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How To Save And Spend Wisely

There has been an increase in the number of people getting into financial trouble for the past few years. These are mostly people from age 40 years and below. These people are especially from young working adults who have graduated and have been working for one to two years. Many of these admitted that they have very little understanding or knowledge of basic personal financial management. They all agreed that having an early financial education is necessary. They would be in a better position to manage their personal finances if they had some basic skills on how to manage their finances wisely, such as spending within their means and to be financially prepared for life’s uncertainties without encountering any negative impact on their lives in the future.

The benefits of early financial planning.

You many think that financial planning is troublesome and that you have to give up doing things that you enjoy. If you have your own financial plan in place, you will be able to budget your money in a way so as to avoid excessive spending, getting into debts, and unnecessarily borrowing of money from friends or banks. With good financial planning and control, you will be free from financial worries and easier to achieve your personal goals in life.  You can click here for more details and information on your finance and budget.

The importance of saving.

Life is full of uncertainties but with proper planning, you will have some money saved for emergencies such as the breakdown of your car, temporary injuries or sickness that can prevent you from working, and etc. In time to come, this saving will also contribute to your retirement fund.

Little by little, becomes a lot.

The importance of preparing a budget.

It is true that keeping to your budget is not easy and you will need discipline to do so. But it will help you to:

  • ·       Spend and live within your monthly income
  • ·       Grow your saving
  • ·       Prepare for unexpected financial emergencies
  • ·       Keeping you on the path to realizing your financial goal
  • ·       Develop good habits in your financial management.

A need is something that you cannot do without such as food. A want is something which is not necessary and you can do without. In our present time, a smart phone is a “need” for communicating with people, online banking, and etc. Wanting the latest phone model with the latest feature is not a “need” but a “want”. Do not buy on impulse. Always ask yourself, “Is it something that you really need or something that you can do without?” This will help you to spend wisely and to live within your means. Impulse buying will create financial problems for you.

The safest way is to keep your money in saving or fixed deposit account. The interest is lower and the return slower than other form of investments but it is not risky. You may be able to grow your money faster through other forms of investments, but there is a greater risk and chances that you might lose some of your money or all of it. Do not put all your money into one type of investment. It is important and smarter to spread your money across a variety of investments to minimise the chances of financial losses. Be careful of get-rich-quick schemes that promise high return in very short time. Always remember not to be greedy. Be careful to check with trusted friends, family members whether such schemes are genuine or not.

Do not be tempted to take a loan or use your credit card just because you can have access to ready money upfront without thinking about the repayment. Do not be tempted with the offer of minimum payment of a small percentage stated on your credit card monthly statement because doing so will result in a huge debt due to the compounding effect.


  1. Great advice! These are hard times, prices of everything shooting up!!!


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