Aside from your savings, what else should you manage in order to obtain financial freedom someday? Actually, it’s not only savings and investments that you should prioritize. You also need to work on your expenses if you really want to become financially successful. Your income, expenses, savings, and investments play big roles in your success. If you can manage them well, it’s only a matter of time before you can reap what you have been sowing.
To effectively manage your expenses, here are some tips I have for you. Make sure to apply this in real life.
Sort your expenses first
The first thing you have to do is sort your expenses from the most essential to the least important. In this way, you will know which one to remove and which one to prioritize. Maybe you are finding it tough to get rid of some of your expenses since you are not sure which is more important. If you try to sort them first, you will get a clear view of what you should be working on. Our expenses are already there and it’s hard to get rid of all of them. Our basic needs such as food, clothing, shelter, tuition fees, and other essentials are impossible to remove. So, why not start with classifying them?
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Use points and cashback apps
This is another strategy that can help you save money. If you are using online applications such as Lazada, Shopee, and Shopback, you may want to utilize their promotions, discounts, and vouchers. But, this doesn’t mean that you should buy everything you want online. Just get the essentials—food, clothing, home accessories, diapers and milk for your kids, and so on. Almost all stores located in malls can be found in online shops now. Use your points. Use your cashback rewards. These points will help you finance your expenses in some ways.
Keep a journal and record your receipts
If you haven’t done this before, you should now. Keep a journal and record your expenses. After shopping for your groceries, don’t throw your receipts first. Take note of them and at the end of the month, summarize then get the total. You can compare your previous expenses to your latest in order to check if you have gone beyond your budget or if you are still spending within your limits. Keeping a track of all your expenditures will help you manage your finances well.
Think about living from paycheck to paycheck. I know it’s challenging enough to earn just enough to pay for your expenses. But, do you really want to stay on this level or you want to improve your life financially? If yes, then start managing your expenses well. Aside from getting rid of unnecessary expenses, looking for extra jobs, and closing your credit cards, follow my advice in this blog. I know for sure that this will be effective for you as it has a big impact on my expense management as well.
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