For some people, personal finance might sound easy. When you finally got your money, all you will think about is how you should spend the money wisely. According to experts, you must prioritize your needs over your wants. Other people recommend allotting 10 to 25% of your money into your savings. Some will advise you to venture into small businesses. While there are various tips and guides on how to effectively manage your finances, you still end up getting into debt. Sometimes, you are left unaware if where all your money went.
To end the confusion as to when your life should financially improve, here are some rules to follow from Easy Credit Singapore:
Avoid High-Interest Debts
Life is hard. With high-interest debts, it can make your life harder. Whenever you borrow money, consider minimizing the damage when you opt for low-interest rates.
Ask for the loan details at Easy Credit Singapore before applying it. It would be useful if you make sure that there are no more additional fees or hidden charges included with the loan.
Take time to understand the terms and conditions so you will not have to pay more than what you expect.
Indeed, borrowing money is a privilege. However, this does not mean that you will take those that are being offered unto you.
Expenses Must be Lower than your Income
The number one rule in all personal loan courses is to remember that your expenses must be lower than your income. The logic behind this rule is simple. It will be best for you if you spend less than what you earn.
For example, if your monthly salary is Php 25, 000 after-tax, then your expenses such as transport, food, and bills must be Php 20,000 only or less. You can use the Php 5,000 difference for emergencies and future opportunities to improve your way of living.
If you think that your salary cannot cover the basics needs, then it is time to find other ways to earn more money.
Improve your Personal and Professional Relationships
Building a reliable and competent personal and professional relationship can help you in all aspects of your life. People around you can provide you with the support that you need every day. When there are good people around you, you can choose to engage in simple things at home instead of splurging out.
You can spend the weekends at home cooking or doing some chores. This will not require much money to spend. Boys can engage in games or have a barbecue night at home. Indeed, time with good people can help you save money on dining out and applying for a personal loan.
Keep Things Simple
Remember that having more is costly. When you buy more than what you think you need, you will end up having spoiled food in your fridge. Whenever you hoard more supplies in your cupboard, you will end up giving it away. As you keep on shopping for more clothes, you will not be able to wear half of these clothes in a month.
If you have more debts, it will result in more interest charges. More pets in your home will require more money for maintenance.
As such, it is best to keep things minimal and simple. With this, you can focus on the things you have. This will help you prevent resources from getting wasted and save more money for future use.
Plan your Weekly Meals
Indeed, dining out will let you spend more money versus when you cook your food at home. As such, planning your meals each week will save you money on unnecessary expenses on food deliveries and restaurants. Imagine the amount you can save if you eliminate the food delivery charges to your place.
Regularly Check Your Bills
It is best to set a certain amount every month to pay for your monthly bills. An example you would be billed for internet, electricity, cable, water, and other subscriptions. Sometimes, you get used to the amount that you don’t care whether you can lower it down or not.
Take advantage of the seasons when you can switch off your air conditioner and maximize the use of the fans. On the other hand, you can reduce water consumption during the rainy season. Drench your house plans under the rain versus watering it with potable water.
When you check your bills regularly, you can keep track of what needs to be paid and what needs to be canceled immediately. Sometimes, there are also offers which you can grab at a lower cost. Make sure to be mindful of what you pay and use. This can help you reduce your expenses and eradicate those that are not much of use to you or your family.
There are hundreds of rules on finance that you can read. Following them is up to your preferences. It will always pay if you try them. Check what works with your situation and share the good news with other people.