Thank God! Your payday has just passed for a week, but wait.. why is your bank account drained already? Where did the money go?
The truth is, the scene above might not be an uncommon problem happened to an employee. When you are unable to control your monthly budget, there are good chances that you will always run out of money no matter how big the paycheck is.
While in fact, one should not just spend his earning for daily expense, but also keep some savings for the future. Then the question remains: how can you save your money when it feels like your salary is never enough even to fulfill daily needs? Yes, you can, as long as you have the right budgeting plan. Below, we share some useful guides to manage your salary:
Control your living cost
First thing first, you should list out your living cost and make sure that it does not cost more than your budget. You should spend no more than 45 percent of your salary for household bills, daily meals, and transportation fare. If your living cost costs you more than the salary you earn, there must be something wrong your choice of lifestyle.
If this happens, you should find a way to tighten your purse. Not by skipping your lunch or dinner, but maybe you can try cooking your own meals at home or buy cheaper but healthy food. You should also double check the use of electricity, telephone, or internet, just in case you can still slim it down.
Save in the beginning
It is important to save some of your salary exactly after you receive it. Keep some 25 percent of it and pretend that it is not yours anymore. People often think that it is okay to spend some money for unimportant stuff because they still have some savings. But this is a misleading thought that needs to be driven away. You should keep in mind that the only condition when you can use the savings is during an emergency, such as when suddenly you break your computer or phone, unexpected layoff that cost your job, or some other unpredictable misfortunes.
Set up leisure budget
Being thrifty does not mean that you should sacrifice your leisure time. Nevertheless, choosing the right choice of leisure should be based on the budget. You still have 20 percent of your salary for recreational purposes and this percentage is more than enough. There are many low budget leisure options you can choose. For example, you can watch rental movies at home or do cheap exercises such as jogging and swimming. Arranging a quality vacation does not mean that you should go out of the town or have dinner at a fancy restaurant. However, if you think you need to experience something new, you can do it once in awhile after arranging certain budget for it.
Family and friend expenses
Humans are social creatures. Occasionally, you will receive invitation from your family or friend to attend birthday or wedding parties. As you cannot come empty-handed, you can use the remaining 10 percent of the salary for this purposes. Even when there is not such events, you can still use the money to share with your beloved ones, such as buying surprise gift for your mother, buying new chair for your parent’s house, or treat your close friends some drinks.