BE SMART: Use your money wisely

I will start off with this because this will be the hardest thing to do. Anyone with a little or a lot of extra money would definitely have a great time splurging once in a while. Admit it you do too. It’s a simple fact that we human beings want more and are willing to go through a lot just to get what we want. However, your goal is not to get more but to have less; less in the sense that you remove the things that are unnecessary to daily life.

Step One: Budget or plan out your spending. This is a very basic tip, budgeting will make your life so much easier and simpler because you know what you need to buy and how much you have to spend for it. Every time you go to the grocery, make lists! Every time you go out with friends or on a date set a limit on how much you can spend. Bring only the amount you set and a little bit of extra in case of emergencies. Speaking from personal experience ever since I started budgeting my money I found life easier and simpler in the way that I don’t get stressed on why I keep losing money, why I don’t have enough to do the things I need, etc.

Step Two: Schedule your spending. This step is pretty much the same as the first but this time you’re going to list down the dates when you really have to spend. Of course there are times when you can’t predict when you have to spend but most of the necessary things in your life can be foreseen. For example, take note of when you have to do grocery shopping. Having a schedule for doing groceries will have a big impact in the long run. You will always have enough food and other necessities over a certain period of time and by the time you run out you’re prepared to replenish your supplies.

Another thing to take note of is when to pay your bills. Bills bills bills nobody likes paying bills! But you have no choice but to pay bills. To help reduce the stress you get from your monthly dues it is best to prepare ahead of time. Estimate how much you have to pay, when you have to pay and once you’ve done that, put that money aside so when the time comes you can pay your bills minus the stress.

Step Three: Save your money for important things. A friend once told me, the secret to saving is knowing how much you want to save. It sounds simple yes? Well it’s not that simple really. Normally, people compute for their savings by deducting their expenses from their earnings or profits [Earnings – Expenses = Savings]. However the secret to saving is deducting your savings from you earnings [Earnings – Savings = expenses]. By knowing how much you want to put aside for your savings whatever amount is left after deducting will be the limit on how your expenses should be. Again, it sounds simple doesn’t it? But in reality it takes a lot of discipline to be able to accomplish this.

Step Four: Find something to do with your extra money. This step is very much related to the third step. When you save money make sure that it has a purpose. You can save for many different things such as your future house, future family, your children’s college fund, vacations, emergencies and many more. Saving extra money for no reason is useless. You’ll end up spending it on unnecessary things in the end. If you really can’t think of a purpose for it in your life then put it to good use somehow.

One way is by investing it. You should treat extra money as a luxury and you should use it properly. Another way to use it is by donating it to charities and foundations. If you can’t find use for all that extra money then why not just use it for the good of other people. Plus, there’s an added bonus of making you feel better inside!

Step Five: Don’t be cheap. I did just tell you to budget, to plan and to save but that don’t mean that you should go cheap whenever you really do have to spend. Why is that? First of all, buying cheap goods will only hurt your wallet in the long run. Cheap goods deteriorate and break down faster than quality goods so you’ll end up buying again and again as opposed to buying a quality good and keeping it for a long time.

Another effect of this is it adds more stress to your life. Cheap goods malfunction a lot and you and I both know that no one likes it when things don’t work the way they are supposed to. So the next time you buy something you need keep it simple but remember don’t be cheap!

What about you? What are the simple tips you do to spend money wisely? Drop a comment and lets help each other. 🙂 ❤

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