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It is one thing to have money and a different kettle of fish entirely to spend it. These two are exact opposites of each other. Being in possession of money hardly poses any problem. Spending it does, because you could be rich this minute and poor the next. Getting money these days is also becoming increasingly difficult and so is balancing the check book. This is the reason why spending shrewdly is imperative. You have to spend your hard earned money smartly. There is no margin for error else you are back to square one in a jiffy.
Where do you start off? First, determine the amount of money you make monthly. Once you have done this, the next step you should take is to implement the famous 70/30 rule. Remember spending wisely entails meeting your basic needs while saving for the rainy day. The 70/30 rule teaches that you make use of 70 percent of your income and save the remaining thirty on a fixed basis.
This formula has proven to be a very effective one. Whatever you need should be taken care of adequately by the bulk 70 percent, while the thirty kept aside could form part of an emergency fund which you would need in the near future. Draw a monthly budget of the things you need on the 70 percent and strike out all the items you do not really need. Stick to this budget conscientiously when you go shopping. Do not buy things outside it except you really need them. Also, take note of expenses that have become somewhat fixed, e.g. your monthly satellite subscription. Is it wise to be paying extra dollars for channels you aren't watching?
The next thing you should do is to pull away from debt. This is because they make it difficult for you to plan. Even when you do, they eat up a large chunk of what you have. If you have already incurred some, pay off those with high interest rates as fast as possible. They do a lot of damage to your finances.
Also, ensure that you buy things in bulk. This saves your money in the long run and leaves you less susceptible to unfriendly fluctuations in the price market. Be discreet while handling your cash. You don't always need to hustle for it every now and then. With the right planning, you would satisfy your needs and keep some money away for the future. Don't live above your means. The more money you have, the more value it should have to you.
