If you are sinking in debt or have the ignominy of zero savings, and yet have no control over your money whenever you visit a mall or market – there is no need to despair. Some simple measures can take you out of this vicious cycle in no time. This data is gathered, not from financial experts but from the lessons learnt the hard way by boys and girls like yourself. Read on.
Set a budget – it is all well to say that you are not going to spend any money this weekend or this entire month and then hope you stay strong. But, it is easier said than done. What is practical for the shopping girl/boy is to set a budget, usually money that you can easily spend without feeling guilty and then use that, and only that, to cover your shopping trips throughout the month.
Rearrange or look through your wardrobe – sometimes if you look carefully, you often feel there is already so much that you already have. If you do this right before a visit to a mall, then there will be lesser chances of picking something up on impulse.
Divide your salary or monthly allowance An easy way to keep to the shopping budget is to divide the monthly salary into three aspects – expenses, shopping and savings. Make sure that your expenses are taken out at the beginning of the month and do not integrate it with the shopping money. For example, do not use the money out of your shopping for groceries and vice versa.
Set up a recurring deposit – if saving on your own account is near impossible, then make a recurring deposit at your bank with automatic monthly deductions and then forget that the money is yours. Do this immediately and if you get a raise at work, then it is time to raise the recurring deposit, even if the amount is miniscule.
Special payments If you get an incentive pay-out or a fat bonus check, at least put 50 per cent of this amount into savings; try and do it immediately.
Pay your bills as early as possible, though you may not be required to pay your phone or electricity bills until the middle of the month, pay them on the very day you get your salary. This holds true for anything else that is totally necessary like a visit to the dentist or salon. Get it over with as soon as possible.
Plan for expensive or nice things – if there is something nice and expensive that you must absolutely have, then do not pick it up on impulse, thinking that you can make up for it by skimping on your later shopping. Instead, plan for it. For example, if you have seen a leather handbag that costs Rs. 7,000 and is too much for you, then try not to buy any bags for about three months. Instead of buying three bags for Rs. 2,000 each, it is better to buy that one nice bag. Also, if a sale is around the corner, wait and see if the said bag is likely to come on sale, if it doesn’t, buy it anyway and feel good about it.
Sale time This is one season where even the most practical woman sitting next to you at work is likely to go berserk and a season, where you need to be careful. Again, set a sale budget and decide in advance what you really need. Do you want the loafers or the watch? Also, do not waste your money on cheap stuff that has become cheaper and which you can afford when it is not on sale. Instead, buy the nice, expensive stuff that is unthinkable when it is not half price.
Eating out or ordering in A lot of money and calories can be wasted from ordering in and eating out too much. Make a plan. Eat out only during weekends or if you go out somewhere in the middle of the week. Also, try to limit your ordering in to once a week if you are feeling weak.
Credit card debt Try paying 30 per cent more than the minimum payments required. In a few months, your entire debt will be paid off. Then, do not use your credit card, except for an emergency. Like a real emergency at a hospital. An easy way to do this is to put the card in a corner of your wallet or in a hidden zip that you would not normally look into. This is tough but the most important step out of financial hell.
