personal finance Archives | Page 36 of 39

4 Powerful Tips To Become A Smart Spender

Have you ever desired to purchase something so bad but cannot afford it then, later you found out that a similar thing is available at a different store for a cheaper price? This circumstance can be prevented if you know how to spend wisely! Being a smart spender entails having enough knowledge to make the right purchase and to justify why it is the best choice.

1. SET A CLEAR PATH

It is important to develop a tangible and realistic savings goal that you can achieve little by little everyday. Yes! You must keep a small portion of your money regularly and add it to your savings account. Make it tangible by calculating the compound interest with the savings interval set to “daily”. Be amaze as you see how your small savings can increase through time. Truly, this tip will keep you motivated.

2. AVOID NEEDLESS EXPENDITURES

Have you ever shopped for a bikini (on sale) and realized that you already have one back home? Items that are usually seasonal such as swimming attires or winter coats are usually put at the back of your clothes and left forgotten. To avoid needless expenditures, make it a habit to check what you already have before buying. You can also organize your stuff as much as you can before a trip and be sure that you separated what you need that are still in mint condition.

3. COMPARE PRICES

Knowing you made the best purchase means you spend effort on comparing stores and its products in terms of price, design, quality, and so much more. Learning how to patiently browse through the nearby stores before buying something is smart. Also, you can shop around by comparing the prices online. There may be times when shopping online is cheaper especially with free shipping and clearance sales.

4. WORK FOR YOURSELF

If you are recently laid-off from work, one of your most practical options is to be self-employed. Certainly, when the conditions are suitable…it is much cheaper to hire yourself than to get someone to work for you. If you do not have enough money for transportation, food, clothing, or other expenses, working freelance can help you land back on your feet.

Related Article: Real Ways To Make Money Online

Image Credits: @Daman via Flickr with Creative Commons License

Sources: 1, 2, & 3

5 Ways To Budget Your Start-Up Business Like A Boss

There comes a time when your lack of skills on accounting and budgeting will be a dilemma once you opened your small business. You may be knowledgeable in sales and trading but budgeting is important too. Budgeting helps the business owner to determine whether hey have sufficient money to fund the operations, expand the small business, and generate profit for oneself. Without this, you may spend more than what you earn.

The good news is that, there are modern alternatives to make your budgeting feast quicker and easier such as using Smartphone Apps that highlight your business’ expenses. And, on that note, here are the 5 Ways To Budget Your Start-Up Business Like A Boss…

1. DO TONS OF RESEARCH

Businesses may not be diverse but there are similarities. So, do tons of research on the local library, online forums, and start-up business owners about their company’s budget and financial plan. Use a platform like Quora or Yahoo Answers to enable you to ask the users on certain prices of the materials you must use or where to buy them. This will ensure that you get the best deal without spending too much.

2. ORGANIZE THE NUMBERS

After doing your research, organize the numbers by putting it inside an Excel spreadsheet. Analyze and estimate the total amount of money you must allocate on different categories such as raw materials, rent, insurance, and taxes. You may also put the estimated percentage of revenue for each category.

3. USE A SOFTWARE

Aside from using an Excel spreadsheet, you may budget like a pro by using accounting software called inDinero. inDinero helps you run the small business better as it safeguards your transactions, your cash flow, and your expenses. It connects the bank accounts so you can visualize where your money goes. Furthermore, it helps you with your payrolls and taxes. You can also outsource your accounting tasks with company that is willing to provide cloud accounting service such as Quickbooks or Xero for a fraction of the cost.

4. REMOVE THE UNNECESSARY

Upon analyzing your cash flow and expenses, consider cutting the costs of the things that are unnecessary. Save more by taking advantage of the payment terms offered by the supplier or by purchasing on the start of a new billing cycle.

5. BE READY FOR THE WORST

Most of the expenses, such as office supplies and salary costs, are predictable. But some unforeseen things such as higher petrol prices may happen that will spike up your expenses for that month. This is why it is important to be ready for the worst. Do not let these unfortunate events stress you or put you in debt.

Image Credits: John O’Nolan via Flickr with Creative Commons License

Sources: 1 & 2

6 Money Hacks To Keep You On Budget

Are you having a difficulty to stay on budget every month? Perhaps it is about time to try a new approach. Here are just some ways to improve your financial situation…

1. MAKE SAVINGS THE FOCAL POINT

I am assuming that you are already set with your budget. You know how much money is coming in and how much money you have now. To grow that money and to prepare for major spending (e.g., buying a property or a car), you must focus on saving. Set up a savings account to make things easier for you. Then, allot an amount to save each month. Seeing your savings balance increase will be a treat to your eyes.

2. SPEND THE CASH YOU HAVE

Whenever I am going out, I leave my credit/debit cards behind and put a relatively small amount of cash in my wallet. This amount is enough for me to survive the day. Furthermore, I am not tempted to buy unnecessary things even if there are several shopping malls along the way.

You can also apply this trick to stay on your budget and be mindful about how much you spend. Try it for a few weeks first to get used to it.

3. REVAMP AND RECYCLE YOUR STUFF

Fix, refurbish, or recycle your furniture, decor, or appliance that are still in good condition instead of saving up money to replace these. As you revamp your stuff, use warm colored paints to brighten up the mood! Or, recycle your old drawer and turn it into a shelf. There are many ways you can think of to upgrade the look of your home without having to spend so, get your creative juices going!

Image Credits: Sean and Lauren via Flickr with Creative Commons License

4. CUT DOWN ON UNHEALTHY HABITS

Unhealthy habits, such as drinking alcohol or smoking tobacco, that you enjoy on a regular basis can not only increase your insurance premiums but also your daily expenses. When you decide to stop drinking and smoking entirely, you will see your bills going down and you will feel improvements in your health – in no time.

