As a person's earning capacity increases so does his spending habits. Young individuals despite earning a hefty salary are hardly able to save enough amount after monthly expenses.
Shopaholics have a tendency to buy things which are not even needed. Spending can be controlled by following simple steps and sticking to it. Initially one may face some difficulties, however, once you start saving it will become a habit.
Here are simple steps to be followed to control spendings:
Save before you spend
Book an FD or recurring deposit as soon as you receive a salary. Or set aside a particular amount every month before you plan your budget.
One can opt for automated options to book F ixed Deposit or recurring deposit. If you want to invest, one can opt for systematic investment plans which is one of the best ways to start investing.
Avoid Using Plastic
Individuals interested in saving money should carry cash when going for shopping as it will help to stick to the budget. Using a credit card or debit card will tempt you to shop more without even realizing.
Make a simple budget and update the same on a daily basis to know where you stand. Make use of App which will help you save and track your expenses.
Avoid buying luxury items
Cut spending on luxury items which can only provide temporary comfort and which are not need based.
Control on Online Spending
Many individuals are addicted to shopping online. Retailers and e-commerce companies are always luring customers with attractive offers and discounts. So list out things which you need and buy according to the list.
Set aside some amount as an emergency fund which is to be used only in case of emergency. Make sure amount is sufficient, if anything extra can be used for investment.
Keep checking statements
Regularly checking bank statements, credit card statements, which will give you a fair idea of your spending habits and will help you in controlling the same.
Make use of APPs
There are many banking and personal finance apps which will help you to make a budget and track the same.
Make sure to enter details as and when you spend on something. Some apps are linked to your account and it will show you debit and credit history.
Stop following trends
Following latest trend will make you spend more as fashion keeps changing. Make sure you have the right attire and accessory for the occasion. Fashion is how you carry yourself.