Wit and wisdom: Seven tips to manage your money

Whether it’s cutting back on extravagant dinners or skipping a vacation, it’s always a good idea to save money. With increasing monetary pressures in Pakistan, many families find it difficult to scrimp and save. But these tips, as compiled from money.usnews.com, can help you save your neck.

Track your spending



Begin with noting down every rupee you spend in a month.  Once that’s done, you start getting the feel of your expenditures, after which you can begin a monthly budget. Planning one may sound nerve-racking, but if you adhere to it once you’ve made it, it will save you a lot of time and money in the long run.

Pay with cash



Once your budget is done, put cash in envelopes for expenses, such as bills, fuel, pedicures and grocery. Spend the cash only out of those envelopes. This simplifies things because you have a set plan to spend a certain amount of money on specific things. This way, you don’t end up splurging.

Dine in, not out



Eating out is one of the main reasons behind wasting money. Expenditures, such as dinners at lavish restaurants or stopping by a bakery to pick up cookies or samosas can mess up your budget. Learning how to cook meals at home from scratch can help you set aside spare cash each month.

Get the best deal



Negotiation plays a key role in saving money and getting the best deal. You should not hesitate to or be embarrassed about asking for complementary products or services. For instance, you can negotiate room rates in case of hotel booking or ask for complimentary breakfast, lunch and dinner, and airport pick-up and drop. You will be surprised how much you can save if you just make an effort to ask or request.

Shop on Wednesdays



Since many grocery stores, meat markets, and clothes bazaars are not exceptionally busy on Wednesdays, you can get access to great deals and reduced prices. This means shoppers can maximise their savings while also shopping during a relatively less crowded time of the week.

Save electricity



Nothing sets fire to your wallet like an electricity bill. Air conditioning is a major contributor to the electricity bill for a large number of Pakistanis. Use the AC for an hour and then turn the fan on or open the windows for some fresh air. Also, most of us keep our electronics plugged in for hours or even days between the times we use them. This list includes TVs, phone chargers, toasters, Xbox and PlayStation consoles.

Create an emergency fund



When you have money set aside for a crisis, you won’t be tempted to use your credit card or go into debt. Everybody has the occasional emergency and if you are already prepared when it happens, that’s one less thing you will have to worry about during rough time. You won’t have to spend months or years paying it off.

Published in The Express Tribune, October 27^th, 2014.

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