They say money begets money. But, money multiplying isn’t easy unless you are equally careful and competent to stop wasting it. Having said that, we mean, despite your high income, you may not be able to save cash unless you are careful enough to stop wasting your cash. You know what every waste here that you stop essentially contributes to the bottom line and thus, leaves you with an additional amount of cash in hand. Save that money with the savings account. But, the million dollar question is how to stop a waste here.
Key areas for stopping a waste:
- Goal setting: What you want to become in life or where you want to see yourself in the next five years, for instance, can be a real game changer here. Having said that, we mean, setting your goals in advance helps you command over your spend.
- A careful study of your spending pattern: Believe it or not, many of you keep spending money at the slightest opportunity. Having said that, we mean, many people (maybe you are just one of them) spend money on less important or unimportant things. For instance, buying razor blades such as the Mach 3, you will get a little more close save than before. But, you may cut your beard many places and you will need to buy medicines to treat those. Similarly, you will find that you are spending too heavy on your designer clothes and others that you rarely use. In all those cases, you can readily shift to the next best alternative available in your niche market and stop wasting your cash. It is, therefore, your ability to study your spending pattern in the first place that will help you minimise a waste here.
- Segregating spends in order of importance: Like the five fingers of your hand, all the expenses that you incur aren’t the same. For instance, money that you spend for your kids’ education or maybe for the healthcare services is worth spending. Any compromise here will be disastrous. It further construes that you must be able to identify expenses in order of its’ importance so that you are able to take the right decision here befitting your short-term and long-term goals of life.
- Strategy to optimise spend: Now, you have a clear idea about the heads of expenses along with the order of its’ merits and the spend figures. Therefore, it is your duty to fix a strategy to optimise spend under each head. For instance, address concerns like how much insurance is just right for your car and where you should buy that insurance. You will be happy to know that there are several portals that let you compare multiple offers here. Thus, buying insurance online and as much as you require give you a financial freedom.
In short, to stop wasting your cash, you have to be a little creative with your genuine intentions of saving money. In other words, it is essentially your ingenuity and the desire to save cash for the exigencies and many other important things of your life. So, the next time you are tempted to spend big, remind yourself that money saved is money earned and it is none but you have to bear the exigencies such as the medical bills etc.