What comes to mind when you hear the numbers 15 and 30, or 10 and 25? Payday, right? Those two days keep many of us motivated to go to work every day and happy to be an adult. However, would you be confident to claim you’ve been using it wisely by saving a portion for investments such as a future house, properties, or businesses?
For sure you’ve heard your parents say, “It’s not how much you earn, but how much you save.” At the end of the day, the truly rich person is the one free of debt and is not living beyond means. It is they who use their money wisely, at the same time, still able to enjoy the fruits of their labor. So, do you? If not, continue reading this article for more tips on how to save money after a payday.
Cleaning your purse
Once you receive your pay, dedicate at least one hour to clean your purse by removing all receipts and other papers. Count how much money was left from your previous pay and deposit it to your savings account. Next thing to do is to deal with the latest pay you received and know the exact amount of cash you have on hand. This lets you save while preventing you from thinking you have “so much” to spend.
Avoiding the malls
Strategically, shopping malls schedule huge sales and promotions on paydays. If you are serious about saving money, refrain from having a trip to the mall on that day or weekend. Unless you really need to buy something specific, of course. In that case, it would be smart to take advantage of the huge discounts you can get from sales and promotions.
Paying yourself first
Saving experts recommend allocating an amount of your pay to actually pay yourself. This is the money you deposit straight to your savings account. Doing this helps you make sure that you don’t live from paycheck-to-paycheck. After all, you don’t work just to have money to spend on things you wouldn’t like anymore in the next 2 years, right?
Always checking your payslip
This is one thing you should never be lazy to do. Always take time to check each item on your payslip and make sure that you were paid accordingly. The Payroll Assistant is not perfect – also the computer no matter how automatic your payroll system is – and could err from time to time. Always have a physical copy you can review.
Having an emergency fund
Once you’ve deposited money to your savings account, you have to consider it as a paid bill – something you’ve already spent and gone forever. You can’t touch it even if there’s an emergency! This means you need an emergency fund for unforeseen expenses such as home repairs and sickness. For a less serious example, let’s say you unconsciously gained weight and have to go to the gym. You can get the membership fee from your emergency fund.
Investing in a retirement plan
No one wants to work forever. Dedicating a percentage of your pay to a retirement plan can motivate you to go to work, knowing time would come you wouldn’t have to. Use the Internet to compare options and communicate to your financial advisor every money concern you have. Find someone you can trust and make sure that you understand all the terms and conditions clearly.
Limiting your spending
Sounds easy, but difficult for everyone. Especially if you work really hard and feel you need to reward yourself, right? Well, you have all the right to enjoy your money – just be sure you limit your spending and do it wisely. Avoid using credit cards as much as you can. Also, tell yourself smart people do not purchase something only because it’s the trend or they were pressured by their peers.
For a moment, you may think these tips are common knowledge already. That they are basic, impractical, or even all lies. Before you turn your back though, why not try to follow at least 3 suggestions first and see if it would work for you. Saving money has always been personal and different for one person to another. All it takes is discipline and a few times of declining your friend’s invitation to east Samgyupsal, or the daily temptation to buy milk tea.