Maybe you feel like your money always disappears just as soon as it lands in your account. Surely someone must be stealing from you... right? It's time to call the cops!
Hold on a second. While it's always worth it to check what is being drawn out of your account, the most likely reason for your disappearing paycheque is not being aware of your spending.
Are you losing money? Keep reading to know how to avoid this!
Stitch up Holes in Your Pockets
If you are wondering how you are losing money, one of the ways is that you have holes in your pockets! This means that you may have been spending on unnecessary things.
Maybe it's the quick dash for a candy bar at the grocery store counter, or maybe you walked by a perfume shop that smells amazing and ended up buying something.
It is time to stitch up the holes in your pockets, and you can do this by avoiding unnecessary expenses. There are some techniques you can use to achieve this goal.
If you want to learn how to save money, settle on a budgeting plan that you can adhere to. A budget will help you allocate your personal finances to your different expenses.
One of the most popular methods to stop losing money is to follow the 50/20/30 budget rule. This way, you will immediately categorize your spending according to what you need, what you want, and what you should be saving.
With this budget plan, you will allocate 50% of your income to your needs. This includes expenses such as rent, mortgage, health and life insurance, groceries and utilities.
Then, you will have 30% of your income to your wants. This includes expenses such as handbags, vacations, gadgets, and going to the cinema.
The last 20% of your income should go to your savings. This includes adding to your savings account or your investment plans.
Having a budget will help you understand what you are spending on, and can help avoid wasting money on unnecessary expenses.
Don't Burn Your Paycheque
You may be overjoyed when you receive your paycheque, and the first thing you do is buy luxury items you've been waiting to purchase. Before you know it, you've burned your paycheque and have to drill a hole into your savings just to make ends meet.
Are you experiencing this right now? The good news is that there is a way out!
As soon as you receive money, don't spend it immediately. Allocate your spending according to your budget plan, and then start tracking your monthly finances.
Whenever money comes in, add it to a list. Whenever money comes out, add it to your expenses list. This will ensure that you know where your money is going.
With this tip, you will be able to discipline yourself and make sure you have money left over to save or invest.
You can also start listing what you need to buy before going shopping. This will prevent you from getting sidelined and purchasing that new pair of shoes while walking through the shopping centre. Write a list when you receive your paycheque and try to estimate how much you would be spending on everything.
Stop Giving Away Money
Stop giving away money! This sounds very straightforward and even obvious, but another tip to stop losing money is to keep a tighter rein on your wallet. This includes the money you spend paying for friends or lending to relatives.
In an ideal world, you would be able to provide for your own needs as well as everyone else's. If you are struggling with money right now, though, giving away money will harm your personal finances. Before you can offer support to others, you have to be able to support yourself.
It may be difficult to stop the habit of giving away money, but this is something you may need to start training yourself to do. Be aware of when you are tempted to pay for someone and refrain from doing so. If your relatives request support, let them know that you are currently struggling as well.
Don't Be Afraid of the Market
A lot of people believe that investing is only for people who have plenty of money and can afford to deal with the risk. This, however, is not true!
Inflation tends to decrease the purchasing power of your money, but investing your money can give you a higher rate of return that may maintain the value of your funds.
Not only that but going into investing will allow you to earn an additional income. If you feel like you need more money for your daily expenses or to fulfil a long-term financial plan, investing may be the way to go!
Stop Losing Money Now with These Financial Tips
If you have been losing money, chances are that you are not being robbed. You may instead simply be spending more than you should.
Never fear, though, because there are plenty of ways you can solve this problem. Stop spending on unnecessary expenses by choosing a budgeting plan, and don't burn your paycheque by tracking your finances regularly.
Even more so, stop giving away money until you can afford to do so, and don't be afraid of the investment market!
What are you waiting for? You can start improving your spending habits from now.
Contact us at Insurdinary to get the best insurance quotes.