As someone who has limited money to spend, managing my finances is a must. Managing your finances is simply deciding where your money goes. Keep in mind that spending is very easy, but earning it takes time and skill.
I know a high school student who grew up poor. Her parents could not support her so she took shelter with different relatives through the years. One thing I learned from her is that she is very thrifty and wise on spending her hard-earned money through her side jobs while studying.
Here are some of my learnings through the years on spending money which I would like to share with you.
1. First of all, you must do your budgeting.
Budgeting your money is simple math. The one that’s difficult is deciding on where to put it. How much will you spend on food per month? How much will be your transportation per month? So sit down and take time to think and compute your budget.
I wrote a separate article in the past that discusses budgeting which you could visit.
2. Think thrice before spending on something that’s pricey.
I can’t remember how many times I’ve done this and no, I just did not think thrice but MANY times. If I’m going to purchase something that costs thousands, I will thoroughly think about it. Of course I’ve made some unnecessary purchases in the past but it has been my habit to carefully weigh the pros and cons.
3. Be mindful of “small” purchases.
Sometimes we tend not to compute small purchases because we think they’re just small. But if those small purchases accumulate, our expenses could be bigger than expected.
4. Do not purchase things just to make you “happy”.
I put quotation marks around the word “happy” because happiness can only be very temporary. Sometimes we just want to buy something to feel good about it, then after a few days, the happiness is already gone.
I bought an iPad almost a year ago and I am still happy about it because I am able to use it in my writing, researching, and other stuff. I am happy because it serves its purpose.
I know it’s your money but you could be misguided by temporary happiness. Not only you lost money, you also lost the chance to spend that money on something else that could really make you happy.
5. Always allot money for charity.
I believe that helping other people is a must. In fact, we actually don’t know if we will be needing help in the future. If we want us to be helped by other people in case we needed help, then we must also help others.
If you think you are well-off and have lots of extra money to spare, I urge you to donate. The happiness of helping (most especially if you are thanked) lasts forever.