Money Saving Tips To Increase Your Income In Ghana
When your liability is higher than your assets, your bank account will suffer. It’s quite unfortunate that people tend to love getting liabilities rather than expanding or increasing their asset’s. Consider to prioritize your asset’s, work well on it and grow your asset rate.
Asset’s are what brings money or has the potential of fetching you enough money in future and liabilities are those things you use your money(from asset) to buy or do which wouldn’t fetch you a penny but rather gives you scars of debt. For instance, one will buy an iPhone 12 pro max for series of dollars whiles his business is at the verge of collapsing. Examine yourself, liability and your asset. It is quite unfortunate that people tend have liabilities but they don’t have assets, you need to grow your asset before you acquire liabilities. If not, it’ll will only make you an independent person in the personal economic sphere. Below are money saving tips to help you grow your personal finance.
1. Separate want from need.
In order to adapt a money saving skill, you need and must separate your wants from your needs. Needs however, are those things inalienable. You must have them at all cost irrespective of your wallet balance and want from the other hand are those things which are less important and can be overlooked. You can make a a table containing the list of your needs and wants. Those you need to buy and those that will not have any impact on you even if you don’t have them. For instance, food is a necessity whiles making a stylish hair is just “wants”. Grow the habit of prioritizing those of your needs and wants.
2. Cut down utility to reduce cost.
The cost of utility bills are constantly on the rise. This increases expenditure day by day and adversely affect the positive growth of your bank account. So what do you do? Well, consider cutting down utility bills by disconnecting those items which are not necessarily demanding by nature. You can consider using a fan instead of using an air conditioner which consumes power and can cost your bank account to pay the bill. There are mostly unnecessary items we use in our homes that could have been done in other options. water is a very necessary commodity humanity can not live without. Essential it is and can not be replaced. However, you can consider washing the clothes with your hands rather than with a washing machine which consumes power a lot. Therefore, cutting down utility bills can go a long way to affecting your account effectively.
3. Spend responsibly.
Consider how you maximize your spending. Living opulently whilst your money is not up to standard can weak your account and lead you to personal bankruptcy. Maximize your cost of spending on unnecessary items or consumptions. Eating $10 pizza every weekend can go a long way of costing you $40 (Ghs 232) in a month. Likewise excessive expenditure on alcohol which can be controlled will definitely suffocate your account. Consider quitting the habit of being spendthrift to save the little cents to grow your account.
4.Save more than spend.
Learn to balance your spending and savings. When your expenditure is higher than your savings or perhaps no savings at all is very dangerous to your personal finance life. You should save more than you spend or balance them. The activeness of your account depends on the activeness of your savings, how wealthy you’ll become depends on your savings. You must crave to save the little amount you chance upon. Avoid saving money in your pocket or in your room, you’ll spend it without noticing. You should save in your bank account rather than the primitive way of saving money. You can have separate bank accounts including mobile banking, that’s linking your bank account to your phone for easy saving.
5. Calculate your earning and expenses
You should consider the amount of income you receive on daily bases, weekly basis and monthly basis. Compare your daily expenditure to your daily earning and same to weekly and monthly. Your earning rate should reflect your expenditure rate. Don’t earn, save to buy an expensive car whiles your business needs to be groomed to grow up buoyantly. Don’t go spending years of earnings to buy a car which wouldn’t affect your business positively.
6. Pay yourself first.
One thing you should consider first when you receive your salary as salary worker or receiving your dividends or returns as a business mogul is to pay your self. Paying yourself means set aside your savings amount before you think of any other things. Consider yourself not paid when you take your salary without setting aside savings. Consider it a crime for not saving any money after your returns. Paying yourself means enriching your bank account and this will go a long way to improving your personal financial life.
7. Don’t borrow or credit to build a liability
The easiest way to personal bankruptcy is borrowing to build or buy a liability. The potential of paying back is very thin. Liabilities don’t add money to your bank account, so if your borrowing purpose is to purchase or get a liability. Every liability needs money to keep it maintained all the time, combining the loan plus interest plus a liability maintenance. If your account is not strong enough, it will suffocate. Just imagine loaning to buy a house, luxurious car and any liability commodity. You’ll end up selling them to pay the loan plus interest if your savings ability is not strong enough. Simply stay away from debt and read more on money saving tips!
8. Save towards a vision
Don’t save blindly as a way of compiling your money in the bank rather save your money towards a craving vision. If you set for yourself a vision which you want to save for, it triggers your saving habit toward achieving your set goals as you read more on money saving tips. Rather than save to spend, I’ll urge you to spend to save towards your set goals. Setting goals and vision will help reduce extravagance and makes you economical for good.