how to manage your money

HOW TO MANAGE MONEY

A great recession hits the world recently. The economic downturn started in United States in 2007 and it has affected so many countries. There are lots of people who lost their job, the salary decrease and now the price increase. Because of this, people are trying to save their money. But they don’t know how to manage it, instead they spend more rather than to save it. A lot of people says “ Saving is boring, shopping is fun!”. There are three ways to manage your money:

1) Spend it

2) Save it

3) Give it away

Try to make a budget plan, get a paper and pen and write down all your expenses and your budget for it. ”one of the most valuable and sensible things you can do with your money is to give it away.” Chris Farrell adds: “when you think about what matters most, it’s usually relationships, experiences and the sense of making difference, not money and possessions” Which is true because you are going to be happy and you’ll feel good if you help others. Money makes some people blind and greedy, but they are not really happy with it. It will just make bring you more stress in your life. You have to be contented on what you have as long as it provides your needs. There’s nothing wrong in dreaming for more, but you should know your limit. Sometimes it just turns out to a disaster. Like joining some networking or games related to gambling. Yes, you can be rich but it’s not forever. At the first place, you did not work hard for that money, it’s an easy money right? But this won’t last for lifetime and you are going back to zero. If this happens to you, well, you don’t know how to manage your money.

HOW YOU CAN SAVE

First before you buy an expensive item, try to think carefully if it is really needed. Because some people buy expensive things so that others would envy them. Even they don’t really need it.

Second if there are things that you really need, try to find some new items that are on sale or for good used items.

Third if you do not feel compelled to buy popular name brands, you can save money. And if you feel that the item is vital, try looking for something similar in a discount or secondhand shop. Sometimes items from the secondhand shop are better than those expensive and popular brands. And it’s way cheaper so you could save your money for good.

Fourth try to consider that it usually cost less to buy ingredients and cook meals than it does to eat out. Rather than buying expensive drinks, drink water instead. It is much healthier and easier on your pocket. Instead of dining out, try to cook at home or teach your love ones how to cook. You can also try gardening, so you don’t have to buy some ingredients; you’ll have more than buying in a market.

It’s better to be a cautious saver, as to be a generous giver, than to be a selfish spender. Try to start to manage your money now before it’s too late.