Plan your Spending

[raaman]

If you feel like money is getting out of hand, you have trouble making ends meet, or you need credit to pay for certain everyday things, you may not have a good spending plan.

Therefore, your money gets out of control. Or, maybe, you live beyond your means, which never results in anything good. There are people who keep track of their expenses in an app, which is good practice.

It is because it allows them to know exactly where the money is going. But still, they can't control it. The reason is very simple: recording expenses does not help you make decisions before you spend.

 

[Abigael]

That is indeed very true. Recording expenditure alone does not help you spend wisely, budgetting does. So one should make a plan on how he/she is going to spend the money at hand. You can decide or whether to make a weekly or monthly budget, especially for everyday expenses such as food, airtime and maybe transport. For me, I prefer making a weekly budget to the monthly one. This is because a week is so easy to account for unlike when you do it monthly and experience changes on the way.

 

[Donkiz]

There are two types of expenses, one is planned expenses while the other is unplanned expenses. Planned expenses are things that you know that you will have to spend money on like paying for utilities, cooking, rent, etc, these can be budgeted for.

For the unplanned expenses, these are things that comes up suddenly without us planning for them, but because they are very important, we won't have any other option than to channel some funds towards taking care of them, these includes hospital bills, car repairs, etc.