[cinderella]

If you are having difficulties in budgeting, I would suggest to do this method. You may start it as soon as possible. We need to categorize our expenses based on needs and wants.

Divide your paper into two columns naming the first column as “NEEDS” and the other column as “WANTS”. Now, every time you spend money, you need to write it on the paper. For example, you bought a coffee from Starbucks, you can write it on the column for wants or you buy gasoline for your car, you can place it under the column needs. Then after a month or two, you will be able to see where your money goes. Do you spend more on your wants? Or needs? This way, you will be able to make a more realistic plan for your future spending.

No matter how much we earn, as long as we don’t control our spending, we will always end up living paycheck to paycheck or worst, be buried in debt.

[Fergal]

That's a good tip, thanks for sharing it with us cinderella. I will try applying it myself, it would help give more control and a much stronger knowledge of how I spend my money. I can see how it would also help identify potential areas for saving money. It's very easy to lose control of our money and to feel that we are always short, something simple and practical like this, could be of great assistance.

Is this something you do yourself cinderella? How is it working out for you?

Would you find it difficult to decide if some expenditures are needs or wants? I think for myself, it would be tempting to clarify most expenditure as needs, when in fact many of them should be wants.

[cinderella]

I am an advocate of having multiple source of income. I don't want to depend on one source for I believe that when we have multiple income streams, we won't get short of money. But, I realized that despite I have a good salary and I have other sources as well, there comes a time when I almost buried myself to debt. That was because I lost control of my expenses. I thought that because my salary increased to almost doubled my previous salary, I could spend on anything.

Added on the issue was the relatives who upon knowing that I was promoted started to ask money as if I found an overflowing stream of money. Others issues, the frequent dining out, food deliveries and online shopping.

The good thing is, it's not yet too late to change my way. This was my first step. I need to categorize my expenses. After almost a month, I've seen the difference and became more aware of what I spent my money on. I learn how to think twice before parting with my hard earned money. It may not be easy at first but I need to because I will be the one who will suffer if I won't help myself.

[Treborika]

You must plan and spend your money wisely. A budget that comprises of priorities like basic needs is highly recommended.

[JASPREET]

I am impressed with this tip,thanks I will try it for sometime and will share my experience

[Fergal]

Thanks cinderella, for posting a Top money tip. Sending ForumCoin now

[augusta]

This is why a lot of people keeps struggling daily we spend alot daily and if you are not prudent then we still remain poor. it isn't easy at all when you can't differentiate between needs and wants. We should spend more on our needs.

[peachpurple]

Great tips. I write down the list of things i want or need to buy. Write down the cost then decide how much i can buy. Never use a card because you can buy more and owe more

[sweerie_banana]

Keeping a record is very good for future references, and to show you your monthly expenditures.

[darkuszerx]

Good tip! I've implemented it more or less in my finances. I record expenses and income without missing anything. I even plan anything that makes me have to spend money or that will possibly enter my account

[sthiraanjani]

Reviewing your expenses is a good thing because you will be able to know if there are any unnecessary expenses.

[smoothmeatball]

Simple things that if we can do it every day, it will let us know where our money expenses are going every day, but most people seem to be too lazy to keep daily records of their finances.

[dvanbasten]

Great advice for people like me who can't even remember my expenses every day.