By: Ana Margarita Olar| Executivechronicles.com
Are you one of the many employees who do not have a single centavo in their bank account? Here are some simple tips for you to start saving, investing, and enjoying your money.
SAVE FIRST
It may sounds easy but it is really hard to do. If you don’t save anything and go on a shopping spree every payday, then saving money is really a painstaking task for you. But if you are currently saving some money, you can challenge yourself to save some more.
Save gradually– saving is like taking a new medicine or withdrawing from your addiction. If you do it drastically chances are you will fail because you’ll think that you are depriving yourself of the luxury. So start by saving 5% of your salary each month. And once you get used to it, you can set a saving goal such as 10% or 15% of your salary each month.
Delay shopping– most people are allergic to money. Why? Because once they receive their salary or bonuses, their hands itch to the point that they spend it all away before stopping. So reverse the pattern, don’t shop once you get your salary, delay for 3 to 5 days when you no longer feel overwhelmed by your salary. You’ll feel that strange feeling you’ve never felt before: being able to discern if you really need that new clothes, new shoes, and new gadget before buying it.
Track expenses-List your everyday expenses and evaluate which of them consumes most from your salary. Normally it’s the food items but it’s a part of our basic family needs. We can cut off on vices such as cigarettes and alcohol, soda, and junk foods. If transportation consumes a lot from your salary, then you can try to find a cheaper way of getting to work, or consider if having a motorcycle or a bicycle is much cheaper than commuting.
Stay out of a bad debt-If you are going to get a loan to buy a car, buy a gadget or to spend for your everyday expenses, then you are on a bad debt because the things that you are spending for loses their value over time. But if you are borrowing money for to expand your business, this is a good debt since your business puts back the money in your pocket.
INVEST
The spending spree is like an addiction, you’ll easily fall back to it if you don’t replace that hobby. So a smart way to replace spending is investing. But be careful not to get into “GET RICH QUICK SCHEME”. As Bo Sanchez always says, build your wealth slowly.
If you don’t have the idea about investing, open a regular savings account first and then teach yourself how to invest in the stock market. Then, while on the stock market you can unleash your spending spree without losing your money, as you’ll be buying shares of big shopping malls that grow over time instead of buying products from them that diminishes in value over time.
LIVE AND ENJOY ON 70% OF YOUR SALARY.
Hey! It’s possible! You can enjoy life to the fullest without emptying your pocket to the full extent. Instead of shopping, go to a beach or a local place with majestic scenery to relax and relieve stress. Avoid stress eating.
Eat local fruits to curb your cravings for expensive foods. Keep in mind that being drunk in a bar is not a fun way to celebrate your promotion. This doesn’t mean that you must not enjoy the luxury. You can plan a group getaway with friends where you can visit the place you want at a minimum cost. Lastly, expect more blessings but spend less.
If you have not still made up your mind on being in charge of your finances, go back to the time when you are financially struggling, or when you’ve had an emergency and you have to beg for some money. Would you want to go back to that situation? If not, then you must condition yourself to save and investing before spending.
