Be it education, travelling, shopping or maintaining social lives, people spend more than they make. An increasing number of health experts believe that stress, especially financial stress directly affects people’s health and well-being. As a result, it’s no surprise that spending less and saving more is touted popular resolution this year.
Since 2018 is about to end, here are a four ways that will help you get on track financially:
Creating a budget. It’s important to keep a track of one’s cash flow, which means how much money coming in and going out. If you don’t have a budget, so it’s time to sit down and create a budget and work according to it. Some expenses are constant such as utility bills, groceries and conveyances charges, but there are unforeseen expenses such as wedding gifts or travelling. It is also possible to monitor your monthly and annual spending with the help of several free budgeting apps such as Hysab Kytab: Budgeting Expense and Saving Tracker as well as Moneypad (which can be downloaded on Android or iOS). This will make sure your money goes where you need it, instead of trickling away when you aren’t paying attention.
Shopping frenzy. Overspending is the worst enemy of your monthly budget and savings. The ongoing sale festivals are excellent distracters on a bad day, but these will leave a huge and permanent hole in your pocket. Impulsive shopping will buy you happiness for a limited time, but will deplete you of the most essential resource that can indeed help you on a rainy day. It’s also important to establish a difference between needs and wants during shopping.
Cutting down on eating out. If you are trying to save, dining out every weekend or twice a week will leave you with a zero balance in your account. So from now on, try to dine out just once a month or prepare a lavish meal for your friends and family at home, this is cost-effective and a healthier option. Another way to dine out economically is keep a track of all those eateries that offer family-size and mid-night deals.
Planning for a rainy day. Medical emergencies, pricey expenditure and inflated utility bills can come at any time in life. After budgeting the daily expenses, keep a certain amount aside for a rainy day. If you have only one source of income, this is the time to make your passion or hobby into a profit. This will help you improve your income but also expand your emergency fund.