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| Manage your salary well and you'll never have to worry about a dime again. Image: idiva.com |
Some people, despite having a stable job, find it hard to manage their personal expenses and monthly salary so as not to starve. Some call their lifestyle as “living from pay check to pay check.” But can this be avoided? Yes, with some personal discipline and some helpful hints. Here are some tips that you can use to wisely manage your personal monthly finances.
Save and spend
Most people, upon receiving their salary, spend parts of it and save what is left; however, that is not wise at all. What if there is nothing left for you to save? One good thing to do is allot a portion of your salary as savings—and never touch it no matter what, unless necessary—and the remaining part of your salary to spend. For example, allot a quarter of your salary as savings and three-quarters of it for your monthly spending.
Plan your spending
Even before you get your hands on your salary, make a list of things that you need to spend on and the allotted amount for each item. If it is possible for you to determine your salary beforehand, then, the better as you can properly allot an amount for each item you need to spend on. However, do not forget to apply tip number 1 first.
Split the bills
If you have a monthly recurring fee and you receive your salary bimonthly, it is wise to split the bill. One way of splitting bills is to assign a salary date for each billing; for example, the house during the 15th, the credit card and electricity during the 30th, and so on. Another way to split the bill is to pay the bills due on that’s near your salary date; for example, your due date for you credit card is on the 25th, then, pay it during your salary on the 15th to avoid incurring penalties. Another way is to pay the bills twice a month as well; for example, your due date is on the 21st of December, then, pay it 50 percent in advance on November 30 and another 50 percent on December 15 to make sure you do not incur any penalty as well.
Avoid using credit cards as much as possible
Only use your credit cards during emergencies like health and well-being issues and food items when you run out of cash (but keep it to a minimum as well), but never on “emergency” shopping of clothes and accessories and dining.
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