Thursday, May 30, 2013

Frugal Or Miser - Which Of The Two Are You?

There is definitely a difference between a frugal and a miser. However, the line that separates them could be very thin. In this post, I will try to point out the clear distinction between the two.

Misers are branded as stingy by many. Stingy people have money which they do not want to spend for fear of losing all of it. Usually, this results from unwanted pains of previous financial difficulties. People who are plagued of such thinking deny themselves not only of the things they want but also need. Additionally, guilt is another thing which causes people to be misers.

There are some who feel guilty about having more than enough when their relatives and friends are suffering. In order to ease the guilt feeling, they simply do not touch their money.

The frugal, on the other hand, are known for their great money management skills. Unlike the miser, the frugal spend but they spend wisely. Also, they choose to make wise investments to earn more money which they can enjoy to save and spend at the same time. If you think that they do not have debts, you are very much right on that. This is because they are good in matching their finances with their goals and they do not compete against other people in terms of their possessions.

Tuesday, May 28, 2013

Top Three Tips On Budgeting Your Monthly Income

You may have heard this many times already but let me underscore it once more. They very key to managing your monthly wages successfully is to have a definite plan on how you are to spend every unit of it. In fact, it is best that you have your plans written to do every time cash comes to your hands. This shall keep you from giving in to impulse buying.

Start by having a list. List down all the expenses you incur on a regular basis. You may be surprised that some of the things you have in the list are expenditures which you can forego as they are not essential to your existence. 

From there, prioritize the important expenses you have to take. Examples of these concern foods, household utilities and education of your children. As they are your top priority, ensure to allocate funds for them first and foremost. You may have little money left in your hands by doing so but you have the assurance that your family will live in the days to come. 

Do you have debts at the moment? If you do, keep in mind to minimize interests. This can be done by prioritizing the ones with high interests for the interests not to keep on piling up. Also, refrain from incurring additional debts just to pay your current ones.

Sunday, May 5, 2013

Frugality Is The New Trend In Managing Money

My mom taught me about frugality. She introduced this to me in her own simplest ways.

She told me that we have everything we need at home. No need to go grocery shopping more than twice a week. All meals are planned as we follow a certain meal calendar, that way we can eat balanced meals and avoid unhealthy cravings.

When our neighbor's kids have new stuff, she always tell us that we can also have those if we are willing to work hard for it. She instilled the value of being contented with what we have. I even lived on a strict budget when I was in college.

Now that I am married, I remember everything that my mom told me and it really helps as we prepare to have our own family soon. Frugality is the new (maybe old, but it is definitely coming back nowadays) trend in managing money.

If we want to live a secure life and have some savings to hold on in the future, then we have to start now. We have to learn and find new ways to track our expenses, save money and invest those that we have in excess. Are you up to the challenge?