You may find that you earn less than you would like or need, but to escape the squeeze and get on well with your salary, the only one tip is to control your spending.
An extra installment here, an excess there, an unnecessary debt over there and you're done, you start to curl up with debt and a real snowball effect begins on your finances. To avoid seeing your money go unnecessarily, check out some tips on how to control your spending.
Don't spend more than you earn
The rule is very simple but very effective. Regardless of the salary amount, do not spend more than you earn or you risk seeing even the salaries of the next months already committed.
There are many people who earn minimum wages and can live very well, even without debt. Meanwhile, there are people with enviable salaries who are always in debt.
Therefore, your monthly spending limit should be your monthly income, or if possible even less so. Spending beyond your income will only cause problems and then there is no point in saying that prices have gone up, blaming the government, inflation or whoever.
If used well, your credit card can be a great ally. Find out which is the best day to use the card, check your credit card bills, check the number of installments on each purchase until the debt is fully paid off.
Lack of control over finances can be the fault of disorganization. Many people have no idea how much they earn, how much they spend and much less how much they owe. The tip for those who identify with this profile is to write down everything. And for that, it is worth using a notebook, a pad and even a personal budget spreadsheet.
With everything documented, it is much easier to see if everything you spend is really necessary and if necessary cut what is less important. But to keep track of spending you need to have the spreadsheet always up to date.
How to Properly Manage Your Money Like the Rich | Tom Ferry (April 2024)
- Career & Finance
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