Control your expenditure - While this statement sounds more like common sense, many of us are not able to live up to it. No wonder more and more people are in debt and bankruptcy is at it’s all time high. While we all agree that enjoyment is a big part of our living.What is life worth living if we cannot even indulge on things we like. The key point here is about our ability to say no to ourselves and know when to tighten our belt. Take stock of your spending. What is your spending pattern and are you buying what is absolutely neccessary or are you over indulging on yourself?
As per our discussion earlier, we acknowledge that you can spend almost 90% of your income and still have enought to retire if we set aside 10% for our saving for investments. Guard this 10% savings from yourself. Very often we can be let off guard and compromise on our principles. Set aside the following rules. Be wise with your purchase. Tell yourself, do you really need to buy it now? can you buy a cheaper model or can you borrow it? Keep a written account of everything you purchase. Take stock regularly. You will be surprize how much you have spent. Be responsible. Do not pay your debt by incurring a new one. These days many people have the tendency to settle their credit card debt by borrowing from another card. This way , you will perpetually be in debt if you are not careful. Be realistic. Make sure you can afford it before you buy. Debt is like a silent killer, a thief. Before you know it , it starts to overwhelm you.
Try as far as possible try to pay for what you buy in cash. That way , you have a better visibility and a better feel of your spending. Add up your spending and ask yourself these question.
1. Do i have more money than expected?
2. Do i have less money than expected?
If your answer is more, than you are in control of your finance and that is a good sign. However, if your answer is less, then you will need to evaluate your strategy again and learn how to practice what you have set to do earlier.
Finally, whatever you do. you have to be honest with yourself on what you want to achieve. You will need to plan and strategize your moves and diligently work out your plans. There is no easy solution to everything in life. you have to live up your dream.
Blessings.
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