Do you have a constant source of income but have a hard time keeping it? Do you get a decent salary every end-month but you are broke two weeks later? Maybe your spending habits are wanting.
To keep money for the long-term requires planning and discipline. After all, we all want more money, we all having things we would rather spend our money on than misusing it. A few practices can make a huge difference.
Listed below are a few habits that are causing you to lose money.
1. Throwing away food
Did you buy a two-litre bottle of milk then forgot all about it in the fridge? Next time you check, the milk is expired and unfit for consumption, so you throw it away.
Buying just enough of what you need will help you avoid wasting money. If you notice your vegetables or food is about to spoil and you cannot use it fast enough, see if you can freeze it.
2. Living beyond your means
Do not live on credit. Do not purchase above your means and certainly do not live a champagne lifestyle on a beer budget. Work on ways to multiply your income, instead of exhausting it. If you cannot afford that trip, do not go on it. If you cannot afford the drinks, do not go beyond your budget to impress your friends.
Simply live within your means.
3. Buying coffee and lunch everyday
Buying coffee every day can send you back around Ksh. 54,574 a year. While it seems easy and convenient, ordering food costs more than making it at home.
Buy yourself a few travel mugs, invest in good coffee and make yours at home. It will cost you way less than buying it.
For lunch, carry a light snack in your lunch box, warm it up at lunch time, and save the restaurant/hotel money.
4. Paying late payment fees
There is nothing good about having to pay a late payment fee, and if you’re managing your money properly, then there’s no excuse for them either.
Get yourself a separate bills account, or use the envelope method (putting money for different bills in separate envelopes), them put enough money in there to cover all your bills. This way you will never pay a bill late and you never have to pay a late payment fee.
5. Not tracking your expenses
How much money did you spend last week? And what did you spend it on exactly? If you are not tracking your expenses, you are pretty much throwing money away.
Knowing what your expenses are, when your bills are due and what you spend your money on can help you avoid additional fees and charges. This will help you to reduce excess spending in areas you may not have even realized were a problem.
If you start to think of your income and expenses in the way a business would, you’ll get a much better grasp on where money is going and how to manage it.
