5 Ways to Keep a Check On Personal Finances

personal finances

Once you start earning, it is an exciting time in your life, these years are also crucial in terms of your finances. You wish to spend freely on fashion labels and explore the city. But, when you sit down to check up on the finances you regret spending on stuff that you shouldn’t have bought instead, you could have traded-off for more valuable things. Then you ask yourself, “Isn’t there a way to do this better and not regret later?” Since you are young, you can take the necessary steps today to secure your long-term financial health.

It takes a lot of hard work to earn money and you will do good to yourself by working with a plan to avoid the stress and regrets of mismanaging your money. Making plans is an easier way to create your ideal spending schedule. So, sooner you start planning your finances, you will have lesser things to worry about.

How do you really value your spending?

It is seen that spending habits are value based depending on how different spends appeals to you in your life. Example: Ms Shah enjoys spending on movie outings as the big screen appeals to her, whereas Ms Patel thinks it is waste of time and enjoys shopping for latest fashion trends. Life and people are wonderfully complicated, so “Spending money should always be done in a way that enriches you and moves you towards your ideal life”.

Given below are five ways to derive maximum value from your spending

  1. Fix a budget

    I am no planner myself, but sometimes I do fix a budget for a movie or shopping for cute little branded purse or even to buy a phone. Money is a tool that allows us to buy stuff we like. If we keep saving and not spend it, we are not living at all. Allocate a budget for anything and everything. A tiny step of setting up a budget for each spend decision can add so much value to your life in the long run.

  2. Be mindful and adjust

    Suppose you did buy that expensive pair of shoes, but can’t use them often because of shoe bites. Next time don’t buy that expensive shoe, the extra money you save on the shoe can pay up for your phone top-up or salon bill. At the end of the month you can have some extra cash. By obligating to spending less on things that don’t matter and refusing to buy anything that isn’t important to you, you free up money.

  3. Have a clear focus

    Anything you buy should enhance your life and be meaningful after a while, so think before you buy anything or spend your money for. The money spent should not just sit like a bag of waste in the corner of your home. Things which you would not value later shouldn’t be bought, instead you can trade it off by investing which is going to grow in value. This accumulated money can work wonders.

  4. Reverse spend

    A mechanism where you save first and spend later. It is one of the most guilt-free spending trick. If you have made plans for your life goals (buy a house, wedding, medical emergencies, etc..), then you can allocate a portion of your income to these saving needs as soon as you get a paycheck. The remaining amount is for spending as the way you like it.

  5. Start financial planning of your goals early

    Financial planning, is the core for your success story. Successful financial planning is the result of conscious and thoughtful decisions repeatedly. The sooner you make these simple commitments, the greater are your chances to enjoy the fruits of financial success.

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