It’s no secret that money is a big part of our lives. Managing money while making good financial decisions is important so that you won’t struggle at the end of the month. Now the big question is, how do inexperienced youngsters like us learn to not struggle financially?
Budgeting & Not Over Spending
Remember that everything you spend will decide how bitterly you’re going to live at the end of the month, so be very wise on how you spend your money. One of the methods that will save you from running out of money would be the 5:3:2 rule. Split the money that you’ve obtained within a month into 3 parts. 50% goes into your survival, the must haves. 30% goes into entertainment, this is where you treat yourself. The remaining 20% goes into your savings account. Another tip to be mindful of your finances, would be switching to cash. Limit yourself on how much you can spend every week. This will allow you to be effective on planning how to survive with your current cash status.
Keep your receipts and calculate them at the end of the month to keep track of all the money you’ve spent. This will also allow you to re-think the value of the items you’ve spent on. Take note of what you did great and what you didn’t so it won’t be repeated in the following months. Some people might not like to calculate since it may come across as a hassle. A money manager app would be perfect for them to solve this issue! All you need to do is key in the amount of money spent. This way, the app will do all the calculations and notify you when your spending habits exceeds budget.