15th and 30th. These are the most awaited days of the month for almost all employees. These are the magic numbers. Why? Because the 15th and the 30th day of the month are salary days. Ever wonder why you can’t save money out of your monthly salary? It’s because salaries, when received, are automatically distributed to utility bills like electric, water, telephone, and cable connection while some will go to tuition fees, credit card dues, loans, and another loan.
Yes, our hard-earned cash only go to paying those bills and not a single cent was left for us to save. If you’ve been interested in this article from the very beginning, it’s either you’re one of the many employees who receive huge amount of paychecks (but cannot save some of those money) and want to learn how or you want to know if you can further improve your strategy in saving.
Well, regardless if you’re already a saver or want to become a saver, here are some tips that will help you manage your finances well.
Take note of all your expenses. In this case, you can keep track of your spending. I once have a colleague who has this notebook which she updates regularly. Curious to know why she’s so old school, I asked her what the notebook is for and then she showed me what’s written on it. It was a list of all her expenses! From utility bills to jeepney fare – all listed up to the last cent. She explained to me that writing down all her expenses helped her monitor where her salaries go. By listing down all your spending, you can review what you’ve purchased or paid. Then, you can cut a little of the nonsense and reallocate to some savings account.
Be a smart buyer. People tend to go gaga over items on sale and become impulsive buyers when they see the red tags. Smart buying means getting a great deal on a product within your spending limits. You don’t need to buy an item because it’s on sale. Putting items on red tag is an effective strategy used by shopping malls and other merchandizers to attract you to buy their products. You just have to ask yourself first some questions like do you really need that item or you just want it to become “in” in your group? Or do you want to buy that thing because you have something on your mind that it will be of use in the near future or just because it’s on sale. Sometimes buying things on discounts or sale can be translated to a financial loss because it only ends up in your storage box since you can’t find something to use it for.
Prepare a spending plan. Learn to Prioritize. Admit it, not all of us earn a lot. So we have to prioritize things when spending our money. Before you buy, make a list of what you need to buy and know how much you can afford to spend or if it fits in your budget. It will also cut additional costs if you compare the prices, warranties, and freebies if there are any, of products from different manufacturers. Moreover, it will save you from multiple shopping trips if you have your spending plan prepared. Also, organize your list of needs versus wants. It will also come in handy.
Stay away from DEBT. As much as possible, stay away from it. But if it is really needed and you have no choice but to get a loan or use your credit card to make a big purchase, compute first how much would be added to your monthly expenses if the amortization will be included, then update your spending plan.
Live simple. Living simple means buying only the necessary or cooking your lunch to work or lessening your dine outs on restaurants. You can indulge in some vacations, new gadget, and dinner or movie date with friends occasionally to reward yourself. But don’t do this every week or every payday.
There are a lot of ways to save money. But, these tips will only be useful if you have the courage and the will to follow these simple reminders.
So brace yourself because saving money is a lot harder than earning them!
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