Are you always stressing over your due dates whenever the mailman comes to deliver your envelope containing your water/ electricity bills? Or in my case, whenever I get an email or sms notification regarding my monthly billables.
Are you always caught in a predicament as to how to pay off your debts despite making decent money? If you fit the bill, then we have all been there. Would you like to learn how to:
- Pay your living expenses without hurting your daily operating expenses?
- Keep debts to a manageable level?
- Save for the extras that make life enjoyable?
- Avoid constant money anxiety?
If so, then this post is for you. I have rounded up some easy and quick tips that we can all follow consistently to avoid undue stress whenever the due date for our bills looms closer every month.
- Track your Income, You might have an idea of how much you spend each month, but without cold-hard math, you really don’t have a clear indication of how much money is going out. Many people underestimate how much they spend, which can be a dangerous thing when it comes to keeping household finances in order. The best way to identify this number is to keep each and every receipt from all your expenses, and tally up a total. After adding up these numbers, you’ll have an accurate idea of how much you spend.
- SAVE, “It’s not how much you make, but what you do with what you’ve got. Proper money management does not involve a magic formula to find more money. It simply means getting the most from the money you do have.” Ever heard of this saying? It’s because sometimes all we need to do is SAVE. Allocate the bulk of your income for your monthly expenditures/ obligations ensuring that all these are paid on time, then the rest of it should go to savings/ investments so that you would have an emergency fund which would come in handy on a rainy day.
- Get the needed apps, I used to spend recklessly before when I was in my younger years since I didn’t know any better. But then again, tracking carefully the years I have worked to the amount found in my bank account didn’t really tally and didn’t make me feel secure at all. That’s why aside from keeping tabs on my daily/ monthly expenses via the use of my Money Manager App, downloadable in the AppStore, I also have a Gsheet for my Business Income and Expenses to effectively track how much I really am making on a monthly basis.
- Cut Unnecessary Costs, I know that with us always at home these days, that shopping apps or food delivery apps are such a handy tool to keep the boredom away however, all these consistent small purchases eventually add up little by little and sometimes you wouldn’t even notice it. I usually just order whatever I crave for via Foodpanda/ Lalafood/ Grabfood every afternoon after work, however, aside from it just adding up to my sugar intake, it ‘s also not a sustainable habit to maintain if I want to keep myself liquid over the course of the next few months. So whenever I feel the urge to order food, I just either drink tea of a glass of water or check out our fridge for some leftovers that I can eat and snack on.
- Append your income, Sometimes we need to append our income to afford us the happiness that our small purchases brings to us and in order to afford this, we need to have more cash in the bank so that our fixed monthly budget would not be disturbed or lessened. Build on your skillset, and maybe offer something other people may want, like doing graphic design for a brand, helping them manage their online presence by being a freelance social media manager, offer online consultations if you are a doctor or a licensed professional etc.
How about you? What other tips can you share in effectively managing your household expenses?