You won’t be too wrong if you say human existence revolves around money; our everyday life involves getting money, spending it and making it back again.
That being said, there are certain money strategies that would still be beneficial to our lives even at this time and age, and I’d share four of them.
It’s funny how it was easier as children to have a budget, and now as adults we live our lives as if money falls from trees. Children who went to a boarding school had to write a plan detailing how much is going to be spent on certain things that they are going to need; they would make a list of all they probably need which would be evaluated and trimmed by their parents. Having that plan or budget of where our money would go to is not still a bad strategy even to this day. Divide your salary into three distinct parts, detailing how much you ought to spend on your needs and then your wants and how much you ought to save. This would give you a guideline of how your spending habit ought to be.
2. THE ENVELOPE SYSTEM
This system involves placing the required money for each action into an envelope. For example, place the money designated for groceries into an envelope marked grocery, and do the same for others. This would help you live according to your budget, and help you know when you exceed the budget.
3. THE PIGGY BANK
The best time to teach one how to develop a savings culture is when they are still children. Buy a piggy bank for your kid, and have them save regularly, and keep records of how much they save. The best way to motivate a child to do this is having them save for something; probably a toy or anything they fancy. This would be a valuable life lesson for that child.
4. AUTO BILLS
Paying bills can be annoying and boring at the same time, but you cannot deny that it’s extremely important. In order to have an organised billing system, one strategy to imply is the automated billing system, where the bills are deducted from your account without you having to move around. Annoying as paying bills might be, this system would definitely save you the stress and save you time, and also help you develop a habit of paying bills on time.
These four money systems might be simple but you cannot doubt its efficiency.