It’s how you save”
There are two class of people. The first one is penny pinchers. They know the art of saving money very well. It comes naturally to them. The second class of people is spenders or spendthrifts. They end up exhausting their full paycheck at the end of every month.
Now, who is better between the two?
1 Penny pinchers are less likely to get into debt problems because of the following reasons:
- They don’t waste money
- They have savings or an emergency fund
- They spend less than what they make
2 Spenders are more likely to swim in the debt sea since:
- They spend more than what they make
- They have more debits than credits
- They don’t have any savings
So, one point is clear. If you want to avoid debt problems, then it’s crucial to save money. And, if you wish to save money, then it’s imperative to stick to a budget.
Usually, penny pinchers don’t face any problem. They can easily stick to a budget. But, we can’t say the same thing about spenders. First of all, they don’t have a budget. And even if they have one, they find it extremely difficult to follow one.
If you belong to the second class of people, then here are a few tricks you can use to stick to a budget.
1 Stop spending on things you don’t need:
Be honest about your useless expenses. I’m not asking you to starve and save money. This is not practically possible. But, what you can do is give up your cable subscription when you watch only Netflix. Many bloggers suggest carrying lunch to work. If you can’t survive without tasty sandwiches and a refreshing drink at lunch, then there is no need to carry brown bag. Buy your lunch but at least surrender your cable subscription.
2 Download and use a budgeting app:
We are gradually moving towards a digital world with the rampant usage of apps in smartphones. So, why not install a budgeting app? It will help you to track your money easily. You can note down your recent transactions and check your available funds with the budgeting app.
Obviously, you can maintain a book and write down your expenses there. But, going digital is better since you can change the figures without leaving a paper full of scratches.
Every month is different. There will be different scenarios and so your expenses are bound to change. Make a fresh budget plan every month. For instance, you need to create a separate category for Valentine’s Day celebration expenses in February. You can’t skip it. But, what you can do is reduce your expenses in some other category in that month.
3 Think “is it worth it?”:
My cousin brother is a big online shopper. He keeps on buying several things every month. But the interesting part is that he doesn’t use most of the items. I have asked him to stop buying useless items. But, he just doesn’t care.
Fortunately, he earns a lot. So, he avoids getting into a major problem.
But, is it healthy? Never.
The best way to stop buying useless items is to wait for 48 hours. Add all the items to “shopping cart” and wait for 48 hours. You’ll get enough time to think if the products are worth it. Ask yourself, “is it worth it?” If you still crave for a product after 48 hours, then go ahead and buy it. If you feel that the product is not that good, then just change your mind.
What else you can do
If you fail to save money in spite of your best efforts, then get a side job. A side job offers 3 benefits - (a) you would earn extra money (b) you would get less time to visit malls and spend money you’ll gain more work experience. Even if you don’t have savings, you can use the extra money to pay off your debts.
There is yet another option you can try. But, this option is not for all. The option is to visit a psychologist when you have a specific addiction that is preventing you from being financially responsible.
A word of wisdom
You’re a spender. So, you’ll always find it hard to save money. Your hands will always itch to swipe credit or debit cards. Now, the choice is yours. Do you want to have no savings in your bank account and get into debt problems in emergencies? Or, do you want to have some money in your hand to tackle any tricky situation like a pro? Your choice will determine your financial future. It won’t hurt to stick to a budget and have an emergency fund. But, if you continue to live like a spendthrift, then there are dark days ahead.