Bought your new golden plated Rolex watch? A new car? Or a new phone? Good for you. But if it would have been a wise person, he wouldn’t have done that. What would he do with the money? He would have preferred to put it into some savings, maybe investing a part of it to increase the amount or repay his debts. With his old watch, his old car or an old phone, he may look unimpressive. But he’ll have the amount ready when he needs them the most, as he has kept control of expenses in mind always.
With our limited amount of income, it’s tough for us to avail of all the facilities of this world. But we need to choose our priorities. Everybody dreams bigger than whatever they have achieved. The lower class wants to get promoted to the middle class, while the middle class wants to get promoted to the top. Millionaires dream of becoming billionaires. But how will you manage to make your dream true? Well, making your dream successful is always up to you, but you can get assistance with some points that can make you think about control of expenses.
Avoid Extravagant Lifestyle
Definitely, you can lead an extravagant lifestyle if you can afford it. However, if you choose not to, that won’t hamper you much. Avoid buying new watches, cars, phones, and other things. The new watch will show the same time as the old one. The new car may have better horsepower but just think once. Do you actually need that much horsepower or is it just because to show off that you can afford one? If your old phone is already working fine, why do you need a new phone? Cause it has some new features? Well, were you dying before that, when your phone doesn’t have the features? Probably not. Do you love to go to parties? Well, who doesn’t? But limiting them is wise.
Choose Your Priorities
Know and understand this. You cannot have everything. ‘You cannot have your cake and eat it (too)’. So choose your necessities. Going out for a movie every day or frequently is definitely not something that will help you in control of expenses. Try to plan your shopping during discount days, or shops providing discounts. There is a popular theory termed “50/30/20 rule” coined by bankruptcy expert Elizabeth Warren in 2010. It says Spend 50% of your after-tax income in needs and repaying debts. Keep the remaining 30% for your wants like shopping, dining out, etc. The rest 20% strictly goes to savings. If you cannot fit your needs within 50%, know that you cannot afford them. And if your debts are still not clear, you have to make them up from your 30%.
Few More Tips
There are certain other small efforts that you can put to control the expenses.
- The first and foremost thing is to stay healthy. An unwanted medical emergency is the last thing that anybody wants in their life. Try to eat fresh food cooked at home, carry your own drinking water and try to carry out the freehand physical exercise at home.
- Do not avail of domestic help until and unless it’s much needed.
- Switch of the lights and fans that you don’t need to get a save on electricity bills.
- Getting things insured may seem like a headache, but in the long run, they provide security to avoid emergencies.
- Avoiding addictive substances like cigarettes, alcohol, and others would be a wise decision to control the expense.
Control Of Expenses And Daily Life
It’s just that ‘if there is a will, there is a way’. So if you want to control your expenses, you will always find out one. It may not include the above-mentioned points, but we wish it’s a beneficial one. Control of expenses not only helps you to increase your savings but also helps you to lead a better and disciplined lifestyle.