Money is closely related to our life. In modern society, we cannot satisfy our basic human needs without money. So we need to be a wise spender. Here are three tips to let us be wise spenders.
Firstly, we should learn to reduce unnecessary expenditure in order to manage our finances properly. We should be able to distinguish between necessary expenses and unnecessary expenses. Also, we may understand how fashion and advertisements influence our consumption behavior. Then we can save the money for these items.
Secondly, we can make an expenditure budget. It helps us achieve our financial objective and avoid wasting money. When setting up an expenditure budget, we should stick to the principle of ‘living within our budget’. That is, balancing our expenditures against our revenues. If we fail to do so, after a week, we may find that the actual amount of money left for savings and donations is less than that budgeted. Worse still, we may use up our income without even knowing how it happened. We can keep a daily record of our expenditures. This enables us to know whether we have spent within our budget. If we have unfortunately exceeded our budget, we can still find out why. And it also tells us when we should start tightening our belt!
Thirdly, we should use the credit cards carefully. Credit cards make consumption more convenient. However, because of this, we are likely to overspend or even consume beyond our repayment capacity. Also we should remind ourselves that we are like taking out a loan and that we should repay the card-issuing company as soon as possible. I really hope that these tips can help you to become a wise spender.