The Morning and Evening After

A most common predicament among salaried employees nowadays is that after a payday, they do not know where their money goes. The date of the payday varies; sometimes its mid-month and end of the month, other times it is just once a month. Almost always, the employees feel that after their salaries come, the money just passes by without them having to hold them for a long time or even savor the feel of having a large amount of money at hand. With this in mind, maybe we can try to find out where your money goes exactly.

Credit Cards. This is the very first and foremost place where one should look for their money, which is their credit card statement. Normally and ideally, every person should have only two credit cards, one Visa and one Mastercard. More than this number of credit cards is considered an unnecessary expense. Aside from paying the annual fees and your card is more than two, you will end up paying more than your actual budget. To stay within your budget, it is advisable to have the total credit limit no more than two months of the net monthly salary. In this way, the amount that will be owed stays within a manageable level and can be easily paid overtime. Finally, credit card companies increase your credit limit especially if you are a good payor and without your consent. It is better to bring down the credit limit as two cards with high credit limits is bad as having several cards with very low credit limits.

Unpredictable Expenses. There are those incidental purchases that we make each time we go out like parking fees, buying of clothes, equipments, gimmicks, gadgets etc. and we never seem to keep track of these expenses. The simplest way to go about minimizing these kind of expenses is through planning, rather disciplined planning. The budgeting method is very useful here as funds can be properly allocated in a rational way and sudden shopping impulses will not be allowed. Control of our behavior on purchasing can be seen.

I hope this post will help you in a way especially in these times of worldwide crisis.

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