You think and think harder, why you always run out of cash whenever it comes to fulfilling your wishes?
Well, the problem is not with money, the problem is you! Not being rude but that’s the truth!
But, let’s see how to live a limitless life on a limited budget!
If you think, you can easily live a life of financial stability, without considering good savings, then I tell you, that’s absolutely not possible.
Sufficient savings is the key to happiness. The more you save, the more you have!
Your wealth is never measured by how much you earn, rather by how much savings you have!
So your first aim should be to start building enough savings to help you cope up with difficult and emergency situations in life!Most of the people go by the rule that they can save after they are done with the expenses part. But with me, I like to keep things a bit different, and plan savings first, where I always set aside a fixed amount each month dedicated toward savings!
Once I’m done with the savings I have ample room to experiment with my leftover cash.
I can spend it just the way I like. No bindings, and no stress surrounding my spending habits.
I would suggest you do the exact same thing! Make sure to have some money get straight away into your savings account, each month on your payday!
Probably that’s the best way to give a head start to your savings goals as a starter!
So I am assuming that you are done with setting up a fixed savings amount, each month from your salary.
Now, I would want you to understand zero-based budgeting!
The purpose to follow this style of budgeting is to utilize every single dollar of your paycheck!
This is only effective if you can completely figure out the type of spendings you do and what are your needs and wants.
In this budgeting, you list all your expenses that you know of, one by one, as per their order of importance!
So if I were you, I would first list down my grocery bills, foods, etc. But remember, eat-outs and restaurant or bar costs are luxury spending. Here I want you to list your necessary expenses first.
Hence after groceries, comes the utility bills and the loan payments.
I hope you are getting a rough idea, how you should go on with listing your expenses!
Now assign values to those expenses. Each expense should carry its amount!
Now add those amounts up and see whether or not it’s covering the whole of your income!
If it covers then it’s okay, and if it’s not, then it’s better! With this extra money you have, you can experiment just the way you want.
So, you figure out any such expense that’s coming to your mind! It could be anything, starting from buying a pullover for the winter to 3 martinis at the bar!
Whatever it is, your aim should be to cover the whole of your salary!
Well, well, well, look what we are talking about!
We Americans are meant to live, breathe, and die on credit cards man!
But, that’s the dumbest thing you can do.The great American dream is not living a life full of debts and liabilities. It’s touching the sky with no strings attached. It’s freedom and self-independence!
Now, you only think, what credit cards do to us.
You believe that these cards are yours, and you can do whatever you want with them.
The truth is, it’s not yours! It’s someone else’s money that you are using for your expenses, because you can’t afford to pay for your own goods!
So from now onwards, make it a habit to only use cash for your day to day purchases! These credit cards can come in handy in times of emergency, and you should not abuse them!