The Art of Saving Money On A Budget for Dummies!


Optimizing your savings using minimal funds and common sense!




The financial art of war can be best described or depicted as a life-long battle against the threat of personal insolvency in the quest towards financial freedom. The real trick or secret recipe to attain financial independence is to free yourself from the shackles of personal insolvency, as well as from the doom and gloom of economic recession. It is never too late to start budgeting, and to learn the tips and tricks on how to save more money. Familiarizing oneself with the ropes and rudiments of financial management is also an ideal way to begin. One of the core principles of wealth creation advocates a passive income but abhors an exorbitant expenditure. For those with little or no financial knowledge, having money in the bank alone is insufficient. Here are some fool-proof ways or methods to track and manage your finances when you just do not have sufficient money to begin with.




Take the proactive role


The last thing you need is to get an urgent call from your bank or creditor chasing for repayment. For starters, you could call up your bank personally to clarify your existing situation in order to obtain a clearer picture of your current financial health. Once you obtained your financial bank statement, it may be a little too late to traverse or maneuver your predicament. Sometimes a little courtesy on your part goes a long way towards appeasing potential creditors and negotiating the terms & conditions of one’s repayment. Legal claims and law-suits should be the last resort as they represent the journey of no return towards insolvency and bankruptcy. Always try your level best to sort out all outstanding financial issues and claims prior to going to court. As you might be aware, court cases are often cost prohibitive. There is also no guarantee that your case will prevail in your favour. So always take the proactive approach whenever the going gets tough!




Prioritize your savings


Make your daily life your primary priority. Make your bank account your secondary priority. Put your bare necessities ahead of your extravagant luxuries. Spend your hard-earned income on the absolute essentials and save up the rest whenever you can. Put food on your home table; pay your utility bills; repay your loans and mortgages. But remember to also settle all your outstanding debts consistently and punctually as well. It is deemed appropriate to have a modest amount of savings in your bank account to shield or shelter you during those unlucky rainy days. Provided you possess a sound financial plan or ample savings in your account, it is due time to start saving now. A regular but uncompromising savings plan can save you during hardships and also serve as your financial back-up during emergencies. Having a proper savings account can be a life-saver as it doubles as a back-up contingency plan. Plan your expenses wisely and budget your expenditure daily to reduce wastage as well as curb extravagant spending. Always have a proper long-term budget by putting greater emphasis on practical or pragmatic short-term goals. It is better to save a dime than to owe a fortune!




Payment in cash only


More often than not, credit cards are a godsend for spendthrifts who love to splurge on shopping, but dread to carry bundles of deadweight cash. The sheer convenience of credit cards stem from an oversized credit facility and their ease of portability. They do come in handy when you are short on cash, however, they are prone to misuse and abuse. It is no surprise that many Malaysians often overdraw their credit cards to the point of being unable to repay their debts. To curb excessive credit card usage and overspending, always make a salient point to pay for your purchases using only cold-hard cash whenever possible. So unless you want to overwhelm your personal finances with a mountain of debt, choose the wiser and more practical option of payment in cash. You will save yourself a ton of headache and heartache when your bank account is depleted. At least you do not have to contend with debt collectors who come looking to seek payment!




Optimize your income


The idea behind having a steady stream of money is managing your savings or budgeting your income and expenditure well. Having a priority savings account or a fixed deposit account may save your skin later when you need money the most. Investing your savings in unit trusts and other financial plans may also help you weather the storm. Having a personal insurance scheme or starting your own personalized trust fund might also be of assistance in the foreseeable future. You could even sell off some of your prized possessions or tangible assets to raise cash. You may take up a second job or seek temporary employment to support yourself through lean financial times. Whatever decision you make or approach you take, you can be certain that it is often better to take any action than to remain idle without progress or improvement. The key to any successful savings is pure grit, true focus and unbridled discipline. When push comes to shove, action truly speaks louder than inaction!




Planning a new budget


More often than not, the best-laid plans can sometimes save you from sudden havoc or untimely disaster. Abrupt changes in one’s seamless life can throw up your most meticulous plan. Even the best-laid plans do go awry. Frankly speaking, creating a budget takes enormous discipline in cutting down on unnecessary expenditure. During dire financial times, it is advisable to tighten one’s belt and to curb excessive spending. Keep tabs on your grocery shopping as well as other miscellaneous spending. Getting back on the right financial track when you are dead broke is truly an uphill battle, and a seemingly impossible challenge in one’s quest for financial independence. Instead of whining and procrastinating, perhaps the time is ripe to take positive steps and practical measures to overturn your financial dire straits. You may procrastinate now and fill your life with regrets later for not having a real budget. Or you may take to task and make the best use of your hard-saved money. Ultimately, the choice is yours and yours alone, truly!