Financial Lesson for you During this Post Pandemic period
Since the pandemic has left a serious strike on families and individuals, reducing the rate of income of a lot of people, trying to manage money has become a serious issue as a lot of people struggle with cutting down on their usual life expenses. Living from pay check to pay check is a bad habit that a lot of people have also been trying to stop, this post is going to highlight necessary ways to curb the act of excessive spending and cut down on cost.
Cultivate the attitude of monthly budget.
Monthly budget is not convenient for a lot of people probably because they consider it difficult to do but budgeting your monthly expense is easy, all it takes is a sheet of paper and a pen, divide the sheet of paper into equal portions, designate one portion for the incoming cash while the other part will contain the things you want to use the money for, let that sheet of paper be your friend at that time, carefully plan the things you want to use the money for like transportation, gift, feeding, subscription, saving plan, investment and every other thing, not forgetting to set some money aside for miscellaneous. At the end of the day, the total outflow of money should be equal to the total money coming in.
Re-visit your budget all the time.
Setting budget is sometimes not a big deal for some set of humans but keeping to that budget is what proves difficult all the time, after being paid your salary there are so many attractive and luxurious items that will present themselves but going back to that budget to see if it is something you can afford without going out of the budget before buying it will help you in sticking to the budget. Instead of going for that holiday immediately, begin to save up for it if it is beyond your budget, you do not need to cancel other things you want to do just to satisfy your current urge of going on the holiday.
Take care of little expenses.
Those little expenses that we take for granted are the ones who take all our money, keep track of those little spending’s that appear insignificant, they are the ones that eventually mount up to become something huge.
Don’t take up new debts.
It is a terrible financial move to take up new debts all the time, if you have pending ones make a list on how you want to get them cleared and do not take on new ones while you are on it. Taking up new debts all the time will continue to wreck your finance.
Create an emergency fund.
An emergency fund is highly necessary because no one has an idea on what will happen the following minute, an emergency fund will save us from disrupting our budgeted expenses. I am not writing this because I have gotten to the climax of my finance but because I am also learning and I hope that we all learn together.
