HOW TO CONTROL YOUR SPENDING

Money is damn central to our lives especially in the present monetized economy. How ever, most of us fail blatantly when it comes to controlling the way and manner we blow our cash. As a result, the money is never enough and borrowing becomes the most logical choice. How can you help manage your spendings? Here are some tips:

1. Avoid impulse spending
2. Have a budget
3. Concentrate on your needs, not wants
4. Understand the difference between celebrities, your friends and you.
5. Understand where you are coming from and where you intend to go.

AVOID IMPULSE SPENDING:

The greatest problem most of us have is removing money from our purses and bags when we have no intention of doing so. It is called impulse spending and achieves only one thing: poverty. Every dollar spent must be planned for. But how is that achieved? It is achieved by point number 2:

HAVE A BUDGET:

To avoid impulse spending, you must have a budget. A budget is simply a list of things you intend to do with your money which could segmented to either on weekly or monthly basis. However, a budget could be a bad one or a good one. What then makes a budget good or bad? The next point answers it.

CONCENTRATE ON YOUR NEEDS, NOT WANTS:

Having a budget does not always solve the problem especially if your budget is a bad one. What then is a bad budget? 'A bad budget is a budget that allows you to buy things you want, not need'. Thus, as a 'hustler', what you need is a simple car and not an SUV. If you budget includes an SUV, so much the worse for you; as a student, what you need is a simple Nokia and not a blackberry or iphone. Understand?

UNDERSTAND THE DIFFERENCE BETWEEN CELEBRITIES, YOUR FRIENDS AND YOU:

Most persons do not understand that some things are branded 'celebrity use only'. Such things are usually luxury goods that can easily damage. Such 'toys' as the Bugatti Veyron or the BB Porsche. These are simply luxury goods that are over-valued. The most annoying thing is that cheaper models can achieve the traditional functions of such devices easily. Why waste the money on a hummer for instance? Leave the celebrities to enjoy them - it was designed to facilitate their fake lives.

UNDERSTAND WHERE YOU ARE COMING FROM AND WHERE YOU INTEND TO GO:

Some of us are poor, no doubt. Why must we spend like the son of a senator or buy things a governor's wife is using. Plain stupidity if you ask me. But if we are patient enough and invest, we may surely get to that extent faster.

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