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What are the best ways i could change my spending habits ?
I want ways to split my paycheck so I can save money.
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Dell’s Answer
Hi Israel,
One of the most effective ways I found, when first starting out working and trying to manage money, I started by utilizing envelopes to establish savings for general reasons, paying bills, and buying my wants/needs. The visual representation of how much cash was in each envelope helped me manage my own emotions when it came to convincing myself not to buy something that I didn't necessarily need. I would make weekly deposits into a savings account that I would then not touch unless for an emergency. If you are trying to save for college, or a car, or any other big important purchases I would utilize a savings account for that. Commit to a set amount that is easily managed with your personal income, and then if you have extra after spending on necessities, you can allocate bonuses wherever you see fit!
If you are needing to decide whether or not to make a purchase, start with a list. Put on paper the ways that purchase might benefit you, how it might harm your savings in other ways, if it takes away from any other important purchases. Having the visual of the envelopes of cash, and the written out pros/cons really can help a lot of people when learning the basics of budgeting and saving!
Good Luck!
One of the most effective ways I found, when first starting out working and trying to manage money, I started by utilizing envelopes to establish savings for general reasons, paying bills, and buying my wants/needs. The visual representation of how much cash was in each envelope helped me manage my own emotions when it came to convincing myself not to buy something that I didn't necessarily need. I would make weekly deposits into a savings account that I would then not touch unless for an emergency. If you are trying to save for college, or a car, or any other big important purchases I would utilize a savings account for that. Commit to a set amount that is easily managed with your personal income, and then if you have extra after spending on necessities, you can allocate bonuses wherever you see fit!
If you are needing to decide whether or not to make a purchase, start with a list. Put on paper the ways that purchase might benefit you, how it might harm your savings in other ways, if it takes away from any other important purchases. Having the visual of the envelopes of cash, and the written out pros/cons really can help a lot of people when learning the basics of budgeting and saving!
Good Luck!
Updated
Dave’s Answer
At a young age, my sister would tell her son that any money he gets, half goes to the bank. I would start with that advice. If you can, start by putting half into savings. Or if you have monthly bills/expenses, pay those off first and then put half of what you have left over into a savings account. And then after you do that, take some of that leftover money (maybe $20 or whatever) and just put it in a petty cash box for emergencies.
Updated
Rebecca’s Answer
Thank you for your question. May students may have similar question.
Firstly, you may have to distinguish : what you need? what you want?
What you need? - This is something essential for your daily life. E.g. your meals, transport expenses, textbooks, etc.
What you want? - This is something that you would like to have but not essential. E.g. a pretty hoodies, expensive backpack, etc.
Below are my suggestions :
1. Put down how much pocket money you have every month
2. Put down the essential expenses to support your school life
3. After deducting 1-2, you will find out how much money remains
4. If you have anything you want, you can use the monies to buy. If you need more monies to buy the item you want, you can save the monies first and buy it later. However, I suggest you can consider to save some monies and re-consider the item is really you want twice before buying it.
Hope this helps! Good Luck!
Firstly, you may have to distinguish : what you need? what you want?
What you need? - This is something essential for your daily life. E.g. your meals, transport expenses, textbooks, etc.
What you want? - This is something that you would like to have but not essential. E.g. a pretty hoodies, expensive backpack, etc.
Below are my suggestions :
1. Put down how much pocket money you have every month
2. Put down the essential expenses to support your school life
3. After deducting 1-2, you will find out how much money remains
4. If you have anything you want, you can use the monies to buy. If you need more monies to buy the item you want, you can save the monies first and buy it later. However, I suggest you can consider to save some monies and re-consider the item is really you want twice before buying it.
Hope this helps! Good Luck!
Thanks for the advice. What are some things you ask yourself when you are tempted to buy something new?
Israel