How to Avoid Going Broke
Do you have to eat plain bread and instant noodles every end of the month while waiting for payday?
We know, life’s too short to worry about every little thing but being broke is the worst feeling in the world. You have to reject invitations to go out, count your pennies during the end of the month and some people even skip meals to save a few ringgit. Instead of spending your paycheck once you get it, why don’t you follow a few of these tips? Say goodbye to your days of skipping breakfast and eating bread for dinner!
1 – FIRST AND FOREMOST
Make it a habit or set a monthly reminder in your phone to pay your credit card, phone, and Internet bill once you get your paycheck. If you’re forgetful, set up Direct Debit for all of your bills to be deducted in the first week of the month because that’s when most get their salary.
In addition to paying off your bills, make sure to put away at least 10 percent of your earnings into a savings account right after receiving your pay. If you want to save up for something such as a new phone, put in more!
2 – LIVE WITHIN YOUR MEANS
Every month, draw up a budget and stick to it. This is especially in the entertainment department. When you hit the upper limit
of this budget, it’s time to say ‘no’. A real friend would encourage you to save money and be alright with just your company instead of needing to splash out on food and drinks. If you find that you didn’t go out a lot this month, whatever that’s left over from the budget can be put in your savings!
Additionally, look at your salary and think long and hard about your budget. Always give some serious thought about commitments such as buying a car or property because these are not little purchases and could put a huge dent in your monthly spending.
3 – SHOP SMART
There’s no harm in looking for a bargain. Instead of buying something new and trendy, scout around a thrift store!
On top of saving money, you’re also helping the environment by not filling up the landfills with clothes that you might only wear for a few months while it’s trendy.
There are plenty of online marketplaces if you’re looking for something. When browsing, do ensure that the sellers are trustworthy by checking their ratings and reviews. Do look for items which are guaranteed by the website to give you your money back if there are any discrepancies and more.
4 – SAVING FOR A RAINY DAY
In case of an emergency or if you’re suddenly retrenched, it’s best to have savings of around three to six months equivalent of your salary. Put this money in a Fixed Deposit account so you won’t be able to touch it unless absolutely necessary. A Fixed Deposit account will usually have a higher interest rate compared to a regular savings account depending on how long you leave money in there for.
Tip: If you get a raise at work, no matter how small, immediately stick it in your ‘rainy day’ fund. Additionally, if you’ve finished paying off your car or any other item, put that same amount into this emergency fund as well!
5 – QUIT SMOKING
The price of cigarettes has been increasing yearly so why not try kicking the habit in order to get physically healthy and also have a healthy bank account? Let’s round up the price of a box of cigarettes to RM20 and say, you buy a box every week. That’ll go up to at least RM80 a month that’s going up in literal smoke!
There’s no need to quit cold turkey because that may make you feel sick. Go at it in halves so if you’re used to smoking five sticks a day, cut down to two and keep the other three for the next day. Keep going until you feel ready to whittle this down to one stick a day and eventually, one stick every other day until you’ve stopped.
Tip: Calculate how much in total you spend on cigarettes in a month and stick it in a jar at the beginning of the month. If you buy one pack less that month, put that money into a jar and don’t touch it! Keep going until you reach the three-month mark and count how much you’ve saved!