Saving you money doesn’t have to be hard, in fact, with some basic budgeting you can really save a lot more than you think. Too often people just spend cash without thinking. $10 here, $15 there, without thinking about their monthly budget.
Is this a good strategy for saving? Well, if you have a lot of money then this is fine and won’t hurt you. However, if money is an issue and you find yourself counting the pennies, then budgeting is what you need.
A budget doesn’t need to be complicated, a simple budget is all you need. Write down your monthly income after tax. This is how much money you have to spend. Now write down everything you need to pay, e.g. food, rent, bills. Now what do you have left? Hopefully a little bit. But the reality is you shouldn’t be spending more than this left-over money otherwise you a spending money you don’t have. This is where credit cards and loans come in and this is where personal finance gets more complicated. If you can avoid spending more money than you’re earning you will find personal finance a lot easier to cope with. If you have no option but to spend more one particular month, try to save more the following month.
You can’t compare yourself to other people. Maybe your colleague drives an expensive car. You can’t think that because he bought it you can now suddenly afford it. Maybe his family helped finance it or maybe he has credit card bills stacking up. You will be better off my focusing on yourself.
Once you’ve got this understand down, then you can start to enjoy your money more. You know that by being frugal for a few weeks means you can genuinely afford to treat yourself without going into the red. Spending money you have means you’ll be able to enjoy it more. If you think a loan or credit card is the only option then consult a professional and make sure you understand all the terms and conditions.