Know How To Save Your CA$H
Managing money has been a problem for me for as long as I can remember. My allowances were always limited, and there were so many things I had to have. Even when I had a job and made some extra money, there were even more things I had to buy. So I've been interested in saving/managing money as well as controlling my spendings. I've recently quit my job, and the same problem seems to be arising again; I have little control of how much money I spend every day.
So what's the underlying problem for most people when it comes to managing money? First thing is even though they know they want to start saving, most people are reluctant to start immediately. They think it makes them look too frugal to chase after a few dollars.
"This is not about living a miserable life. It is about how to spend and shop sensibly. It is about cutting out waste. It is about looking after the pennies to look after the pounds."
There are certain things that we must buy, and other stuff that we just want. The important thing is to know how to shop wisely when purchsing the necessary stuff. Look in the mail again to see if anything is on sale at a nearby grocery or drug store. Look for coupons and use them wisely. Most people tend to ignore the little savings but after a certain amount of time you'll congratulate yourself on how much money you have already saved.
Another method I found pretty helpful is tracking the daily expenses. At the end of the day, I collect all the receipts I received during the day and write down how much I spent on what item. Most of the time I realize that I have spent more than I needed to, distinguish which items were necessary (a quick lunch at McDonald's or a friend's birthday gift) and which was unnecessary (that $5 cup of sundae, or an extra pair of socks I found cute).
"Tracking where you have spent your money may not qualify as an interesting way to spend time, but it is important nonetheless. It will provide you an unambiguous picture of your cash flows; this will put you in better control of your finances. More importantly, it will provide you an insight into your spending habits"
I understand this is NOT a fun process but it is a healthy habit since tracking your expenses gives you an overview of where you have spent your money. At one point I had trouble keeping track of my money and ended up in debt. This method is especially helpful because you can't overlook how much money you spend daily and how much you have left.
Most people know that they want to save some extra cash for themselves, but they are either reluctant to get into action right away or don't know where to start. Realize that the more money you save on little things, the bigger your reward will be. A reward might be something that you know you've wanted for a long time whether it's a new makeup or a cute pair of boots. Know when to spend and when to save.