It doesn’t matter whether you have a huge salary or work part-time, we all seem to live to the very edge of our means. Of course, this tends to be the main reason why people always have money problems and start to get a little hot under the collar every time the end of the month looms. That is why we spent time talking to financial experts and getting their advice on how to become more money-savvy and improve your finances right away.
Realism Is Your Only Hope
The rise of electronic payments has seen more and more people become less comfortable with checking their account balances. It is a trait that seems to be shared by so many people who prefer to bury their head underground than face the reality. But face it you must. As such, we suggest you regularly keep on top of your balances and regularly make a budget to work to. But be realistic with your budget, because this is your anchor. So, make a note of everything you spend over the next two months, and then create a budget – with a breakdown – so that you know how much is spent on things like rent, groceries, bills, travel and everything else.
Do more Shopping Online
The thing with most online stores is that they don’t have physical premises or as many overheads as their high street counterparts. This means they can sell goods for a cheaper price, meaning you can find a better deal on almost anything. However, it is just about buying products online, but also about how to save money online: debit vs. credit cards. You may not realize it, but your choice of debit or credit card can have a huge impact on the amount you end up spending. As such, make sure you look for deals, and coupons, and know the benefits of spending on your different types of plastic.
Luxuries Are Not Necessities
There is a huge difference between things you want and things you need, and it is your job to address where this line is and ensure you stick to it. It is one of the most effective ways for you to become more money savvy and thus save more each month. For example, buying yourself scented Roman candles every month is a luxury. That is the case with a lot of the things we end up buying each month. As such, you should always look at a purchase and decide whether you could survive without it. That doesn’t mean you have to scrimp on everything, but it could mean you stop going out to eat three times a week, or that you play golf a few fewer times a month. All of these things can make a huge difference when added up.
Don’t Make Assumptions
A great rule to follow is, don’t spend it until you have. So many people get in trouble with money because they are betting on their next bonus to be big and thus help them out. But bonuses are rarely guaranteed. So spending something you don’t have the hope of getting it is essentially gambling, and gambling is never a wise idea. As such, only spend what is guaranteed, and that means what is coming in your basic pay packet; your salary. Anything else should be considered extra and should be put into savings, or at least half it should. But, yeah, don’t spend what you don’t have.