How to spend your money wisely??
Posted on: 02/Sep/2015 11:12:55 AM
Being able to spend within your means is an art of a its own. Here are some ways you can keep your expenses in check. First make sure you measure everything. What are your earnings? Is it only your salary? Or do you have other sources such as rent or interest? This is the first step. Learn how much you earn (after taxes and deductions) per month and per year.
The next step is to measure how much you spend. List out your expenses. Don`t forget to add your rent, your eating out expenses and your shopping expenses. This exercise should help you understand your spending trends - how much you spend, for what and why.
The above two steps should get your priorities in order. The difficult part is to measure expenditure. It is not necessary that additional expenditure (such as shopping or eating out) remain the same every month. Do how do you measure that? One ways to keep an excel spreadsheet for this purpose. Create one page that lists out your earnings and another to track your expenses. Your expense page should show where you spend, when you spend, how much you spend, what you spent on and the type of expenditure (need vs want). Don’t forget to log in your expenses as soon as you make them - you may forget. Also, remember that expenditure includes both cash and credit card payments.
Now, you should be able to determine if your expenses exceed your earnings.
