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Please help! I have this bad habit of spending more than I should ane end up with an empty pocket. But when I go out of home, I cannot resist myself. It maybe something to eat, or whatever article I like.

2007-03-25 17:43:23 · 33 answers · asked by sweetheart 2 in Business & Finance Personal Finance

33 answers

Use cash after you have paid all your other bills first!

2007-04-01 14:14:37 · answer #1 · answered by Amadeus 2 · 0 0

It's never late starting to save for a rainy day. Try this, open one more savings account in your name. Set up a recurring transfer every month (choose the date like 3 or 5 etc, make sure it is couple of days after your pay date), that recurring transfer will send 10% or more of your take home salary to this new account.

Most important thing, never carry the new accounts debit card with you. Keep it in safe place. This cultivates the habit of saving as well not allowing you to spend too much.

Besides, if you are a guy who can take tough stance, then take atleast 2 of the below, personally I'd recommend you to opt for them
1) Buy a life insurance and opt for monthly/quarterly premium
2) Build your nest egg (buy a pension plan) again with monthly/quarterly premium
3) Sip away a good MF. There are plethora of funds to choose from. Do your research, pick an MF well diversified portfolio (avoid sticking to a sector) and opt for SIP route.

Let's say if you earn 100 rupees a month, put 10 in savings account, opt for any of the 2 or all of the 3 above points and you will end up spending another 20 on them.

You are left with 70 rupees in your hand, then there are fixed expenses like rent, utilities etc. After that whatever remains in your hand, it's your choice to spend it. And do spend it, after all what's life worth, if you cannot spend a little for yourself.

Hey before I wind up, do some yearly charitable contributions to known trusts. Remember it's in giving that you receive.

2007-03-28 15:05:29 · answer #2 · answered by sachintel 2 · 0 0

First, try to cut your spending: call your credit card companies and ask for a lower interest rate or try to get a low interest rate transfer balance deal (Chase offers deals with no balance transfer fee). Talk to your landlord about getting a reduction in your rent, sometimes you can offer services (such as painting the walls) to get a rent decrease. If you own your home, see about refinancing for a better interest rate.

Eat out as little as possible and don't go to snack machines or buy sodas at convenient stores. Cut your cable and home phone line, get a cheap cell phone plan instead, do without the cable/movie going until you get financially fit. Shop at thrift stores for clothes and housewares instead of the mall or specialty stores. Look at ways to cut spending by creating a budget and sticking to it.

Ask your boss for a raise, put together a good argument as to why you deserve more money. If you don't get a raise, start looking for another job that will pay you better. If you do all these things, you should begin to have money for savings and eventually stop living from paycheck to paycheck.

The best savings account would be emigrantdirect.com . They're currently paying 5.05% interest with no minimum balance and no fees. Check it out to open up an account. Best wishes!

2007-04-01 06:07:37 · answer #3 · answered by Luvly 3 · 0 0

dear friend


- plan.
- Make a budget of how much you want save each month. Keep it aside. Start with a small amount to begin with.
- Then chart down your requirements each month. Now this is tricky. Don’t say that new clothes and new shoes each month is your requirement its not. So requirements are the basic necessities like food, any bills like home rent, phone bill etc. these are the ones that you have to incurr in any case . come what may and you have to make these payments or spend here.
So minus your basic expenses from the total income in hand. Then minus the saving amount. Then what you are left in hand is what needs to be played around with. This is the money which is of concern to all of us. We all face the same problem. When this exceeds its limits then we eat up from the savings account. So do not do the same. Out of this amount, keep a cushion for your self like – plan … a dress every 4 months , a nice lovely meal in a great restrau once a month etc. plan and step forward to make the expense. It will not pinch you much trust me. Even if the whole amount is lost, it will not pinch you , provided you have KEPT ASIDE THE AMOUNT YOU WANT TO SAVE EACH MONTH. Keep on increasing this saving amount month after month and gradually you would become cash rich !!

2007-03-30 01:08:06 · answer #4 · answered by RASHI 2 · 0 0

First of all, I would get rid of whatever it is that allows you to spend more than you make. (Cut up those cards if you have them but don't close the accounts in order to help your credit.)

Also, if you could change the way you think about money---I went from your situation to focusing on saving after reading the best selling book "Automatic Millionaire." It has helped me tremendously for I too was in your predicament. The book suggests you set up your accounts to where money gets automatically deposited into (savings accounts, Roth IRA's , etc.) The premise is that budgets don't necessarily work. Have this money disappear beforehand and the rest is yours to do what you want. I have invested a lot this way and it keeps me out of stores as my bank account is nearly empty. lol! However, I feel secure and better about my finances knowing I have money put away for emergencies and retirement. Try it; it works!!

It will make you feel gratified and will really help you change how you think and feel about money.

2007-03-31 15:48:27 · answer #5 · answered by imcurious 3 · 0 0

try keeping a journal of every single thing you buy for a week. You wll then be able to easily see where your money is going and then you can make decisions on how you really should be spending your money, or not. Also try not to carry large amounts of cash, and do not use a debit card. Before you bring an item up to the cash register take amoment to reflect. Ask yourself a few questions: do i really want this? what will I use it for? Will I use it often, will I get my money's worth? It this a good value, meaning is this a good price for the quality? Most importantly do I need this, or is my money better spent or saved elsewhere?

2007-03-25 17:55:18 · answer #6 · answered by SZ 3 · 0 0

Only take enough money along for what you actually need to buy. No more. No matter what.
Don't allow yourself to indulge in 'window shopping'.
Consider the other suggestions in :

Young People Ask...

Should I Have a Credit Card?
- Counting the Cost
- Responsible Use of a Credit Card
- Enjoying the Benefits
- The Value of Parental Consent
http://www.watchtower.org/library/g/1999/12/22/article_01.htm

2007-03-25 18:14:16 · answer #7 · answered by Anonymous · 0 0

Make compulsory savings by way of investing in mutual funds in (SIP) Systematic Investment Plan by giving auto debit to your bank account equal to 20% of your monthly income.

For few months it will be very difficult. But once you accustom for 80% income ( Income - 20% savings ) it will be easy.
If you followup your savings growth regularly you will be surprised how your money starts earning some more money. Over a period of time say after a year or two, you feel like to increase your savings by observing it growing into a big amount.

2007-03-31 07:07:56 · answer #8 · answered by arpita 3 · 0 0

Follow the steps;
1. Determine total credits in your account.
2. Start a Recurring deposit plan, Systematic investment plan of a mutual fund for 30% of the inflows.
3. Invest 25% of the balance inflows in tax saving instruments, diversified funds.
4. Indulge or splurge the rest

2007-03-26 20:00:10 · answer #9 · answered by Santosh 3 · 0 0

You really have to stop are your debt is going to be out of control and the next thing you know , you will be 25,000 in debt with no means to pay it back. Bankruptcy is hard to do now a days and ruins your credit for years. You have to ask your self if its something you want or if its a need buy. Stop overspending, its a sickness darlin...years can go by and your debt will be high and your future not planned out.
You need that slap in the face to snap you out of dream land and into reality!! Good Luck!!

2007-04-01 04:52:27 · answer #10 · answered by Pepper 6 · 0 0

Start a recuuring account with bank which is paid at the beginning of the month of about 20 % of your take home pay. Once it matures, put it in fixed deposite. It will curb your habit and you will have good amont as and when needed.

2007-03-25 18:11:50 · answer #11 · answered by Shemit 6 · 0 0

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