Nowadays, it is hard to earn and save money. Other than the economic crisis and the decline of job opportunities, consumer goods also increase value time and again and the meager salary that you get becomes more and more insufficient to provide for your basic necessities. On top of that, you have expenses to attend to and debts to pay every month. Most of the time, you end up spending more than what you make, and this practice leads you to even more financial trouble.
Since your money is born out of hard work and perseverance, you must spend it carefully and in the best way possible. Live within your means. You can do this by incorporating the following pointers in your daily spending. If these practices develop into a routine, the better. You will be surprised with how these small and simple ways can greatly improve your finances.
1. List down your expenses daily. From the smallest purchase to the most expensive item you bought, see to it that you write them down. At the end of the day, when you look at the list, you would realize what purchases were necessary and reasonably priced and what you could refrain from buying next time you shop. You only realize your mistakes once you have committed them, and with this first step, you somehow try to lessen the possibility of doing it again.
2. Put spare coins in a container. There would be no one dollar if there was no penny. If you cannot put savings in a bank, save at home. It is never too late to use piggy banks or money boxes. Your loose change, when collected, will become a fortune later on.
3. Make budgeting a habit. A budget, other than being a healthy financial exercise, helps you limit yourself in terms of spending and making payments. This prevents you from going overboard and spending more than what you can afford.
4. Prefer cash than credit. It is best that you use cash in your transactions, especially when purchasing small items. Credit usage is good as it improves your credit score, but only if you can pay your dues on time. If you know that high interest rates and penalty fees have no room in your financial life at this point, save yourself by using cash. When you know how much you have at hand, you can only spend so much and you prevent yourself from making unnecessary purchases.
5. Seek debt reduction. When you have debts to service, you have to include it in your expenses. And most times, in an effort to keep your credit score satisfactory, you make your monthly payments without taking into account your basic expenses. You then realize that you have insufficient funds to provide for yourself and you end up using credit and incurring new debt. If you want to keep good credit standing, gradually pay off your debts, and have enough for personal consumption, try debt reduction. You can start by calling your creditors and asking for lower interest rates.