Are you tired of getting broke?

Are you one of those who experienced PAYFORIA? It means that you feel so high after you get your pay and you are too excited to spend them as if you are a one day millionaire.. Well, honestly I am just like that before and I always ended up spending more than my pay can handle. I was able to survive by constantly using my credit card which only worsened my financial situation. How I changed? Very simple... I just got tired of getting broke.

I had a changed in mindset then I started to have a strong urged of constantly saving up some money no matter how small it is. I started to became more motivated after seeing my savings was gradually building up. Then it became a habit which give me a sense of achievement.

Here are simple ways on how to avoid getting broke:

1. Write down all your expenses

This may sound tiring but it is a great eye opener. You will see where your money goes and might be a

shocked to see that so much of it go to unnecessary expenses.

2. Group your expenses

Identify your fixed and variable expenses. You can only control the variable part of your cost. See

which one can be reduced or even eliminate.

3. Forecasting your surplus income

Deduct your budgeted expenses against your fortnightly income to determine estimated surplus. Put a

buffer in case of unexpected cost or a bit of overspending.

4. Set up your fixed savings

Set up a savings and disbursement account to avoid getting tempted of spending your savings. If you

can request your payroll department to deposit your salary to two accounts will be much better. Otherwise you can create an auto transfer from your disbursement to savings account. Your formula should be Income minus Savings equals Expenses. Anything excess on the disbursement fund will be your emergency money.

5. Do not use your credit card

Avoid using your credit card because the process of using it is very enjoyable but realisation of burden

only comes once you get your monthly statement. Use your disbursement debit card or cash. You will

surely control your spending once you see your disbursing account is getting depleted faster than what you plan.

6. Delayed gratification

I know that we want to reward ourselves from time to time since we really work hard to accomplish

something. But be mindful of spending. If you think that you are not yet capable of acquiring what you want then delay the acquisition.Spend when you have enough surplus from your disbursement account.

7. Don't get tempted of On Sale and Limited Time Only

Simple principle, if you don't need it don't buy it. Buying something on sale if not needed is not a

saving.The limited time only is just a buying trigger so better be aware of it.

8. Think of the future and not just the present

Remember that our life is a long ball game. We need to be able to sustain our lifestyle and avoid

digging our own hole. Time will come when you don't need to worry about money. And we can only achieve it by aiming to build passive income as early as possible. Relying on one source of income will not be enough for us to a comfortable retirement.

I hope that you find this blog to be helpful. Looking forward to share more on my future posts.

Cheers

Rhoda