If we’re honest, January was an absolute blur… but now we’re in the second month of 2019 and it’s time to get our sh** together. Let’s start financially.
We might’ve went a little overboard with the spending- year-end sales, Christmas, one too many drinks- you get the gist, so it’s about time we figure out how to make that bank balance so much nicer to look at.
Do a quick financial makeover
All you need is 30 minutes and a notebook (or your laptop, whichever you prefer). Go through everything you’ve spent in 2018- take out the receipts and bank statements.
By laying all that out, you’ll be able to see if you been living within your means. Make sure to ask yourself these questions:
- Have you succeeded paying all your bills? Are you falling behind?
- Are you spending money on things you need or want? (There’s a big difference)
- How are you using your salary? Is money being put aside?
If everything seems to lean towards the negative side, it’s time for a makeover! Here’s how:
- Create or update your budget to suit your current needs and lifestyle
Things are constantly changing in your life. How much you earn, and your needs may not be the same as it was a few years ago. The important thing is making sure that your spending, bills and savings goals are balanced. Follow the 50/20/30 rule; 50% is for your essential expenses, 20% is for your priorities, and the remaining 30% is for lifestyle choices.
- Cut spending
Cutting down your spending is inevitable if you want to stick to your budget. Once you have your budget planned out, you can look into where you can cut down on. Look into any everyday habits that might be making you spend that unnecessary money. Do you really need that iced coffee every morning?
- Keep track of every Ringgit spent
This way, you’ll know where your money goes and whether you’re sticking to your budget. You can download budget apps like ?? for easy access to review your spending, but if you’re more old school, just write it down in notebook.