Managing your money the right way


What exactly is the right way to save money? Could there ever be a wrong way to save? If you’re only saving 5% of your income, then it’s wrong.  If you’re saving, but retract the money you’ve put in after a month because you “need” it, then it’s wrong. Changing bad habits are never easy, but the only way to change is the substitute that habit with a good one.

Take a good look at what is making you spend money on insignificant things you don’t need. Then challenge yourself to change for the better. If you have expensive taste, but your salary is crawling through the dessert to make it until the next pay day then you have a problem.

There are ways to manage this problem:

Seek assistance

Most of our problems stems from our days as children. If you had a weak influence on saving money, then it will most likely grow into you adolescence and drift over into adulthood. But you can change this if you seek financial advice from professionals.  The information is on your very finger tips all you need to do is Google financial advisors in your area. They will teach you tips and tricks on the best to save money and keep to your budget.  It’s the job of the financial advisor to guide you, and you can get advice for free from Old Mutual if you’re going to invest in them.

Save for those in case moments

Make a habit of saving for those “in case this happens” moments in life. You will then at least be in the habit of saving and curb yourself because you never know when those unexpected moments could occur. Anything could happen, you could get retrenched or sudden medial or legal expenses may pop up.

Set up an automatic transfer into a savings account that you don’t touch until you are in desperate need of the funds. The monthly deduction will become such a normal occurrence that you won’t even notice or feel those deductions anymore. Paying off credit cards can be an easy task if you set up debit order collection to automatically pay off each store.

Stop spoiling yourself

Do you really deserve that take out meal? Do you really deserve those designer jeans? Maybe you work hard and you do need a reward, but will your pocket thank you? Instead of spending money, rather do something with friends don’t won’t cost you too much. Sending time with people who understand your financial decision is much more likely to get you clued up about your finances. They won’t make you feel compelled to spend money.

 

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