Gaining Control of Your Finances, the Old School Way
You've been getting loads of advice on how to double your money in no time, but before you can do that, you have to get serious cash into your bank account first. The first road to financial independence is to get a decent amount of money in and making it stay there. Fancy accounting and investment ventures will have to come in later; the first thing you have to do is save your cash the old-fashioned way. No, we're not talking about dropping loose change in piggy banks.
– Know the difference between what you want and what you need
A lot of people confuse the two â€“ they often assume that they need all the things that they want. The thing is, they'll be surprised to discover that they don't really need majority of what they've been dying to have, as in you'll survive just fine without buying it. Those who procure the latest gadgets that come out are often the ones guilty of this. It's not that they need that newly launched phone model; they just obsess incessantly about getting their hands on whatever is new.
– Know exactly where your money is going
The moment your cash comes out of the ATM, note where each centavo is being spent. This may sound a little too OC for your taste, but this is the only way to know how and where you spend your hard-earned cash. Keep all the receipts of your ATM withdrawals and the receipts of all your purchases. When you get home, list all of the amounts and see if they tally. This way, you will see how fast your money flies out of your hands, and will make you more conscious next time how you spend.
– Don't share what you don't have
You can't be a Good Samaritan everytime your friends and family asks to borrow some of your money. Don't misinterpret this one; there's nothing wrong with helping out people if you actually have lots to spare, but if your money is just enough for your basic expenses, learn how to graciously say no. Your family and friends will have to understand that you might encounter money problems later on, if you lend them what little cash you have.