Contributed by Nicholine Akou
Economizing money is one of the most difficult task to handle. When you learn to economize the little you have, you will be able to handle a larger amount as your income increases. Learning how to manage your cash helps you stay within your budget and not run into debts at all times, below are five simple ways through which you can economize your money.
Set a long and a short term plan:
Setting a long and a short term plan enables you to distribute your income properly and not run out of cash when an urgent matter arises. A long term plan could be educating your kids, building a retirement home while a short term plan could be buying a car, going on picnics and more. Therefore setting this goal will automatically help you to manage your income and still live your life normally.
Make a to do list:
It is always good to have a to do list. This includes your expenditure on food, bills and other requirements scheduled for a particular amount of money. You have to make sure that you cover all the items on the list so that you wouldn’t be struggling with other expenses in the following month. Do not buy items that are not included on the list so you don’t exceed your budget.
Go for shopping twice a month:
It is advisable to go for shopping twice in a month. This will help reduce the cost of daily transportation and it will also help you reduce the desire of new items that were not on your to do list. It therefore offers you the chance to manage your money well.
Invest in other businesses:
It is risky to have just one source of income. So, investing in other businesses that will yield you profit in the long run is another way of economizing your money. It is good to have fun but be wise enough to think about investing for the future.
Make an automatic saving:
Choosing an automatic means of saving money is very important. Banks offer transfer between savings and checking account leaving you to decide on the amount on every paycheck to go straight into your account. By spitting your salary at once, it pulls you away from being tempted to spend all your income. Therefore, saving automatically will also help you spend judiciously.
The five point mentioned above, are not the only ways to manage money but I consider them as the easiest means. Hope they will be helpful to you.
Edited by Emiliene Alemkeng