You must gain control over your money or the lack of it will forever control you. -Dave Ramsey
Just the other day I challenged a friend of mine about knowing her finances. I asked her if she knew the 16- bank card numbers, how much she had spent in the week and her bank balance. She was was truthfully to say “I don’t know but my card ends with a 7, my bank balance uhmm, all I know is that I have not overdrawn my account.” With this said, I knew I needed to talk about this issue of managing my/ your/ her finances to the dot.
I have always tried to keep in tabs with my finances and I have learned how to “save without feeling that pinch, here are some of my tips on how to start saving
- Treat your savings as expenditure
You know that moment you go to buy that body-con dress/ perfume/ or your grocery? Yes you should treat your savings as an expenditure. Each month I make sure I write down that amount of money as a bill. I know I have to pay it into my savings accounts and it is mandatory. If you feel tempted not to do so, you can organise with your bank for direct-debit transactions so that the bank deducts and transfers that amount of money from your current account into your savings on your behalf every month.
2. Start small.
If you want to save, you have to start small. Good habits are hard to pick up but if you start small you can grow the habit and with no time you will find it so easy to save. You could start with a piggy bank, I have tested it and it works.
3. Jot down
Have a monthly budget and write down your expected income, expected expenditures (such as rent, phone bill, grocery, gym subscription fee). Keep your receipts too for reference. This will help you estimate how much you spend in a month and help you plan accordingly. You can invest in a budget planner, use an excel spread sheet and also a mere notepad to do this.
4. Save with a goal.
I remember the day I got my first pay check, I was very excited because I had planned on how to use my monies. I wrote down what I needed to give my new empty apartment a facelift. This was the first time I took saving seriously and in less than six months, I had filled the empty apartment with what I needed for comfort.
5. You can still save despite the size of your pay check.
Being a student, I have learned to live in my means. As much as I would want to save 80% of my stipend, I can not because the cost of living is so high and again I need to live a comfortable life. This has taught me to prioritise my monies and save the little can afford to. Even if you start with saving $20 dollars a month, in 5months you will have $100, so give it a go.
6. Plan and plan
Quit shopping on impulse and plan ahead before you fill your online shopping basket. I recall while in the U.K., I bought cloths not because I needed them but because the model looked good in them. After a year of my MSc., I did not have enough space to carry all that I had bought home. To date I still have pieces I have never worn. This experience taught me how to plan. I now purpose to shop on plan.
I wish you a fruitful February and keep saving.
Thanks for stopping by,
Love and love