Slowly but surely.
TRACK, ADJUST, TEST, and AUTO SAVE
Income - Savings = Expenses
I believe that most of us had already seen this equation and would agree that this is the right way of saving for our future.
But sometimes it's really hard for us to know how much we can actually save from our income. So let me share an idea.
First TRACK your expenses for the past month. It is important for us to have a visual illustration of what we have spent. This will give us an idea on where we are overspending and what areas we can actually spend less on.
ADJUST - It's time to make a BUDGET. Look in to the expenses that you can actually adjust and set a limit. Start first with your discretionary expenses or the expenses that you have the choice to decrease or not spend on. If you have debts, then maybe you can also increase payment for that part. By doing this, you will be able to come up with your target savings. But wait! Do not set aside yet your target savings this coming "sweldo". You have to test your budget first if it's realistic.
TEST YOUR BUDGET - Just like going on a diet, it is not advisable to go on a crash diet and feel deprived. The consequence of doing this is you might end up spending more in the future. Try to live within your budget but do not deprive yourself. You still want to live a comfortable life. Test your budget for a whole month then compare your Budget to your actual expenses.
After testing your budget see how much is left after living a comfortable life and that will be your savings opportunity. When the next salary comes, that will be the amount that you can actually save first before before spending the rest.
If your bank offers AUTO SAVE, then you may want to enroll for that facility and set a date every time your salary comes. By doing this, INCOME - SAVINGS = EXPENSES may become a successful one.
Good luck!
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