Do you sometimes feel like you are struggling to make ends meet monthly?
With the cost of living increasing all the time, the more we should learn how to manage spending so that we worry less about money.
I would like to introduce a magic word that could help you enjoy massive savings… if used well.
This word is something many of us are familiar with. In fact, many of us love doing it.
So to help in your efforts to save money, do consider using this simple word to guide yourself to more savings.
Instead of complaining that your monthly salary is too low, try applying the “SPEND” rule to your daily life.
“S” For Shop Wisely
The first S of the SPEND rule, is to shop wisely.
Most of us are overspending for all different kinds of reasons. One of the main reasons for overspending is shopping. Most ladies love to shop, and what happens when they try to buy everything they like?
Without a way to control the urge to shop, they may overspend.
Over the years, online shopping has been much more popular among people. Consumers are able to purchase items online without much hassle, and it is so convenient adding every item to the cart and when you checkout, you will realise you’ve overspent.
After a year, you will also realise that you only wore some of the clothes/shoes for only a few times.
So, control your spending and shop wisely!
“P” For Proper Planning
When it comes to planning, I believe every one of us has a plan on how to spend our salary monthly, but the real difference is between proper planning and incorrect/inconsistent planning.
Proper planning means you stick firmly to what you’ve planned, setting money aside for savings and expenditure. If you saved too much, you won’t have enough to spend, and if you saved too little, you’ll be spending a lot more naturally.
If you have a plan to save $500 for that month but you changed the plan halfway during the month and took out $200 from it, that’s considered incorrect/inconsistent planning.
Set a fixed plan for the month and stick to it, it can be different plans every month, but most importantly is you have to be firm and stick to what you have planned for the month.
Remember, be firm!
“E” For Eating Out Less
I am very sure every single of us eats outside more than 2 times a month.
What we’re talking about is not the usual lunch you have during office hours; it’s those restaurants, cafes or food courts that we go to for lunch or dinner during off days. Money spent at these restaurants can add up to a huge amount over a month.
Yes, there can be one or two days you patronize these restaurants, reward yourself with some good food for working so hard, but do not overspend due to dining at high-class restaurants.
Home-cooked food is just as good, healthy and it’s nice to take some time off your busy schedule to spend with your family members.
“N” For Need… or Want?
Differentiate between what you need, and what you want.
Needs are things that are a necessity in your daily life. Examples of needs are, paying off your bills, transportation, meals and more.
Examples of wants are the latest iPhone, the latest gaming console, a high-end gaming computer, a stylish watch, and so much more. You will have to prioritize what you need more than what you want to control your spending.
Many people get confused between a “need” and a “want”, spending unnecessarily on things that they already possess, and realise that they’re struggling to make ends meet after that.
Write down a list of things that you need to be spending money on, and another list of items that you want to have.
Looking at your list, you can purchase your “wants” once you’ve calculated that you have sufficient money for all your “needs” for that month.
“D” For Don’t Gamble
Last but not least, the most important law of the “SPEND” rule…
Do not gamble.
There are many people in this world that try their luck at gambling just because they’re struggling financially, they hope to make some quick money by gambling so that they can make ends meet and live comfortably.
But the truth is, these people will normally end up in debt. Gambling is pure luck, there are no patterns or strategy for you to have an edge in winning.
By trying your luck when you are already struggling with money, you’re basically committing suicide.
If you have a thinking that you want to set aside some money for gambling purposes monthly, I would suggest you use that money to purchase your “wants” instead of gambling.
Now you have an easy way to remind yourself whenever you feel the urge to splurge. Follow it closely to enjoy bigger savings this year.