Sunday, September 29, 2013
Living life to the fullest is one of the main principles people who spend extravagantly apply. Since they only live once and they think they are more than worthy to spend what they earn, they tend to concentrate themselves on investing on things that are in reality, unnecessary. Spending for leisure is one thing, but getting into debt because of pure wants which one cannot really afford is entirely different.
The concept that staying out of debt equates to self-restriction is a major factor on why people refuse to save a part of what they earn and not spend excessively. This is actually a myth. The truth is, saving and avoiding debt does not require you to live a life full of boredom and say ‘no’ to every occasion that can make you happy. Instead, it is more about being a responsible consumer and knowing when enough is enough.
The Wise Spender
Before you can fully create a budget scheme, it is important that you raise your self-awareness first. How much money you put into food, per say, should be tallied so that you’d get the exact proportion of where your money goes after a long month of hard work. To do this, observe yourself for one or two months and make an expenditure list for the whole day. Keep and collect all of your receipts so that you won’t miss out on anything. Then, make a pie chart of how much of your money is allocated for food, bills, leisure, etc. Through this, you would be able to analyse your expenditure and cut down on unnecessary items. Also, you would be able to know where you are spending too much and why.
The Wise Earner
Contentment is important to attain happiness, but it can be a disadvantage if you are too contented that you fall short on your monthly expenses. So, what can you do? Should you cut on your food allowance and monthly bills? The answer is no. Necessities should never be cut down, except of you are dining at fancy restaurants every day and 70% of your income is splurged solely on food. However, if you are not the luxurious type and you still find that your monthly salary is not enough to suffice your needs even if only a tiny portion is spent on luxury, then there is only one thing left for you to do: FIND A PART-TIME JOB. This way, you will never have to get into debt just to survive the whole month and you would also have more than enough to save. To achieve the financial success you are aspiring for, you must not only be wise in spending, but you must also be a wise earner. This combination will guarantee you a life where debt is absent.
The Wise Handler
Mishandled finances can be a total pain in the neck and for you to avoid such, you must be very cautious and you must monitor your own finances. Never rely on anyone else since it is your money at stake. Also, read and get informed. If you plan to invest on stocks, let’s say, you must know all the details necessary for you to earn and not bid goodbye to your money later on.
Sarah Del Rosario is a finance blogger from debt-settlement-review.toptenreviews.com, reliable site offering useful tips about debt settlement.