11:04 26 September 2013
The truth is, regardless of the amount of money you have, if you don’t know how to handle it, either way you will still go bust. The basic rules for managing finances are universal and the same.
Following are some time-tested practicable tips on how to manage your “meagre” income:
Never borrow money or take on a loan
Loans are great at the time when we get the loan proceeds. If it was borrowed for an emergency, it will give us great relief to finally have a solution to the emergency. However, if the loan was acquired impulsively and the proceeds were spent on items or activities that you do not have budget for, then you will end up paying the principal amount plus the interest, which will further put your financial standing in danger.
Set-up a detailed budget and stick to it
If you want to successfully manage your finances, you should set up a detailed budget of your income and expenses. Set the limits for all your needs and activities, change or reassign the figures based on your needs if you have to and stick to the budget.
Take advantage of price cuts
If you need to buy something like appliances or home furnishings, do not grab the first item that catches your eye. If you shop around, you will find items equal in quality and specs or even better, at lower costs.
Exercise self-control and discipline
Even the best of intentions are rendered naught when lack of will power creeps in. Temptations are all around, coming in from all directions. It will be too easy to just give in to prodding of friends and families to buy something or go on an unscheduled and unbudgeted trip. The indiscretion could cost your pocketbook dearly and leave you more stressed than ever.