A very common problem noticed among youngsters these days is that they always feel short of money, irrespective of how much they earn. There are so many people who earn decent amount of money, but still end up feeling short of it in the middle of the month. With no other option left, they either spend the second half of the month very miserly or miserably, or end up borrowing money from people around them, which eventually increases their debts and puts them into more trouble.
The simplest way to avoid this kind of a mess is to keep a check on one’s spending habits, and be a little more alert and wise on where all one’s money is going.
Depending On Credit
This is one of the most common causes of lack of money. People with Credit Cards have a tendency to use them to their maximum limit, till a point when the interests on the pending payments go so high, that they have no other choice but to shut the card down and clear the payment in bulk, as soon as possible. The huge payment might come in as an unexpected sudden expenditure, and could ruin one’s financial planning for quite some time.
Wishing A Little Too Much
There is a common belief and saying that a second toothbrush for a man is always going to be useless, because he possibly can’t use two at a time. In other words, some things are best when they are single, and there is a limited quantity of things that one needs or requires. When the situation is tight, and one knows that they don’t really have too much extra money to splurge, they should avoid impulsive buying as much as possible, and should restrict themselves to buying only the most basic essentials.
The ‘Pending’ Status
Careless attitude towards payment of bills, and not setting bank balances right can cause unnecessary surcharges, which will only keep on deducting more and more money from one’s account. Before one reaches the stage of regret to calculate how much of that wasted money could actually be used on something more productive, it’s best to develop the habit of clearing all bills on time, and never letting bank balances go below their mandatory limit.
It might sound really painful to put aside a portion of one’s salary in the initial years for saving, especially if it is someone’s first job and they are in the mood to splurge. But in the long run, these savings do come in handy to cover up unexpected costs and expenditures. Moreover, the feeling of getting some extra money when a certain fixed deposit matures, or when a certain amount of interest adds up to one’s savings account is definitely very good. It is a way of making money earn more money, and it helps a lot to ensure that one’s pockets are never empty.
Another thing to keep in mind is to never spend blindly, and always keep a tab of what all money is being spent where, so that similar kind of expenditures (especially lavish ones) can be avoided in a short span of time.
This guest post is contributed by Lauren Devaney. Apart from her interest in sports, she loves to write on money saving topics and has been using a website www.paydayloansuk.org.uk to fulfill all her financial needs.