3 Simple Tips That Save Your Budget
Do you know that people always complaints about working so hard and yet pays miserably, but in actual fact, they often overlook the fundamentals that could cost them prodigiously. In general, people tends to weighs monetary terms heavier than going through the process of evaluating the facts that influences such behaviors.
I’m going to share some pointers here, I think it may help to re-access the situation rather than immersing themselves in a complaining dead end.
1. Sit down and Prioritize your expenditure
There are too many things in life that we would want to accomplish. It can be ranging from a very ambitious plan like becoming a CEO of a company or to just allocating a time in the evening to watch a TV serials.
Sometimes, people don’t realize that subconsciously there have been a pre-fixed daily life going on in repetition such as spending on items that are redundant (especially electronic gadgets), without any proper plan to rush in for investment, indulging in finest expensive restaurants way too frequently etc. This would easily resulting in overspending and the keypoint here is that we may lost track on the expenses.
Evidently, prioritizing our life has become the foremost important criteria if we want to live in style on a budget. When priorities are set, it is a lot more manageable to regulate the rate of flowing expenses, resulting a much better financial control.
Let’s take a look at some priority settings in general but not limited to:
1. Set priority for Urgency vs Importance
There is a slight difference between urgency and importance to-do list. A simple illustration would be a final reminder of utilities bill needed to be paid to avoid a catastrophic cut of electric power, water and gas supply. On the other hand, it is important to pay your mortgage loan but it’s not as urgent as a final reminder of the utilities bill.
2. Set priority for Necessity vs Good-To-Have vs Deficient-Excess-Possession
People may argue buying a shoe is a necessity, however, too many shoes well-displayed in the shoe cabinet is a luxury. Necessity is an unavoidable need or inevitable, things like a pair of working shoes, undergarment, refrigerator will be considered as a basic necessity. Air-conditioner, 60 inch 3D SMART AMOLED curved TV, a crystal chandelier lights are consider as a Good-To-Have items.
Transportation is a basic need for us to travel from point A to point B, this can be satisfied by public transportation such as subway train, buses, cab/taxi, or even a self-own car. Lavishing with an exquisite glamorous sports car is a total Deficient-Excess-Possession, of course, having said that, people who can afford such a complete luxury may not be reading this.
2. Good Food Fight
In today’s fast-paced society, more and more people has lesser and lesser time to spare, hence eating out is the only choice.
This phenomenon is overwhelming all working adults from different countries around the world. I think this is just a fact that people nowadays are getting lazier and not wanting to put in extra effort into dish-washing, cleaning up and all the oily-cooking stuff.
I am sad to see such transformation, as compared to my younger days whereby my grandma would cooked every meals – the love, cares and deepest affections were completely filled within the meals.
I strongly encourage everyone reading this to spend some time and effort to cook at home, from none to occasionally to frequently. With this, it’s not only promotes harmony within the family, it also creates the joy of being together enjoying home cooked food and strengthen the bonds.
The thing that matters most, it will actually helps to save up a significant expenses to live in style on a budget. In due time, I will also be sharing on some read up for easy cooking and healthier choice, so do stay-tuned and check out for latest info frequently.
3. Beware Of Budget Burnout
1. Know your income and expenses
Credit cards are taking the world on the centre stage, it allows people to spend their future income. This is somehow a very tricky strategy and most of the people got hooked and wasn’t been able to repay the amount spent by a stipulated grace. Interests imposed by the banks are very substantial and will snow ball to the next billing if it is not taken care of. Pay in cash will be a better option.
So, it is very critical to know your limits/income vs your expenses so as not to over-committing your budget flow. Sometimes it is a good idea to track your expenses as the month-end approaches, keeping your budget intact and avoid being overspent.
At the end of the day, you will be more happier with spare cash in your pocket and yet living a much better life. In short, earn regularly, spend wisely!
2. Don’t compete
People tends to get frustrated easily of not getting what they want, often after comparing or trying to compete with others on what they have or enjoying. Such mindset will eventually drag down self-esteem, creating discontentment. And this may result in developing some negative thoughts of getting more money through illegal ways.
On the other hand, a slight competition maybe good to drive people forward, however over competing is not healthy, so do recognize this and make your own evaluation and judgement.
3. Keep an emergency fund
Emergency is unexpected and it usually happens out of nowhere.
My word of advice is to save money wherever possible and cut down on unnecessary expenses. By doing so, you will be able to save for raining days. Saving money doesn’t mean compromising your living style, there are many ways you still can live in style without spending exorbitantly!
You may want to share your view by leaving a comment below!