2.06.2017

5 Ways To Manage Your Money Better


     Actually, money looks better in your bank account than on your feet.
If there's one thing I've become obsessed with in the last few months, it's spending wisely. I've realised that I need to start taking money seriously, it doesn't grow on trees as they say. Now I have a savings account and I always put some money in there whenever I get my allowance but I've decided that I want to do more. So today I'm sharing with you guys the things I'm doing currently to manage my money better. And what better day to share this than at the beginning of the working week? Here's some Monday motivation for you!



PS: I'm just going to point out that I am in no way an 'expert' on financial issues, these are things I'm currently implementing for myself and I just thought it'll be nice to share! xx

There is rice at home
A few weeks ago I decided to look at my bank statements to see my spending pattern. To my dismay, I realised that I've been spending my money on food. Not even on clothes, books or makeup. Food! Not only is it bad for my waistline, it's making me broke too. I love to try new restaurants with my friends but it's killing my account balance so I've decided to reduce the number of times I go out to eat. I always tell myself now that there's rice at home (meaning= there's food at home). If you're in the same boat, why don't you try this? Limit the number of times you eat out. You'll save money and when you do go out, you'll appreciate it better.


Have a new zero
I actually learned this tip on Twitter and it makes so much sense. When your account balance gets to zero you obviously can't spend anything again (let's pretend overdrafts do not exist). Why not set yourself a new zero? It could be anything. £20 or 10,000 Naira. Once your balance gets to your 'zero', you stop spending. That way you always have some money just in case you really need it. This is quite tricky and it's something I find very difficult to implement but I'm trying. And so should you!


Use the 50:20:30 rule
I've seen different versions of this tip online but they all have the same underlying principle. 50% of your income should be spent on necessities (e.g. rent, food and so on) and recurring expenses (e.g gym membership). The rule states that 20% of your income should be saved and then you can spend the remaining 30% on whatever you want. I switched this around so I save 30% and spend 20% on what I like. I actually really like this one, I've been using this since last September and it actually works. This way I can spend money on things I love without feeling guilty because I know that I've taken care of everything else. I introduced this rule to my friend Daniella and she said it works for her too. 

This too is quite tricky. How do you know whether something is a want or a necessity? Obviously, your basic needs are food, clothing and shelter as a human being but it's never that simple. For example, I never know whether to categorise threading my eyebrows as a want or as a necessity lol. 

I do understand that for some people their income barely covers the necessities not to talk of saving or anything. I would suggest playing with the numbers, maybe a 70:20:10 rule?  You can change the ratios to suit your needs.


Have two savings accounts
This is something I'm doing at the moment, it's just to make my life easier. I have a long term/rainy day savings account and a short term one. The short-term one is to save for particular things I want while the long term one is more like just saving money for an emergency or future investments. Not anything in particular, more like a safety net. So this is what I do; when I use my 50:20:30 rule and save 30% of my income, 20% of this 30% goes into my long term savings account and the rest to my short-term savings account. That way, I know I can save for the things on my wishlist and at the same time save for my future. I suppose I could just leave everything in one savings account but I prefer it this way.


24 Hour Rule
We all know how awful impulse shopping is, doesn't stop us from doing it though. The next time you're tempted to buy something impulsively, wait for 24 hours. If you still really want that item a day later, then buy it. I don't know if it's just me but when I want something, I get really excited. If you wait for a day, chances are the excitement will wane and you'll be able to make a more rational decision. 

So, guys, these are some of the things I do at the moment. What are your money management tips? I'm always on the hunt for new ones, please share them with me!
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21 comments

  1. I love these tips! Especially the 24 Hour rule, my best tip is to just put my bank card away. Saves me so much money. Thanks for sharing xxx

    ALittleKiran | Bloglovin

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    1. Thank you for reading Kiran! Haha I don't think I could put my bank card away, I can't go out without taking it along! xx

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  2. thanks for the tips..
    I recently just wrote about savings too.. I guess its a necessity now!!
    https://becomingyeva.wordpress.com/2017/02/06/how-i-made-1-million-naira-extra/

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    1. a big necessity! thanks for reading Yeva, I'll check your post out! xx

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  3. The 24 Hour rule is new to me and I will gladly try it. I also just recently wrote a post about saving. Glad I came across your post.x

    www.stephylately.com

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    1. Aw thank you Stephy, glad you learned something new! xx

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  4. Thanks for sharing all those tips! J'adore
    come to check out my blog as well. Gros bisous
    http://gallech.blogspot.com

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  5. These are such great tips. The 24 hour one is so helpful. I've been employing it for the past year and it's helped me cut down on impulse shopping.
    xo
    Siffat
    http://icingandglitter.com

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    1. yass way to go girl! thanks for reading! xx

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  6. Does food count as want or necessity?? hahh. I moved off campus this year and am saving money on food, but then I use that as an excuse to eat out more, which is still cheaper than being on the meal plan, but if I don't be careful, I could end up spending more money instead of saving. I like the 24 hour rule! I guess it depends on what thing you got your eye on, but my friend and I use the 1 month rule. Which is the same thing, but 1 month :P I often use this for clothes. -Audrey | Brunch at Audrey's

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    1. Haha I think it counts as both. Yeah, it's easy to get carried away. Oh I love the idea of a 1 month rule when buying clothes! Thanks for stopping by Audrey. xx

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  7. Great post; I very much agree! Realised I've been spending way too much on food lately, I've had to reassess my priorities. Taking note of expenses does help also - it's self cautioning.

    Funmi x
    www.funmialabi.co.uk

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    1. Haha so you understand how I feel, spending money on food and all. Thank you for stopping by Funmi! xx

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  8. Awe I love this post so much Demi. Resonates well with me. I don't spend money on food actually. I hardly do, maybe junk? Lol. I love all the tips especially the ratio one. The "there's rice at home" is super hilarious tho. Lol. Thank you for sharing.
    Www.laitanbee.com

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    1. Aww thank you Laitan! Haha the 'there is rice at home' just came to me randomly . Glad you loved it :)

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  9. Having the Money In the bank still does not work for me. Investment or contributions to get back at the year is what I'm trying out.
    And If I have to buy anything.... it must have the potential to be sold out again after sometime

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    Replies
    1. Investing sounds like a good plan, it's something I need to learn more about. Thanks for your comment! xx

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  10. I got a shoutout! :D the rule does really work tbh, lovely post Miss Aina xx

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  11. I have two savings accounts too, I put proper savings in one and my 'spending on what I want' money plus any spare cash before my allowance into that, it's great xx Aren't you such a smart cookie x

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I read and appreciate every single comment. I'll definitely check out your blog. ❤

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