Wondering how can manage your expenses you pull your shoe strings a bit harder to save more to get out of debt with the least damage, while at the same time doing it so smoothly? Managing your finances shouldn’t be about turning your life style upside down. You can simply manage your finances by following simple steps that can make your life easier and cheaper. Here are six steps of those that you can implement today to start managing your expenses, not the other way around:
Manage Your Expenses: Start Saving Money Today
You remember when you decided to go on a diet and you keep telling yourself that you will start next week? Remember what usually happens afterward? Yup! That is it. You ended up never starting this diet and gaining additional weight. Well, it is the same thing when it comes to managing your expenses. We are used to spending more than we have —after all that what got us in this trouble. So start NOW, not next week, nor next month. And remember: every penny saved is a penny earned, and every penny counts.
Step 2: When You Can Borrow or Rent; Don’t Buy
To prove that you don’t need to give up on the fun stuff you enjoy to save money; consider this. You do not need to buy the latest book by your favorite writer; go get a library card at your neighborhood’s library and borrow the book. Most likely you will only read it once. What about movies? You can always stream it from Netflix or icflix or a similar service. Keep looking for alternatives to buying. Sometimes you don’t really need to buy everything you crave. You can always resort to borrowing, renting, or even sharing it.
Step 3: Go For High Down-payments and Low Monthly-installments
Look at it this way, you will have hard time getting hold of the money once and you rest afterwards. If you scale the high down-payments to worry about getting the money for the installment ready in time; a high down-payment is a small price to pay for a good night sleep and less monthly expenses. It’s a steep price, but to manage your expenses you have to take some hard decisions.
Step 4: Have Good Insurance Coverage
You never know when you will need a big sum of money immediately. When it comes to emergencies and worst case scenarios, you are better off with a good backup plan. So as my boss always says, you need to always have a plan B. So cover your back by a good insurance coverage, as you can never know when it would come in handy.
Step 5: Have A Good Book On Finance Management
There is nothing better than “Professional” help, and knowledge is the key to professionalism. If you want to get a head-start in managing your finances, you need to hit your district’s library and borrow a good book about finance management (remember what we said? If you can borrow it, no need to buy it ). Nothing beats a professional advice and you need it. With the wealth of information available on the internet, you don’t have to go to the library.
Step 6: Save A Dollar A Day and It Will Snowball Into A Million Someday
If you are a big Disney movies fan like me; then I encourage you to see the good old movie “Up” (if you haven’t already). The couples in the movie had a jar in their living room where they saved all the change money they had on daily basis. Get yourself a jar and place a coin in it each day. You’ll be surprised how much you would end up saving that way. You will discover that on the short run a dollar is not too much to cut off your daily expenses, but it makes good saving money on the long term.
And when you start to manage your expenses wisely, you can then start to invest your money savings and enjoy life.
Read also: Tips for Good, Sound Investment
Contributed by Noha El Ashmawy, a freelance writer.