"Hand to mouth, as me get the money it done and it feel like next month end nah go come.
As me get the money it done, it done, it done, it done. Hand to mouth...Me get pay pon Friday and by Saturday is like me don't know where that deh"- Assassin "Hand to Mouth (2009)"
The words of this song is the sad reality for many people around the world. We get paid today and by tomorrow it's all gone. Not all situations are flexible, I know but do you believe that you can make a little change here and there to improve your financial situation even just a little bit? Once you earn money, no matter how small it is, it can and should be managed well.
I started managing my money strictly from as early as high school. My father was the only one with a job and there were 2 of us going to school. Though I initially complained, I had to find a way to make $300.00/$400.00 a day work for me because that's what he could afford. I lived about 15 minutes outside of Spanish Town, St. Catherine, so I had to take 2-3 vehicles to get to school in Kingston. When I subtracted my bus and taxi fare, I only had $160.00/$260.00 left daily and that meant that I would have to make some major sacrifices when it came to my choices of food. I wrote down my lunch money for the week and I subtracted my bus and taxi fare. From there I decided when I would have no food, just a snack or cooked lunch. I eventually started saving up the money to go to the supermarket and bought food in bulk, which was much cheaper for me.
When I got my first job in 2014, I was making $38,877.61 per month after taxes, yes, $500,000.00 per year (which was not what I wrote as my desired salary when I went to the job interview, but I got over it). This was when I started putting all the book keeping knowledge from accounts into practice. Monthly, I would record my income and subtract all my estimated expenses. It did take a while to adjust and develop discipline but it came. Every night when I got home from work, I recorded my current balances and kept track of my spending to make sure I didn't overspend and if I did overspend, I would adjust my budget for the following days to cover for that. Eventually, I got to a place where I only had to track my money once or twice per week. One size doesn't fit all, but here are some tips that I can really work for you:
1. Create a monthly budget and record all of your incomes and expenses for the month, quote exact figures where possible and estimate the rest. Account for the fixed expenses first, then allocate the remainder to your other expenses. Expenses such as utilities, rent etc. are more consistent and may not see any major changes on a monthly basis but for variable expenses such as food and transportation, you will have to make adjustments as necessary. Take a look at the "simple monthly budget" template in Microsoft Excel. It easy to use and very practical, I still use it to this day.
2. When you get your salary, pay for all your important bills first, eg. utilities, mortgage etc. before spending on anything else. Then put aside the money needed to get to and from work also accounting for meals. Then you can account for any savings/investments or rainy-day funds with the remaining money afterwards.
3. Withdraw funds to last you for a week, this can help to prevent overspending.
4. Try to save some money at least every 2 months according to your circumstances. Have you ever put money in a secret compartment in your bag and forgot that you did and then accidentally found it back one day when you were desperate need of some extra cash? "Aha! yes!" you may have thought. Saving money every month or every other month can give you that same feeling when a "rainy day" arrives.
5. Spend only on what you need to, if you don't need to spend it save it.
6. Don't borrow a loan unless it is absolutely necessary, especially if the loan attracts interest. The feeling of being debt free is amazing! If you must borrow a loan though, try to repay it as soon as possible.
7. Treat yourself every now and then. Be careful not to over indulge in spending on your wants.
It may sound like a huge task but you'll see how simple it becomes over time. You will find that it is a lot less stressful when take control of your finances.
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