1) Know your budget
This is the first thing will come across my mind. This is not related to your financial problem.
And it is doesn’t matter you are rich or poor. Most of the time, people are fear of it when talking about “budget”. They are concluding as ‘poor’ action that you can’t afford to pay for what you want, but you still want it. This is wrong. Whenever you set a budget, it will help you save more, and reduce a lot of unnecessary cost. Within the budget set, you will only purchase the things that you are really really needed. Here is the example. Set a budget when you moving house. You need to buy furniture for your new house. With a budget, you may cut a lot of cost. New wardrobe, new cabinet, new bed is not a must. You may just install new sofa and some decoration it will look good. And the cost that you safe for new cabinet, new bed, new wardrobe, you may use on renovation. Is the same too for woman who like to shopping, set a budget for the day to shopping. If not, you may found out your debt is increasing all over the months.
2) Clearly understand your DEMANDS and NEEDS
DEMANDS : is describes as a consumer’s desire and willingness to pay for a goods and service.
NEEDS : is something which is required and wanted by consumer, and it is consider a must under necessary condition.
We need cloths to wear. Human definitely needs something to cover their body. But do you really need so many cloths to put on our body? How many cloths you can wear for the day? For youth, do they really need smartphone all the time? The answer is NOT. But know your needs and demands well; you will only buy things when it is necessary. You need food when you are hungry. You need drinks when you are thirsty. You don’t need fancy cloths, just you think is pretty and you buy and keep without wearing it. You don’t need to buy a lot of shoes or slipper, because you only have two foots. Smartphone is not a necessary to have it. Without smartphone, you also will be smart and rich in your mind. Doesn’t mean that having smartphone will make you smart. People always have wrong idea about Demands and Needs. And this always caused them to spend more than they are expected. Act now; ask yourself whenever you want to spend the money you’re working hard for it. Dun thinks it is stupid action. This is definitely worth it.
3) Placing your Credit card with CASH
Everybody knows that credit card is more convenience than cash. And credit card means, you are using your future money. Everything you pay in credit card, you need to settle the bill every month. Be honest, do you really clear your debts every month? The balance unpaid will show in the next bills all the time. The amount will be increasing with interest charges and every time you swipe the card. Instead of using credit card, try to bring some cash whenever you make a purchase. This is a more efficient way to control your spending. Dun use credit card when you going to super market, dun use credit card when you buying fuel, dun use credit card when you just want to purchase 50 dollar things. And people never think about it, this small amount add up is a huge amount. When you pay by credit card, you will only notice it when the bills come. With cash, you will alert every time when you make the payment. Because your cash in your wallet will be reducing, then you will start to calculate and planning you money spending wisely.
4) Shop Smartly
A lot of people thinking this are a very old lady way, especially for young lady. No way. Whenever it said, shop smartly, means you have to compare price and quality for your purchase. Never trust about the advertisement. You may get same things in different place with cheaper price. Sometime consumer just confuse of what they want. They will follow the advertisement without thinking twice. Take a simple example. Buying a smartphone later, it is more save & safe than buying it when it just start new launch. The reason is the first batch new launch it may have some technical problem which is found only after consumer using it. And definitely the price will be cheaper after a while the product in the market. Woman’s like shopping. Spend wisely, shop smartly. That’s always great sale held by retailers. Dun rushing all the time to get new things for yourself. A little patient will help you save more. Instead you may have the extra saving to purchase other things.
5) Think Wisely
This is a very important step. People like comparing for every second. Stop feeling envy and jealous about other people. Every human being is unique. Whatever you have, they might dun have. Whatever they have, that’s not necessary for you to have it also. Just feel happy of what you have, of what GOD has given to you. Always remember, whatever you dream it, you have it. If you keep make comparison with your friends, you want to be like them, you will always spending more just to make yourself like them. Like always, it is out of what you can afford to pay. You have to think wisely and spend wisely. Besides this, think wisely could be referring to a lot of things. Think wisely of what you want to buy, think wisely of how much you earn and how much you spend. Think wisely of things you DEMAND and things you NEED. Remember, you always have to spend within the budget you could afford to pay. If not, definitely you will over spending ALL the time.