People often forget the difference between “need” and “want” though sometimes they are co-existing. Having this mindset will lead you to frustration and feeling of regret. If you are one of them, here are the tips on how to manage your money:
1. Distinguish if it’s a need or want.
This is the very first thing to remember because it would be your foundation. A need is a necessity like food, water, clothes to wear that you will need for everyday life. A “want” is something you like but not necessarily like an extra shirt, jewelry, vehicle (if not needed for transportation) and so on.
2. Set aside your budget monthly.
Set a portion for food, bills (rent, internet, electricity) and the rest for savings. If you really buy a “want” you can get it in your savings but make sure it’s just 5-10 percent, nothing more.
3. Learn to abstain. Abstaining is controlling yourself to be impulsive in your penny. It would take practice. There’s a saying that if you want an action to be a lifestyle, continue to do it in 21 days.
4. Uninstall tempting-apps. We live now in a digital world where everything is one click away. Online shopping is a trend nowadays, no need to go outside, you just need a mobile phone. Uninstalling these apps will be of great help. You can leave necessary shopping apps instead like food delivery apps etc.
5. Divide and organize your money regularly. If you have a side hustle, part-time job it is necessary to divide it and not save it in one account altogether.
6. If you have a husband/wife, collaborate. If you have a partner, it would be good if you collaborate in both accounts that you may come to one decision.
Tags: money management, impulsive buying, financial planning, personal finance, budgeting, savings, investment, lifethinkler
Author: B. Carlos
