“I really need to start saving. By the middle of every month, my bank balance goes to zero”
“My credit card always seems to be in negative balance. It’s a struggle to save any money in this city.”
“Wow! I have sent so much in just a few days. The salary day is still more than 20 days away. I wonder how we will survive until then.”
I am sure you all may have heard or exclaimed any of the above and more at different times of your life anywhere across the world. The cost of living in most of the big cities is definitely rising as the years pass by. Due to the economic slowdown in many parts of the planet, the salaries and the availability of jobs is surely not rising as fast. But is it still so difficult to save a ‘decent’ amount per month?
The term ‘decent’ or ‘good’ amount can have different connotations for different people. For some $1000 USD would be good enough while for others nothing less than $10,000 would do. A lot obviously depends on your salary, your liabilities, the city you stay in, the cost of basic necessities, your need for luxuries and so on and so forth.
Money is such a thing that we are never happy with how much ever we get. We always strive for more. I feel that many wrongly believe that if we get more money, we would save more. Instead, the normal human practice is to spend more since luxuries which weren’t available earlier are now in reach due to the increase in income. Therefore, its always important to multiply your sources of income which could include investments of any kind along with your regular daily salary.
In order to save, its important to do a few things right. Firstly, you need to ensure that you write down your daily expenses. Secondly, make it a point to review your expenses monthly and group them under common headings like “Entertainment”, “Long term expenses”, “Investments” etc. This would ensure you have a tab on how much you spend. Thirdly, its important to ensure that you decide how much you can invest per month / year. Don’t make it too tight that you don’t have enough money to enjoy as well.
And finally, its important to budget your long term expenses so that you can make 5 or 10 year plans accordingly. While all this may seem like a painstaking exercise, once you start doing it, you will surely feel that there’s still enough money even after spending whatever you wished for.
I have always believed that its never about “enough” money. Instead, its always about how well the finances are managed.