Does the thought of month-end kindle a fear in your head? The fear of being broke. The fear of having to save every penny for fuel and food? The fear of having nothing to shell until the next paycheck arrives?
Well, these are the fears that many of us share. Being broke indeed is a bane.
Thankfully though, there’s hope, and ways out of the popular “broke” situation. You just need to keep a few things in mind, and eventually, you’ll see your finances treating you better.
So, buckle up as we share 5 lifesaver tips for keeping you from being broke.
- Set a Goal
If you haven’t been able to save anything in a long while, you may have started imagining how you want your finances to look like.
If that imagination is feasible, take it up as a goal. It’s crucial to have a defined goal depicting how your finances should be.
- Don’t Buy Liabilities, Buy Assets
Have you ever felt like you bought an item and it never stopped consuming money?
Like your car breaking down every other week. Or your smartphone or laptop failing every other month? Or your light-colored clothes requiring a dry-clean every time you wear them?
A straightforward solution is to invest in things that don’t require as much maintenance and care as these.
For example, you can buy a car that is more reliable and doesn’t keep burning cash every other week. Or you can buy your smartphone or laptop from a brand that doesn’t keep failing every now and then. Or maybe buy clothes that don’t get dirty that easily.
Note: Customer reviews and testimonials play a vital role in such planned purchases.
- Note Where You Spend Your Money
Where does all your money go?
One of the most common questions that many of our parents still ask us. And it makes sense, as a lot of times, we don’t even have an answer.
It turns out, that’s bad. Not being aware of where you spend your money means you don’t know how much you need to spend. Or how much you can potentially save.
That’s why it’s better to maintain an excel sheet where you keep a note of fields where you are to spend money along with the respective amounts.
By adding up the amounts for all these fields, you will get to know how much money you need to spend for your requirements. The money that’s left with you after these expenses will be what you can potentially save or invest.
- Save at Least 10% Every Month
Whether you run a startup or work a 9-5, if you get paid every month, you must save at least 10% of your monthly revenue.
Saving this amount every month will mean that you’ll have a mini-fortune by the end of the year. Result? You’ll not be broke. Instead, you’ll have capital that you can keep adding more money to or use for a new business.
- Try Not to Lend Money
We know how hard it is to say no to a friend. And when money is involved, the deal becomes even more intense. But hey, do you really have enough to lend out at the moment?
If not, you must be clear about this. Don’t unnecessarily push yourself just because you are too shy to say no.
Instead, if you want to help, you can suggest to your friends some online places like Mulah that offer quick and easy loans that are sanctioned in less than 24 hours.
This will save you from shelling out bucks, when you can’t afford to, and will help your friends as well.