5. PRESERVE THE RECEIPTS

To make a budget, you probably stored a bunch of receipts and monitored your expenses for a month. But, you still need to keep an eye on it in order to stick on your budget. Save up all your receipts and categorize them. If you find something that you spend too much on, analyze if you lower your spending on it. For instance, frequent restaurant take-outs can put a toll on your budget.

6. REWARD YOURSELF

One of the quickest ways to adapt a new approach is to have a reward system. Reward yourself each time you reach your financial goal. You do not have to spend a hefty amount to indulge. Have a sleepover with your friends or read a delightful book. Finding ways to associate the budgeting process to a positive feeling will help you reinforce more good habits and get rid of the unhealthy ones.

Image Credits: Vox Efx via Flickr with Creative Commons License

Sources: 1 & 2

Why It Is Essential To Surround Yourself With Financially Savvy Friends

As the Mexican Proverb once said: “Tell me who your friends are and I’ll tell you who you are.”

It is no secret that your friends influence your life in one-way or the other. This influence can either be small such as picking an outfit to work or huge such as choosing which bank to invest on. Either way, being surround by financially responsible friends is always a good idea.

Here are the reasons why:

1. THEY CAN TELL YOU WHEN TO STOP

When you are trying to eliminate an unhealthy habit such as overspending, you must first recognize that the problem exists. Financially savvy friends who care deeply about you can tell you when your spending goes overboard. Because sometimes, all it takes is a little nudging from your friends. Having a friend who will make you realize that you have a problem can make you think harder about your spending weaknesses.

2. THEY CAN STEER YOU TO BETTER FINANCIAL DECISIONS

The time spent with peers increases as the child ages. As the time increases, the power of peer pressure tends to increase as well. Using peer pressure to your advantage, you can make friends with people who are thrifty as they lead you to better financial decisions. For instance, instead of going to a fancy restaurant, they will opt for having a fun dinner at your place while splitting the expenses for pizzas and beverages.

3. THEY CAN HELP YOU DEAL WITH A FINANCIAL CRISIS

The reality manifests that layoffs, bankruptcies, and closings happen around us. Having friends who understand how important money is can help you deal with these unforeseen financial crises. They can help by listening to your dilemma, by connecting you to the resources of the community, and by the power of small deeds (e.g., cooking food or calling to catch up).

4. THEY CAN HELP YOU GROW

Your friend does not have to be as monetarily wise as Warren Buffet to guide you to better finances. You can be both starting from the bottom as long as you are responsible for each other’s financial growth. Do this by reminding yourselves about the monetary goals you set. And, if you have no financially responsible friends, you can always introduce them to the idea. Start by introducing the basics of budgeting such as knowing the envelope budgeting technique.

Image Credits: Riza Nugraha via Flickr With Creative Commons License

Truly, money matters get easier when you have financially savvy friends to support you along the way!

Do Not Let These Feelings Drain Your Money

“Emotional Spender: Someone who spends money freely to satisfy his or her feelings at the moment.”

Whether the feelings or emotions are positive or not, letting these dictate your purchases may potentially lead to a disaster. Ask yourself, are you one of them? Another interesting characteristic that an emotional spender has is the regret after spending. This is sometimes due to spending more than one can afford. Fortunately, you can change for the better!

The first step you must take is to identify the problem by figuring out what emotions or feelings trigger your snap financial decisions. Then, use budgeting to guide you as you stop this nasty buying habit.

Here are some of the emotions that may affect your free spending:

1. ANGER

Let us start the list off with Anger. Shopping while you are angry makes you more likely to take risks. This is because purchasing while you are angry can make you feel empowered. For example, if you are angry with your spouse, you can just grab your credit card (i.e., from your joint account) and not care about how much you spend on clothes. An expensive revenge indeed!

Solution: Making yourself feel better by filling the void inside you is not a good move. Instead, lock yourself in a room, play your favorite song, and write down what you feel. Do these things to help you simmer down and avoid emotional purchases.

2. BOREDOM

Having too much time in your hands can make you spend more. Shopping, a very pleasant activity can keep you busy and make you feel occupied. So, it may act as a substitute for other fulfilling and productive activities. For example, if you work from home, it is natural to have a few hours to spare. As leisure, you decided to go on shopping trips since shopping is not only a boredom buster but also an activity you can do alone.

Solution: Find a fun hobby or activity to occupy you when you are bored. You may try cooking different pasta recipes or catching up on your favorite TV shows. Toggle.sg lets you watch episodes of your favorite shows at Channel 5, Channel 8, Channel U, Okto, Suria, and Vasantham – at no cost!

3. HAPPINESS

How can a positive feeling make you splurge your paycheck? Well, it is possible if you want to celebrate a milestone (e.g., promotion, raise, or graduation) in a grand fashion. According to research by Harris Interactive, 53% of people are guilty of celebratory shopping. This goes to show that shopping in a good note is normal but it may come with expensive price tags.

Solution: Celebrate a momentous event within your means. Having an intimate gathering of your closest loved ones is better than having a huge graduation party at a 5-star hotel. It is okay to indulge once in a while as long as you have money to spare. You deserve it!

CONCLUSION

Spending the money you either do not have or you can well spend elsewhere to satisfy your emotional needs only create more problems than solutions. If you set up a budget with a room for reasonable indulgence then, it is acceptable to spend. After all, that is how personal finance should work.

Image Credits: Antoine K via Flickr with Creative Commons License

Sources: 1 & 2

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