1. Visualize your goal. Plans require a goal, and a financial plan is no exception. Be honest with yourself and identify what goal or goals you want to achieve in the future. Such goals may include getting out of debt, investing in a condominium unit, or establishing a retirement fund. Whatever your goal/s is/are, write it down to help you remember it.
2. Have a money notebook or file. If you are the pen-and-paper type of person, buy a nice notebook or journal. If you are high tech and prefer to go paperless, start with a spreadsheet on your computer. These files, whether on paper or electronic form, should contain your budget, a record of actual expenses, a list of your payables, and your payment plan for debts.
3. Write down your budget. Every person desiring to be financially secure should have a working budget which would set down the parameters of one's spending. Based on your income, make provision for savings (at least 10 percent), then allot the rest for your usual expenditure items. Put a spending limit on each expense item. Be guided by your budget throughout the month.
4. List down your expenses-everything, from candy to big-ticket purchases and bills. By listing down your expenditures, you will be able to compare your spending against your budget. If you are overspending, find out the reason and take steps to curb the habit.
5. Have a monthly spending limit. Put a monthly spending limit on your purchases. It should be an amount you can afford, taking into account your other budgeted expenses monthly. If you own a credit card, make sure you don't spend more than you can afford to pay. It is good to have a credit card as you will be able to purchase items even if you don't have the cash on hand as of the moment, but use it wisely.
6. If you are heavily in debt, stop spending. You may do so literally (some have done so) to stop yourself from further burying yourself in debt. Stick to the essentials, and forego luxuries from now, even small things like taking a taxi to work, when there are cheaper means of transportation available.
7. Shop in bulk for items you need regularly. Great bargains may be had at warehouse clubs or discount stores. If the number of items per bulk purchase is too much for your small household, split the purchase with a family member or friend.
8. Prepare for the future. Take out health insurance and life insurance, especially if you are the breadwinner of the family. This will protect your family from financial burden if you get sick or when you pass away.
9. Have a "money buddy." Ask your spouse or best friend to regularly check on your money habits and hold you accountable for your money makeover steps. By having someone check on you, chances are you will be more motivated to meet your goals.
10. Spend less. It's a simple rule that most people ignore. But it really works if you want to be financially secure. Before buying anything-that goes for literally anything, from grocery items to cars-compare prices. Choose the best quality at the lowest cost. Check the Internet or newspaper advertisements for prices of items you are interested to buy. And when you see a promotion, take advantage of it if it will bring you added benefits. Be a smart shopper.
These are only some money makeover tips you can easily do. Start doing them this week; don't delay. We wish you the best!
Source: Inquirer.net
2. Have a money notebook or file. If you are the pen-and-paper type of person, buy a nice notebook or journal. If you are high tech and prefer to go paperless, start with a spreadsheet on your computer. These files, whether on paper or electronic form, should contain your budget, a record of actual expenses, a list of your payables, and your payment plan for debts.
3. Write down your budget. Every person desiring to be financially secure should have a working budget which would set down the parameters of one's spending. Based on your income, make provision for savings (at least 10 percent), then allot the rest for your usual expenditure items. Put a spending limit on each expense item. Be guided by your budget throughout the month.
4. List down your expenses-everything, from candy to big-ticket purchases and bills. By listing down your expenditures, you will be able to compare your spending against your budget. If you are overspending, find out the reason and take steps to curb the habit.
5. Have a monthly spending limit. Put a monthly spending limit on your purchases. It should be an amount you can afford, taking into account your other budgeted expenses monthly. If you own a credit card, make sure you don't spend more than you can afford to pay. It is good to have a credit card as you will be able to purchase items even if you don't have the cash on hand as of the moment, but use it wisely.
6. If you are heavily in debt, stop spending. You may do so literally (some have done so) to stop yourself from further burying yourself in debt. Stick to the essentials, and forego luxuries from now, even small things like taking a taxi to work, when there are cheaper means of transportation available.
7. Shop in bulk for items you need regularly. Great bargains may be had at warehouse clubs or discount stores. If the number of items per bulk purchase is too much for your small household, split the purchase with a family member or friend.
8. Prepare for the future. Take out health insurance and life insurance, especially if you are the breadwinner of the family. This will protect your family from financial burden if you get sick or when you pass away.
9. Have a "money buddy." Ask your spouse or best friend to regularly check on your money habits and hold you accountable for your money makeover steps. By having someone check on you, chances are you will be more motivated to meet your goals.
10. Spend less. It's a simple rule that most people ignore. But it really works if you want to be financially secure. Before buying anything-that goes for literally anything, from grocery items to cars-compare prices. Choose the best quality at the lowest cost. Check the Internet or newspaper advertisements for prices of items you are interested to buy. And when you see a promotion, take advantage of it if it will bring you added benefits. Be a smart shopper.
These are only some money makeover tips you can easily do. Start doing them this week; don't delay. We wish you the best!
Source: Inquirer.net
