The first thing to keep in mind before starting to discuss or think about the title is: everyone may encounter financial difficulties. Hence, it does make you human. You may say it adds stress to your life, but it really is common.
For millennials or entry-level positions, we all know that the salary you can get from your first job isnβt that big. Thatβs a fact that must stick in your thinking. With that amount in mind, how do you make the most out of it despite having difficulties?
For people who earn pretty well and enough for their day-to-day living, it might be easier for them to spend, but not save. Going back to the question: how do you make the most out of your salary?
Before the tips, let us try to think about this: what makes βenough,β enough? Now, you have to think about that as you read through. Keep in mind that these tips depend on how you apply them to your life!
The golden rule for this is: live within your means, which is also the first advice. This simply means that do not go overboard in terms of what you have. Your means must dictate the lifestyle that you can have.
Know the difference between needs and wants. One question to ask yourself before spending money is: do I need this? We all encountered βman has unlimited wantsβ from our Economics class, and thatβs true. Try to ponder on the difference: are you buying this because it is a priority or just a fad?
As you can observe, people may tell you to be organized even in non-monetary matters. This allows you to properly allocate specific budget for each of the things you must use your money on. Dissect everything from the bills you have to pay, food, and simple pleasures.
Choose the lifestyle that suits you. This is really one way of knowing yourself. You can always say no to designer bags, high-end restaurants, and grandeur trips if the wallet is too tight. Who says you cannot have fun on a tight budget? The key is, be creative and critical enough to figure out what works for you.
Have you ever tried being so meticulous about your finances? Now is the time. Follow a strict budget plan. This doesnβt mean that you have to starve yourself, of course. This will only allow you to allot budget wisely. A good advice is, when budgeting, allocate 50% for your expenses or things you cannot live without like food, transportation, electric bills, and many more. The remaining 50% is divided by two. You can allot 20% to reward yourself with whatever you like. The remaining 30% shall go to your savings.
Be thrifty. All these advices boil down to being a wise spender. For food, a great advice is always to prefer eating at home than dining in somewhere. While it is true that experiencing other food from time to time can be fulfilling, you must always remember that you have a working budget. For clothing needs, do not buy stuff you canβt and you wonβt wear regularly. If the budget is too tight, donβt buy clothes unless you ran out of functional ones. Problems being fashionista? Go to thrift shops! Your 1,000 pesos will surely go a long, long way.
Why not seek help from your friends about their financial management practices? This will allow you to compare and contrast yours and your friendsβ practices, because you can really learn from each other. After all, great friendships should be through richer or poorer, right?
Lastly, track your expenses in whatever way you want. If you think using pen and paper is too tedious, use your smartphone. In fact, there are quite a number of applications that you can download to help you with that. Tracking your expenses allows you to be aware of where your money goes. From there, you can experiment or do trial and error in terms of budgeting.
Talking about money can be so problematic. To some, seeing or hearing anything related to money makes them cringe. Let us face it. Money is not an easy thing. In this world and economy, every cent should be hard-earned. Life can be so tough sometimes when you encounter financial difficulties. Just remember, it lies on how you manage your money. The above advices can be altered based on someoneβs lifestyle.
As you finish reading this article, think of this: are the things in mind right now a want or a need? If itβs a want, disregard. It would surely be a waste of money if itβs not a priority. You must prioritize the latter. Wants can wait, but needs cannot. Simply put, itβs called a need because it would surely help you and itβs something practical. Good luck on your financial journey in the next few days!
