money

3 simple ways to manage your budget

I have a little money to spend each month after I pay off those regular expenses such as the mortgage,  internet plan, study loan, and etc. How do I manage to survive without overspending? Below are my current practices to make sure everything is within my budget.

1   Save first, spend later

budget spreadsheet
my household monthly budget in 2018

If you read my previous post regarding on how to budget, I am having a personal financial crisis now where I don’t have enough saving and also lack of emergency fund.

One of the ways I handle the stress of my financial status is to save the money which is based on my estimation at the beginning of the month. Whenever leftover money in the previous month, it will be included in the saving also. This will prevent myself from making the assumption that “I have extra money from the previous month and I can spend more now”. Thus, this becomes my habit to save whatever I have at the beginning of the month and it makes me feel secure.

2   Put the same amount of money in the wallet every day/week

Although you can’t save from those fix expenditure, you can spend less for buying the groceries and eating out! Therefore, I put some amount of money in my wallet weekly to avoid from buying unnecessary things in the week. In addition, at the end of the week, I will take out the remains and put it in a container and leave it there. At the end of the month, I still can save some money!

3   Eat healthier, save more

porridge
One of my dinner (ingredient: minced pork meat, cabbage, brown rice, white pepper powder and soy sauce)

Get your kitchenware and starting cooking! Spend some time to search for cheaper and healthier recipes, get the fresh ingredient and learn the way to maintain its freshness, and make your own healthy dishes. You will spend more if you choose to eat out, the petrol, the services tax, and parking fee. Most of the time, the outside food contains a lot of coloring, preservative, and MSG to make the food looks tasty and fresh. But this will slowly affect your health! Learn how to make some simple and delicious dishes is a good way to save the money, at the same time restore our body fitness.

From time to time, I realize that I can actually save a lot through this simple step. Though it might be tough to stick with these habits at first, eventually I get used to it and happy to see my saving is growing. I also prepare a coin saving container for my husband and I am very happy to say that, my husband is willing to save the coins and these are for the BABY! I believe in one day, we will out of stress from handling our finance and be ready for FINANCIAL FREEDOM in the next few years.

If you have the better idea on how to manage the spending, please do not hesitate to leave the suggestion below.

money

Top 3 reasons not to get a credit card

Budgeting and saving my money have become an essential task for me this year. I decided to stop using the credit card although it can be a key financial tool for me if used responsibly. There are some reasons for me to stop using it.

credit card
stop using the credit card!

1   Blowing my budget

The biggest problem of having a credit card is that it encourages me to spend money that I don’t have. Most of the time, it does not require me to pay off my balance each month, so I will easily overspend without staying on my budget.

2   High-interest rates 

Credit card company will charge an enormous amount of interest if you are not able to pay off the money you spent at the end of each month. In other words, if I carry a balance at the end of each month, all my purchases will end up costing me a little more.

3   Credit card fraud

The credit card is the common target for scammers. Sometimes you might not know your credit card number has been stolen until you receive your monthly statement. Therefore, I need to always keep those receipts and review the monthly bill to confirm that it accurately reflects my purchases. It is adding stress to me and it is time-consuming too.

Credit cards can make my life easier and be a great tool, but it can become a huge financial burden to me if I do not use it wisely.

Since the debit card nowadays is very convenient will it allows me to spend money by drawing on the only funds that I deposited with the card provider, I can stay within my budget. Same as the credit card, I don’t have to carry a lot of money with me wherever I go.

Do you have any experiences with a credit card? Feel free to share with me under the comment below.