Have you ever been in a situation where you asked yourself “Where does my money go?”, there are many people that earn a very good salary but in most cases, they can’t tell where all of it goes.
This is the same reason most people find it hard to save part of their salary is because their expenses are huge and therefore leaves them with nearly nothing. As a person who wants to improve on the way you manage your money, the first thing you may need to examine is your expenses because they are the reason you find yourself with no money even when you earn a good pay every month.
Recently, I shared an article about the 20:30:50 personal money management rule and I got a lot of questions about saving. I thought I would share these saving tips that have helped in remaining in control of my financial goals.
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1. Save first, spend later. Find a saving scheme that doesn’t give you easy access to your money. You may sign up for a direct debit with your bank to your preferred saving scheme.
2. Budget for whatever remains after saving, sit down and plan for that little you have. I know budgeting is not friendly to many but try it out, it might as simple as noting down in a notebook or Excel your monthly and discretionary expenses and compare these with your monthly incomes.
3. Live within your means. If it is an apartment, renting one that is more than 15% or less of your monthly income can be good option so that that savings you make can be used to save for your personal house.
4. Buy only when you must. We live in a crowded market where everyone is asking you to buy their products, buy only what you need not want. Don’t buy things to impress others.
5. Learn to bargain where you can. Don’t be ashamed to haggle to ask for a price reduction even if it is 0.5%. Alternatively try looking out for alternative sellers that might be selling the same product at a reduced price.
6. Avoid carrying money that you don’t plan to use in your wallet, this will help you reduce the temptation for impulse buying.
7. Learn to buy things in bulk at whole sale price and attract discounts.
8. Protect your assets selfishly. Don’t lend out your car with a full tank for free, supporting others financially is okay but should be within your means and have a planned budget for it.
9. Look for cheaper means, sometimes instead of spending a lot from eating out, you may choose to cook and even carry food to work sometimes
10. Lastly start a side income project to boost your income. This can take care of any of your unplanned expenses instead of putting pressure on your little salary.
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Remember;
“That man is richest whose pleasures are cheapest.” Henry David Thoreau
Coach Samuel Ibanda,
Did you find value in this article? If so, I would love to connect with you, please feel free to reach out to the contacts below:
WhatsApp: +256703803255
Email: coachsamuel@samuelibanda.com
