Many of us may face this frustration where we do not have much money left before our next pay day. How come some of us are good in savings while the rest overspend? Do you want to avoid this frustration again in the future where money is always not enough?
Then it is time for you to look into budget analysis, otherwise commonly known as budgeting. It is advisable for you to take a note of your expenditure everyday, mainly in the five categories – family expenses, family overheads, personal expenses, taxes and luxury items / holidays.
Next step is to identify which expenses are the ones that is not necessary or which expenses you can reduce. For example, some loved to spend money on high end items. Instead of buying high end items, how about those which are of lower prices without compromise on the quality? Some of us love to go holidays frequently. Instead of going frequently, can you cut down on the frequency? Some of us love to buy the latest electronics gadget, Instead of keep buying the latest electronics gadget, can we continue to use our existing ones which are still functioning well?
There are many apps out there where you can keep track of our daily expenses. It is a good way to do budgeting but you must have the discipline to do it everyday. Else, after a while, it is back to the square one where you overspend again.
Another way to ensure that you have savings every month is to open a few savings account in the bank. One account is purely for savings for the future, one account for family expenses and overheads and one account for personal expenses. With different accounts, it will create a discipline in you so as not to overspend and ensure that you have savings every month.
Once you done your budgeting, then it is time to re-look into your existing insurance portfolio to see if you are sufficiently covered for your future. Should any unforeseen events happen such as critical illness, disability or even premature death, is your insurance payouts sufficient to pay for the expenses continuously for a period of time and how long can it last, given that inflation rate keeps rising over the years?
Is it time for you to review your existing policies now? It is better to make sure that you are sufficiently covered now than to regret when something happens.