Tip # 2: Spend less than you earn
Okay, so I realize I’m doing it backwards here. Tip#1 was to deleverage before you invest, but before I have enough money to deleverage and invest, I should first learn this golden financial rule, which according to other financial gurus and common sense, is the basic building block to bajillionairehood.
The fact that I am struggling with credit card debt shows that I haven’t been practicing this yet. Actually, I have been relatively quiet in this blog over the past few weeks because I was doing the opposite of this rule – not following my budget, raking up credit card debt again, and yes, spending more than what I earn.
Discipline. Yes, that’s what I lack. Especially when I see the “SALE” sign on a store window. And discipline is the foremost thing you need to follow this rule. Thus, I’m going to take some extreme measures again to control my spending:
1. Snip up my credit cards
2. Write out checks already for my budgeted credit card payments
3. Open a bank account with a larger maintaining balance so I don’t touch the money I intend to save
Dear Lord, I need help!
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jetskee,
Hang in there!
- Don’t go window shopping
- Always go to a shop or supermarket with a clear list of things to buy.
- Don’t go out when your hungry.
- If your friends asks you to hang out, you can refuse and ask them to come to your house instead, or at least choose a neutral place that is not the mall.
- In my case, it was the eating out, take aways, and other convenience food that is very expensive.
- In my experience growing up in Indonesia, there are always very cheap recipes that are both fulfilling and healthy.
- Have you stopped smoking yet
Hi Ismangil, thanks for the encouragement! I know what you mean about the eating out – they seem small by themselves but when I add up all my eating out expenses in a month, they’re pretty hefty too.
This week, I did as much work as I can at home so I didn’t spend much on the usual transpo and eating out. =) Hooray!
And no, I haven’t managed to quit smoking completely yet, but I am trying. I manage to go on for 3-4 days smoke-free, then back again, then quit again…. much like my spending control. Hehe.