When it comes to money, you can never be too cautious. Whether you like it or not, money is somewhat the sun around which all life activities revolve around. Therefore, it's never about how much you earn (although you should always endeavour to earn more) but how you utilize what you have. In order to take control of your finances and obtain financial freedom, you need to begin having principles and discipline that will help you not to overspend.
Once you get your salary, before anything else, put aside a fraction of the amount as savings. Probably 20-30 percent. After that, make a budget. While making the budget, totally ignore the 30% you set aside. Shut out the temptations to consider it. Budgeting will prevent you from being a victim of impulse buying and also spending your money on luxuries and leaving out the important things. While budgeting, you should also make a shopping list. Many people neglect doing so but believe me, it's important.
You should also focus on your needs first before your wants. Once you get your salary, pay your bills first. This includes house rent, fees, medical bills etc. Once you are done, roughly distribute the rest of the money in each day of the month and endeavour to use only the stipulated amount per day. The principle behind this is thinking of tomorrow. Most of us always think of the moment when it comes to spending.
Another thing, live within your means. Fancy living is short-lived. Always be careful to spend your money on what is necessary and what matters. Do not justify reckless spending on future "fantasies" and hopes that you will earn more in future, you will get a promotion, you will get a better job. Use what you have at hand always. Expecting more in future will only make you get disappointed and start surviving on debts if things do not work out for you. In the same light, expect the unexpected expenses and set aside money for them. This includes, medical bills and car repairs and home repairs which can not be avoided.
A word of caution before you leave, never borrow until it's extremely necessary. Borrowing money only makes you a slave to the lender and you can't achieve much because what you earn, you use to pay debt. Therefore no investment.
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