| "Try to cut down the
expenses by Do-It-Yourself" |
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What does RM100 get you if you are a young executive
in Kuala Lumpur? I think you could not do much about it except
for your normal routine transportation and meals. Some might finish
it within 1 day or 2 but some are able to survive with it for a
week, why is that? The reason is because it depends on how do you
spend it and the way you choose to live with.
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You can make your money stretch further if you
learn how to manage it carefully, such as:
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Know what you want to do with your money
Be transparent with your own financial status. Ensure you know
how much is left at the end of the month after allocating money
for your monthly expenses such as rental, car installment, petrol,
meals and other necessities.
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Know where your money goes
Be aware and alert where your money goes and make sure you do not
spend on unnecessary things. Things like clothes, shoes or accessories
are endless favourite buying products. There are always new trends,
fashion and style, so if you do not know how to limit yourself,
then all your money will be gone in the wind.
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Know your spending habits
If you found that you have not much money left to spend at the
end of the day, then you might want to look into your daily expenses,
grocery bills and households item. Check whether there are any
items that are not necessary to purchase.
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You should also look out for some of the warning
signals of bad spending habits that will lead to real money problems:
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You use your savings to pay current bills
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You delay payment of some bills which
you used to pay on time
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You take out new loans to pay for old
ones
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You defer your loan repayments
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You prefer to pay by installments when
buying everyday household items
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You owe more than you earn at the end
of the month
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You buy on impulse even though you know
you can't afford it
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Develop a prudent spending plan
Establish your monthly total income, total up all the fixed monthly
bills, repayments, daily living expenses and etc. Place aside
a fixed sum of money that is enough to handle emergency or
seasonal expenses. (Income tax, Insurance renewals, etc)
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Spend wisely and within your means
Ask yourself this question whenever you want to spend on something,
'Is that a need or just a want?' Do not spend on unnecessary
thing.
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Reserve some money for your future
If you found there is no surplus left after deducting all the expenses,
you might need to review your list again. Try to cut down the
expenses by Do-It-Yourself. For example, making your own breakfast
or cook more often, exercise at home or park instead of paying
to join the gym center and etc. You may want to cut down utility
bill by monitoring the use of your water and electricity and
also restrict calling at peak hours.
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