Wednesday, September 21, 2011

Frugal Tip | Managing your earnings in simple way

I've been managing money since 16 years old & nobody taught me how. I just figured it out by myself.When I said manage, meaning I jot down Cash In, Cash Out & had a special book for it! I kept all expenses receipt, then threw them after wrote all down on what I spent & earned in any forms. I compared prices & won't simply buy necessities without thinking many times. And, I sold back my books just in case I got bored with it so....I could spend more on books!

It used to be, when obtained pocket money from my dad, I hardly spent it  as I brought my own food to mostly it went to bus fare.More extra would goes to story books, magazines & cassettes.Some goes to savings..

We are not wealthy but at least, we're more than okay than surviving like those unfortunates ones who could hardly can get one mouth of feed for days. It's a constant reminder to us to appreciate life more, you see. That's why I've keep on being frugal + delicious = frugalicious at all times. Eventhough you have so much money & can afford that much, try to be more on frugal side as you will never know what holds for you in the future.

Well, back to the main point. How do you manage your money?

My way is very simple. For full time working mother like me, I earned my salary with fixed amount monthly.

And, all I have to do is to distributed my earnings to three parts like this :-

Fixed is strictly for cash expenses that the amount would maintain the same monthly. Like childcare, hire purchase & other installment that tend to be my asset.Duration varies.

Cash is for whatever the remainings I have in hand that I can spend for whatever things I want to spend. It must based on priorities. An example, the need to replace my contact lenses stocks of 6 months plus is more important than spending new pair of pants.

Credit refers to my credit card expenses.Usually I will spend by the same amount that I can afford to pay for the following months.And, I try harder not to use my credit card most of the times.

And, on top of that, I also allocate & distribute my daily expenses for 20 days with fix amount like picture below.

Each packet contains fix money that I must spend per day for food at work or other miscellaneous for week days. Weekends excluded because dear hubby will spend for his beloved ones. :>

Meaning, I will try not to spend more than the money allocated everyday & the lesser the better.The balance of expenses money I will keep in there, not thinking about it till end of the month and surprise, surprise! Let's see how much balance of money I have! This balance it can be used for emergency, savings or splurge for my boys or even for myself definitely!

Life is too short. Make it simple.Don't stress yourself with financial burden.

1 comment:

  1. Kak Hanz, I do this too!! Haha... ada geng... I do try to allocate and distribute my daily expenses like u do, cuma tak masukkan dalam paket raya la... hehehe... One thing is, saya tak tulis my expenses ... hehe....


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