i) Know Your Worth
If you are unaware of the value of your time, even the frugal living or coupon-clipping tips would not help you to save a decent amount of money. The fact that even students and homemakers are worth on an hourly basis can make the idea of extreme savings recommendations a total waste of effort and precious time. In order to understand the fact in a better way, you can consider sewing a pair of jeans or preparing your personal laundry soap as a good investment. Now, you calculate the time taken in doing so with your normal hourly wage.
ii) Budget Your Credit Card Purchases
Most people use their credit cards to make any kind of purchase. It is fine that you are paying the credit amount every month on time. However, it is difficult to keep track of your purchases. You would be unaware of your spending in each type of category. Hence, it is always advisable to keep a track of the usage of different credit cards along with the budget category like dining out, clothes, entertainment, etc. By doing this, you are able to plan about your repayment within 30 days. Moreover, you would also be able to know about the budget categories, which are posing as the biggest barriers to vacation funds, retirement savings or paying off your mortgage as soon as possible.
iii) Delay Gratification
Most of the people are so addicted to the idea of sale that they do not think twice before heading to a sale and spend their entire fortune in purchasing good. This kind of impulsive shopping is not only going to prove hazardous to your finances but can cause havoc on your space for storage as well. Hence, it is always important that you give yourself at least 24-hours cooling off time to understand the uselessness of the non-essential buys. It is better to wait for the next sale period so that you can make up your mind to buy only necessary items at a lower price than before.
iv) Beg, Borrow and Barter
Generally, people do not like to borrow things from friends or co-workers. They always feel that it is always better to own their personal things. However, it is not a good idea. One must understand the importance of saving. If a product or tool is needed once or twice in a year then it is better to borrow them. At any given circumstances if you do not want to borrow things then at least rent the items. You can pay in cash or kind to the lender as per the consent of both the parties.
v) Document Experiences
It is common with all people to spend heavily on fun and entertainment but later forget the amount of money spent on such activities. It is always advisable to make note of your expenditure on entertainment in a scrapbook, writing a blog, etc. so that you have a clear idea of your ability to spend on them and the amount you are actually spending.
It is true that you would not be able to follow all the above-mentioned ways to manage your finances from the first day itself. However, a small step to begin with always counts. Hence, start with one with the least things to maintain and eventually start on following everything as needed. This would surely help you manage your money in the right way.
