How To Manage Money Wisely

by James on March 1, 2016 · 0 comments

business-962316_640Expenses are greatly increasing by the day, while people’s salary stays the same. It is not easy to fund you and your family expenses in the modern lifestyle, where everyone wishes to afford all the luxury, and want to stay with full comfort. It is important to manage money wisely in today’s hectic life for a better future, and a better lifestyle.

Make a Budget

It is important to create a monthly budget, and spend according to it, while saving some amount from our income. An individual should track their spending as well as income to get an accurate situation of their financial situation. You should save all the receipts, or at least write down about all your purchases and expenses in a notebook. One should review all their bills each month, and add those to their expenses in the budget.

  • You can organize all your purchases by category, for eg. Clothing, entertainment, food etc. Categories on which the highest amount is spend are a good target for saving money in.
  • Once you have tracked all your purchases, you can create a weekly or monthly limit for each o the category. Also, make sure that the total budget is not greater than your income for that period, and so that enough left over money is there for savings.

Plan your purchases

Another important thing to do while managing money is that you should always plan your purchases in advance. Making decisions on the moment can ruin your planning and disturb your expenditures. Write down things you wish to purchase while you are calm at home.

  • You should make a preliminary trip to the shop before you go on the real shopping trip. Note down all the prices of all the alternatives available at the store or any other store. Return to home without purchasing anything, and decide out which products you will be buying on your second real shopping trip. The more focused you are while at this preliminary trip, the less time you will be spending in the store the next time, while also spending less.
  • If you wish to treat each of your purchase as an important decision, you will make less casual decisions and more better decisions.
  • You should not accept free samples or try something for fun. Even if one does not plan on purchasing it, the experience or sample can convince one’s mind to make the decision to purchase it.

No Impulse Purchases

While planning your purchases in advance is a great idea, purchasing something on the spur of a moment is not. You can follow the following tips to make sure that you do not make wrong shopping decisions:

  • Do not browse shops or store windows just for fun. If you are only purchasing something because you find shopping fun, you will most likely end up spending too much money on stuff, which is of no use to you.
  • Do not make decisions when your judgment is impaired by substances like Alcohol, any other drugs, or from the lack of sleep. These conditions can greatly harm your ability to make decisions. Shopping while you are hungry or are listening to loud music can also be a bad idea, if you do not stick to your pre-planned shopping list.

Shop Alone

You should always try to shop alone. Friends, children, who love to shop, or even one friend can greatly influence you to spend some extra cash.

  • Try not to take any advice from the store employees. If you need a question to be answered, politely just listen to their response, but ignore any of the advices they give you on your purchasing decisions. If they stick to you, you can leave the store, and return to it later to make your decision. It is important to stick to your shopping list at these moments.

Pay with Cash

Always pay in full with cash. Both credit as well as debit cards can increase your spending expenditure for various reasons. The biggest reason is that because you have more money than you would normally have in hand, and there is no visible money, thus making it not register as a real purchase. Similarly, running a tab or using delayed payment schemes makes it hard to realize how much you really spent.

  • Do not bring more cash than what you actually need. If you do not have any extra money, you will not be able to spend it. You should try to withdraw a week budget from the ATM, and stick to this method.

By following these tips you can effectively save some money. For more information as to how to manage money better, you can see the articles available on https://writemyessays.com.



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