Do you know how to manage your money, or to use it more efficiently? Currently, financial management is my biggest management problem. As I mentioned in my first blog entry, I like shopping and eating. Every month, when I get my salary, I will spend large portion of it in the first week. I don’t think too much; just spend it whatever and whenever I want. I also use credit card to purchase my needs. Due to the non-cash payment, I don’t realize how much money goes out o
f my pocket until I receive the monthly payment statement from the bank at the end of the month. When I see the huge payment, I don’t even know what I spend and how I spend that much money. So every month, when I first get my salary, I pay my monthly payment first, and continue to spend the rest of it in a same way as I did in the previous month. I know this kind of behavior is not good, but I it is hard for me to avoid it.
I remember in our first two lectures, Professor mentioned that management involves four basic processes: planning, organizing, leading, and controlling. Maybe I can use these four elements as a guide line to improve my financial management. First of all, in my planner, I start to write down every single purchase, including the snacks. At the same time, I organize things which I wrote down and record how much money I spend and how much money I hold on my wallet at the end of every day. This planner leads me to use my money more efficiently. In addition, it is better for me to control my behavior on spending too much money on some unnecessary things. I don’t know how this work, maybe it works and I will save much money in my accounts, or maybe there is a better way of solve this problem. If you are reading this article, if you have same situation as me, or if you have a better way of solving this small financial management problem, please feel free to let me know, help me out. Thanks.
f my pocket until I receive the monthly payment statement from the bank at the end of the month. When I see the huge payment, I don’t even know what I spend and how I spend that much money. So every month, when I first get my salary, I pay my monthly payment first, and continue to spend the rest of it in a same way as I did in the previous month. I know this kind of behavior is not good, but I it is hard for me to avoid it.I remember in our first two lectures, Professor mentioned that management involves four basic processes: planning, organizing, leading, and controlling. Maybe I can use these four elements as a guide line to improve my financial management. First of all, in my planner, I start to write down every single purchase, including the snacks. At the same time, I organize things which I wrote down and record how much money I spend and how much money I hold on my wallet at the end of every day. This planner leads me to use my money more efficiently. In addition, it is better for me to control my behavior on spending too much money on some unnecessary things. I don’t know how this work, maybe it works and I will save much money in my accounts, or maybe there is a better way of solve this problem. If you are reading this article, if you have same situation as me, or if you have a better way of solving this small financial management problem, please feel free to let me know, help me out. Thanks.
I have the same problem as you. Last year I spent over $10,000 and did not realize it until I did my taxes. I was very sad. So starting this month, I have decided to have a limit on my spending. So far, I have not doen so well. I went shopping twice already this month lol. I can't stop buying clothes. So I have decided to give my paychecks to my boyfriend so that I wont have the money to spend!! lol. He will be my personal bank from now on and will help me save the money. Maybe, you can also ask your close friends or family to hold on to your money so that you wont spend it all. Good luck! lol
ReplyDeleteWe have to learn how to manger our money.I always spend my money without notice. I like to buy new things too. I think the better way to stop wasting money, is saved the money on bank account. Go save your money immediately when you get pay from your job. If you want to stop swiping your credit card, I believe the best way is give all your cards to your parents. Parents always blame on us when we spend unnecessary money on useless stuff,they would like to stop us from using money. So, I hope these ideas will works.
ReplyDeletelol, after read this blog entry,i find out the second major problem that i am facing. i also have trouble to manger my money. Just as you, the moment i received my salary, is the moment i have to pay my credit card. i just spend way too much on the things that is not necessary. i will try the planner things that you suggest, hope it will work for me...
ReplyDeleteI think you have an amazing idea in writing down every purchase you make, because it really makes you realize what you are spending on. If you have a weekly log of what you buy, you can add up all you unnecessary purchases, and see how much you could have saved.
ReplyDeleteI also think if not being aware of how much you are spending is your problem, you should carry a small amount of cash with you so you are forced to be in control. Also, bring snacks from home, that helps you save a lot of money.
As you said I believe it will help out to write down your expenses to better manage them. One thing I would suggest is to have a limit of how much money you would want to spend within a month and then how much you would spend a week. For that you can try to track it for a while, and then you will know how much you have spent and then from there you can plan accordingly. I usually do that, like plan out how much money I can afford to spend in a week and then from there I limit myself from day to day. I have to say it has worked out so far.
ReplyDeleteOh..I once had the same problem as you because I also love to go shopping. In the past, when I saw something I really liked at stores, I did not care its price and if the thing was necessary or not. I would buy it without second thought. However, I gradually noticed that my room was filled with a lot of unnecessary clothes, handbags and accessories, and my money in the bank account was gone so quickly, so I knew I needed to control myself. Therefore, I started not to bring my credit card with me and just put the money I needed for lunch everyday, no extra money. And that helped me to stop the bad habit of wasting money.
ReplyDelete