Key To Manage Finances
When you step out in the real world, you will learn that there were a lot of things that you weren’t taught at school or college, managing finances is one of those things. Managing personal finances might sound like a really arduous task, but eventually all of us learn it. It involves only a tad bit of much dreaded mathematics.
If you keep the following things in mind it will perhaps help you be better financially:
Have a monthly budget:
A monthly budget will enable you to spend your money wisely. You have to be sure; your expenditure isn’t more than your monthly income. Take control of your finances. Even small savings and cutting down on daily expenditures can be of great help. Just because all your friends are splurging on vacationing, doesn’t mean you have to do that as well. You can probably save and later use the money for something better, a car perhaps.
Know where you are spending your money:
Make sure you keep a track of where your money is going. Do not splurge unnecessarily on things that won’t be of any use to you in future. Spending 20k on a dinner when you are earning 25k isn’t a wise thing to do. You will end up having no savings and worse you will be left with just 5k to spend for rest of the 29 days of the month.
Have an emergency fund/savings:
You should always have some money stacked up in your bank account for the times you might need it. Having emergency savings will keep you out of trouble financially. This should be a non-negotiable saving you should make every month.
Loans are something we want to get rid of immediately. Start paying off these loans as soon as possible. The more quickly you pay off these loans the better it is. Once you have no loans to pay off, you can have better savings and can spend more on yourself. You can probably buy the black cocktail dress for yourself.
Minimize the costs:
Think of ways to minimizing costs of your expenses. If you are going for a trip, choose a destination that is probably closer and cheaper. Instead of Malaysia or Singapore go to Goa, it will be the same amount of fun. You can go for expensive vacations when you have a decent saving. Or instead of buying a Kenneth Cole watch, opt for a cheaper brand some of them are equally good.
Remember all you need to do to have a better financial future is save smartly. As women you cannot simply sit down and depend on others to plan your finances. Take control of your financial security and stability.