I spent on small things, and I didn't realize that I spent most of my salary on things that I didn't need. I didn't mind those expenses because the costs were negligible compared to my salary. I used to buy coffee during the morning right before I go to work. I would dine out twice or thrice a week with my girlfriend. I never realized that every peso I spent splurging on those little things would add up.
I started by recording each peso I spent in a spreadsheet. Whenever I spend something, I record it on my phone and put it on my excel file in the morning. After a couple of weeks of recording my expenses, I began to see where my salary was going. I then made a budget on how much I should spend every week and committed to stick with that budget. After a couple of weeks, I added my credit card expenses, bills and kept a record on all my investments and income.
Like most people, I belong to the majority of the population. I have limited resources that I have to manage. It was only when I had a complete picture of my expenses and income that I was able to make sound decisions. I was able to make good strategies on how I will approach my finances and investments.
1 comment:
Taking on a lot of financial obligations is never sensible. It can weigh heavy on your income, and consequently drain out your finances, even those that you might have saved earlier.
And yes, saving for the future isn’t really helpful. One should imbibe the financial literacy in him to know how to invest. Stagnant money never has the chance of growth, and unless you take on a bit of risk, you’ll never taste success. However, one shouldn’t keep all the eggs in the same basket during investing. That’s because if the basket gets hit, all the eggs will be ruined. One should therefore evaluate the risks and diversify the investments. Otherwise, he may risk losing all his hard earned money at one go.
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