Do you find that despite earning 20% more this year than you did last year; you are still living paycheck-to-paycheck? If so, nip the practice in the bud by taking these basic steps.
- Budget realistically for savings and leisure spending.
- Gradually make changes. Sudden, drastic cutting down make the new budget plan difficult to stick to.
- Practice the 10% rule: calculate how much money you have left minus bills, necessities and savings and then spend 10% less than your means.
- Treat yourself in other ways that don’t involve high spending.
- Automate your savings to enforce the discipline.
- Consider a fat bank account your ‘reward’ for the hard work you’ve done.
- Change your relationship with money: just because you have it, doesn’t mean you should spend it.