how to control spending money?

Question

good means of saving money.

Answer 1

Very simple question. Relatively easy to answer. Challenging to implement.

First rule of Investing or Saving is "Pay Yourself First". There are now many banks in India that allows SIP. As soon as the paycheck gets into the bank, before you pay anyone else (including yourself), pay your Investment Account, as if they were a Payor. This is the best way to put money aside. There are lots of other things written by others, so I will not repeat the 'control your impulse to buy' etc.

Good luck. I have done the above for 20 years, and am very grateful for whoever taught me to Pay Myself First through Investments. I still do it every SINGLE WEEK. I have already taught my kids the same, and they are doing it out of their little baby accounts.

KKP_Investor

Answer 2

That appears for many to be one of the toughest problems to overcome. The main curse for many is the credit card. By pulling out the piece of plastic, they do not believe they are actually spending money. So the very first step for many is to stop using the credit card as a source of free money. If that applies to you, that is the first step.

The second step is to work out a budget to determine what the cost of your necessities are. Cable TV and cell phones are not necessities. Neither is Starbucks nor McDonalds.

After you have your budget, what is left over is your potential savings. When you receive your pay check put 50% of your potential saving into a savings account, not your checking account and do not touch it for any reason. The other 50% is your mad money. Do with it what you please. After you have accumulated, $2000 in your savings account invest it in a decent mutual fund so that it will be out of site and out of mind. Then start over with the accumulation process again. Think about establishing a Roth IRA account. The only problem with one is that once the money is in there it is essentually untouchable until you are 59 1/2. So it may or may not be right for you.

Answer 3

There are some great tips already given. The trick to saving and controlling spending is "visibility". In conjunction with the answers already provided, most personal financial planners would suggest you complete a detailed spending budget. Once you have done this, work out how much money you need to spend each week. Draw your weekly allowance as cash at the start of the week (get rid of all store and credit cards). Plan to do all your essential purchases first up in the week like food shopping, petrol and travel purchases to get to work, rent etc. Then, you know exacty what you have left to spend on luxury purchases like movies etc. because it all you have in your wallet.

Answer 4

The best way to stop spending your earnings is by investing. Invest in some asset and take a loan for the maximum for that property. In this way you have forcefully pay your EMI hence you will tend to spend with the money left with you.

But see that you have enough money to spend after you pay your EMI. Dont be a miser but try to save a good amount from your earnings.

Answer 5

JP Morgan put it best, " If you have to ask how much it cost, you can't afford it " . . . My own method is basicaly a no brainer . . . I learned at early at age the differences between wanting as oppose to needing. We all have a governing factor, mine is need, as oppose to want and the only thing one need's is to eat, as for bills, no one put's a gun to our heads, we make those, point being being i would use my last dollar to buy a doughnut and coffee rather than use a credit card so as to use the dollar to buy a lotto ticket. I'm one of thoes save for a rainy day types, i find that better than complaining when it's to late, i didn't have the money to buy an umbrella, and my credit card was maxed out . . .

Answer 6

1. Keep track where you spend your money.
2. Evaluate for its necessasity frequently.
3. Reduce / Stop unnecessary expenditure (like cinema, hotel, cloths etc)

Answer 7

Hello,

Understand clearly your spending patterns. Try to avoid spending on items which you do not regularly use. Keep a tab on high value items better still postpone buying them.

Thanks

Raghav

Answer 8

1) tightly budget your expenses and implement it month after month.

2) aware of life style inflation. urge to change gadgets, buy costly clothes etc.

3) avoid watching tv ads/ commercials.
4) shop in old style wholesale bazars and avoid going to malls
5) treat all salesmen/marketing people as your deadly enemies. run away from them

Answer 9

hi friend
after receiving your salary give it fully to your parents.thats the only way to stop over spending

Answer 10

dont keep much with u always and maintain a list of what u spend