A man who spends and saves money is the happiest man, because he has both enjoyments. - Samuel JohnsonThe struggle is real to be able to enjoy both worlds: be able to spend and save money. How we envy people whose pockets are deep and has a fat bulging wallet. They can buy anything they want without getting broke. This negative attitude is the main reason why many people get themselves buried in deep debt.
This article is not about lecturing people why it is their fault they are drowning in debts but to share simple ways how you can handle your finances.
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Set aside at least 10% of your monthly income for savings - a lot of people have difficulty in setting aside a portion of their salary for savings. It would be difficult at first but if you started practicing the habit of recording your daily expenses then you can cut off some expenses that are not really important and use that amount to put in your savings. It would require a rigid discipline on your part to be able to save a percentage of your salary for your savings. Slowly as you are able to save money, then you can set aside a fixed amount for your emergency fund, for your start up business and even for your retirement fund. It doesn't have to be all at once, you can save little by little until you are more comfortable to build up a nest egg for your emergency fund, business and retirement.
Always pay in cash - if you can avoid it don't use your credit card. Plastic money will always be a temptation to buy or purchase items that you will not normally spent on if you are paying in cash. Owning credit cards have become a nightmare for most employees and working class people. Many fell prey to paying only the minimum due amount which is the gateway to being buried in credit card debt. How many people had suffered mentally, emotionally and physically because of harassment from credit card collectors? If you must have a credit card, keep it to one credit card only, to be use for emergency purposes. Pay in full the amount you purchased but the bottom line is, to purchase only what you can pay comfortably with your salary.
Resist on going to that nearest mall sale -- almost every month there are "mall sales". Resist the temptation to line up even before the mall opens up! Most of the time during "mall sales" you end up buying things you don' t really need but you think is quite a bargain. Or you purchase items you already own or have at home. Reserve going to these sales if it is a back to school sale or a Christmas sale. Be a wise buyer and not an impulsive buyer.
Managing your daily finances, requires discipline, strategy, to keep your expenses low and setting aside a portion of your salary. It is not a bad practice also to give tithes. If you can give to our less fortunate brothers and sisters, then the Lord will bless you more.
Test me now in this, if I will not open for you the window of heaven and pour out for you a blessing until it overflows. - Matthew 3:10
In the end to effectively manage your finances it boils down to living within ones means and to be happy with a simple but abundant life.
Have you been a good steward of your finances? Care to share how?
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Middle life is beautiful.
Till next time. God bless.