The talk of money and budgeting is always a popular topic in approaching the new year. Many might be looping in a new savings scheme or getting by with their old savings plan. Needless to say, the core of all the savings madness starts from the basics and almost every tactic really spells from these three things that Apartment Therapy shared.
Spend Less than You Earn
Who is guilty? The simple pleasures that many don't see as splurge literally are the culprit on this number one tip. The daily coffee on the way to work or the additional $100 spent monthly on a mobile plan upgrade doesn't seem a pain in the wallet but these innocent purchases when added up together do actually accumulate a number in one's earnings.
"Add up what you make in a month, and then add up what you spend in a month (on bills, everyday expenses and anything else). If the second number is bigger than the first, you have to cut something (or many things) out," the outlet advised.
Pay Yourself First
Include savings every time you receive your earnings. Set the money that you want to save beforehand and never make this the last in your priority. Most often, the savings plan mess up when the money intended for savings is mixed up with the budget for the monthly expenses.
"While you might be able to stash some pennies away with whatever's left at the end of the month, you'll see your savings really grow when you learn to pay yourself first before (or alongside) your other monthly expenses," as noted from the article.
Don't Borrow From the Future
This scenario is familiar, we sometimes borrow money in the thought that we can pay this debt on the upcoming payday but this is never really a wise financial decision. The outlet advised to always stay in control with one's expenses and to only allow spending on things that one can afford on their budget.
