to turn the yearn into reality. Not constantly buying things on credit and also
investing could help one achieve his/her saving goals.
Here are some
tips on becoming a prudent spender.
Are you
accounting for your income properly?
It is essential to account for your
income because it does not only helps but also gives you a general idea of what
you are spending your money on.
Although banks show you what you spend
your money on which is great, but sometimes you want to know the particular item
you spend your money on.
It is advisable to do an excel spreadsheet on
your expenses weekly or monthly, to help you know how to cut down unnecessary
cost.
Research and plan ahead
Moving, planning a trip? It is
important to have an idea how much things cost beforehand.
For example,
if you are planning a wedding in September, it will be helpful to have an idea
of how much it will cost by June so you can plan
accordingly.
Budget
This goes hand in hand with planning
ahead. It is very important to prioritise the necessities first, before the
luxuries.
Setting monthly goals
Apart from serving as a source
of motivation, proper goal setting can help break larger, intimidating
aspirations into smaller, more achievable stepping stones.
You should try
it.
Save, save, save!
Every opportunity you get, save. It is
also important to save for rainy days, travelling, events and other unplanned
expenses.
Be realistic
In as much as you might be desperate to
save, you need to be realistic about it. The fact Mr A saves one million monthly
doesn’t mean you can do the same. Your saving goals have to be feasible enough
for you to achieve them. Find out what works for you!
Make your goals
SMART
Specific
Measurable
Achievable
Realistic
Time-bound
[written
by Ijeoma Onyemaechi]
