So you’ve just received your first paycheck – congratulations! This is Instant Gratification! If you’re thinking of spending it all in one day to celebrate – NO! Think again. Even if your friends or family or you yourself would force you to give that first salary bash, it is wiser to start planning on how to manage your finances. Don’t worry, you’d still get to celebrate anyway.
Now if you’ve already spent it, no worries. It’s not yet too late to be the master of your finances. Below are the
4 Tips that you could avoid Instant Gratification and Save for your Future
1. Set up a budget. Yes it sounds so trite, but it is true and a foolproof way to control your finances. In setting up your budget, besides the regular and important items such as food, travel allowance, household bills and financial obligations to family, there are some things that are always overlooked by many people which have to be considered in the budget too.Yes, it sounds so trite, but it is true and a foolproof way to control your finances. In setting up your budget, besides the regular and important items such as food, travel allowance, household bills and financial obligations to family, there are some things that are always overlooked by many people which have to be considered in the budget too.
Mary Hiers of Mint Life says “it would be smart for you to also set aside a portion of your money for the following:
• Household maintenance
• Spousal support
• Work wardrobe and upkeep
• Travel expenses
• Pet care
• Daily incidentals
• Bank account fees
• Car registration
• Holiday gifts
• Irregular or one-off expenses
Some of these may not be applicable to you, but at least you could choose which one fits you.
2. Keep a diary of all your expenses. According to The Money Advice Service, “keeping a spending diary is an effective way of seeing exactly what you spend your money on”. If you try to record all your expenses in a week, a month, or even longer, you can have a full picture of where your money goes. Try to record all purchases, even the small ones. This way, you get to see also things that are not really necessary so you can remove them from your spending list next time.get to see also things that are not really necessary so you can remove them from your spending list next time.
3. Never miss to pay your loans and credit cards. The Money Advice Service also teaches one good trick to minimizing your loans. “Pay off the debt that charges the highest rate of interest first.” this actually makes sense because it is faster to clear debts this way. Be mindful also of the terms of your loan agreements and never break those.
4. Set a savings goal. It is usual for first time employees to live from paycheck to paycheck. As early as now, set goals on how to save so you could plan for the next stages in your life such as marriage and having a family. To some, it may sound difficult to achieve, but there are a lot of ways you could do to save. One sure way to get it right is to open a personal savings account which you should never use for your daily expenses. Set a target amount to deposit in your account every month or even once in 3 months. Just be religious in putting away a portion of your income and you’ll soon realize that your savings are getting bigger. When your savings reach a handsome amount, you might even feel more driven to make it even bigger.
For more money tips and financial management ideas and to delay the thought of an instant gratification, get a copy of I Wish they Taught Money in High School at all major bookstores nationwide including National Bookstore, Fully Booked and Powerbooks. You can also purchase it online via http://www.lifestyleupgrade101.com/shop. We deliver for FREE nationwide!