Be aware of where your money is used: You should understand where each penny you spend goes. Note down each transaction you have, so that you can go over them and figure out whether there is anything you are spending large amounts of money on, (like clothes) and then look at ways to decrease that spending.
Budget: Create a budget for yourself and then stick to it. Settle on how much is used every month on bills, rent, food etc, and then create limits for personal objects. If you have a plan of where your earnings should go every month, you are unlikely to spend too much.
Set up direct debits: Create direct debits at your bank for items like bills, rent, and anything else that needs to be paid for each month. This way you are less likely to forget to make significant payments, and these payments will be paid each month leaving you with the rest of your salary that you have to spend the rest of the month on.
Save: Attempt to save something each month so that you have savings for occasions like Christmas or other such events. You can have a direct debit to a savings account, and in this manner something will get saved monthly when you get your earnings.
Have saving goals: Set goals for how much you want to save. You should try and have nine months of expenditure saved up in case you lose your job suddenly and need money till you find a new one. Set a goal and decide how much you have to save every month to be able to get to it, and then make sure that you set up a direct debit to ensure you reach that goal.
Don’t avail credit: Reduce the amount you use your credit card, especially if you have the cash for the purchase. You will end up paying interest on all transactions made via your card. Strive to make all payments through cash unless using your card saves you money (for example, through a promotion).
Pay all your credit card debts: Pay 100% of your credit card bill every month so that you don’t end up paying interest on the remaining balance next month.
Think of the worst case: When submitting an application for a mortgage, always plan on how you will meet the payments in the event that you get fired or if the interest rate gets higher. You should be aware of the worst case possibility when talking about any loans you have.
Read the fine print: Make sure you understand the fine print to avoid any hidden costs to what you are purchasing. Usually purchasing something using instalments means you wind up spending more than you would on a one-time payment.
Compare prices: Go around before you decide to buy anything. Look at different rates in shops and also online prior to buying something to ensure you are not spending more than what it would cost elsewhere. Make sure you never buy anything rashly.
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