or life insurance, using a health insurance calculator will help you know just what you need can be a good start. In case you have good savings then you may also consider starting a small business.
You should learn to handle your finances carefully. Do not give in to temptations of short-term gratifications. Learn to distinguish what you need and what you don’t. That way, you will be able to allocate your hard-earned money to more important things especially for your future. Make sure to follow the tips that we discussed here and become wiser in handling your finances.