Saturday, September 18, 2010

Control your money rather than being control by it

Are you are lured to buy thing that we do not need at all due to commercials, peer pressure, forced selling or impulse? Do you buy things without checking your bank balance? Do you always maxed out your credit cards and started to have debt?

If your answers to the above questions are “yes”, your finance is likely to be out of control and unmanageable. You are more likely to be being control by money. You will start to have fear when you do not have enough money to sustain your life. More fear will come when your debt grows into a huge amount that you are not able to pay up for monthly payment.

Taking control of your money involves a few things:

1)Knowing your expenses on necessities.
Listed down all the necessary expenses that you need to pay in order to sustain your lifestyle. Make sure you have allocated enough money from your salary to pay for all these expenses.

2)Knowing your debt/loan and monthly payment.
Listed down all the debts that you have which includes mortgage repayments. Make sure you have allocated enough money from your salary to pay for all these debts.

3)Knowing how much you can afford before committing to buy anything that you want.
Check how much salary you have left after minus off your total expenses and debt payments. Do not spend more than what you have left on anything that you want. If not, you are into getting yourself more debt.

Remember this point; financial fear can only be eliminated if you start to take control of your money.

1 comment:

BetterSaferEco-friendlier said...

Just now I mentioned to a friend that she probably won't noticed much difference when my income doubled. I should be still staying in my 3 room HDB, still not wanting to own/drive a car in Singapore, likely will still be riding that my >1.5 decade old bicycle.

Have you started your journey towards financial freedom?