Wednesday, July 7, 2010

How To Handle Money

In this promiscuous life, we all have necessities in order to survive. We have to pay our bills like electricity, internet service, cable television and so on and so forth. On top of all these, we need food to eat as well. We can go on and on with our every day needs. The question would be-How do we sustain these needs? What do we need to pay our bills? How about to buy our foods? I believe there is one answer in our mind. MONEY.

Most of us worked so hard to earn money. Especially for those who have depended. I, for one, included. Unfortunately, less people worked as hard to keep that hard earned money. In most situations, money just passes in our hands. Once we receive that pay check, the next stop would be paying those bills and debts. We end up scarce and we hopelessly wait for the next pay check.

Some may be luckier to have a higher pay. However, the more pay we got, more expenses kept on coming in. So, with this situation, how do we work as hard to keep our hard-earned money?

First, let us analyze and classify our expenses. Which among these expenses are necessities. Which among these expenses can we not do without? Which are just a tingle of self-gratification? Last month, I note down each expenses I incurred each day. These expenses were categorized as "transportation", "Cable", "Food", and so on. I realized that I spent significant amount for food expense. The food expense I am referring into are those expenses I incurred from eating to different restaurants, malls, chocolates and junk foods. These are not even the expenses intended for every day viand. When I went to the details, I realized I spend an amount that could have sustained me for two days in just one sitting in a fancy restaurant. And I asked myself "for what"? Deep inside the answer is only one. Instant gratification. Is it worth it? If we will really analyze and think about it, we may have spent so much for the things that we do not really need. And we may had spent so little for those that we really need.

Second. Let us save an amount on a regular basis. We are accustomed on this formula:

Salary - budgeted Expense/Bills = Future Savings.

How about changing the formula a bit? Try this:

Salary - Future Savings = Budgeted Expense/Bills.

I know it is hard, One might think it is not feasible. But then, think about this. If our primary source of income will not cover everything after analyzing the "real" expense, then how about a part-time work? With great demands nowadays, may maintains two jobs.

I suggest we start thinking "How can I multiply my money?" instead of What will I buy with my incoming money?"

I wrote this article last Dec,09 and had been published by Triond.

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