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Investment

Ways to get your spending under control.

Ever been in a situation where you can't figure out where all your money has gone? (especially right after payday?)There are many people who can relate to this. Why? Electronic payments. Electronic payments separate us from our physical cash.We don’t really see our money, so we can’t determine the amount that we are spending on. Thanks to online shopping , who needs cash now to buy anything?Don't let that spiral out of control. Make your money work for you. and not the other way. Here are a few tips on how  we can take control of our spending 

Find out where your money goes

You should learn how to track your money, and how much you are spending on certain things. With technology there are budgeting apps, like Mint. (free, too!) available for your phone where you can keep track of all your spending  Keep records of your spending for several months to see the amount of money that is going in and out of your account. You will be suprise. It does takes time and discipline but knowing exactly where you money is going is going to help you in the long run.

Set up a separate bank account.

You should set up at least 3 different bank account, so you can monitor your spending. The first bank account would be for all the important monthly bills, for example electric bills, phone bills, internet, mortgage, car payment, and insurance. This is a  designated savings account  for your retirement and/or college funds. This account should not have a debit-card attached or even cash access to this account.

For the second account, designate it as the "daily expense" account. Things like groceries, shopping, eating out, petrol and entertainment. The amount that is place in this account will be determined by what you have learned from tracking your expenses. This is the only account that has a debit-card or if you need a credit card, get a card that gives you cashbank rebates like HSBC or Hong Leong. ( Check out which bank provides the highest cashback here)

The third account is for the “Major expense” such as vacations and medical bills. Think wisely about how much money you should fund to the account. The expense might be unpredictable, so always think about contributing a little more into the account. When the time comes to use the money, simply transfer it to the second account.

Learn to live within your means

Being discipline is the most important thing.

Make sure that the spending is being spend mostly with debit-cards and cash as it will  be easier to track.  Wheh you use your credit card, always pay it in full to avoid extra charges and while it's tempting to buy that newest gadget or bag on credit, think twice. 

Try not to spend on things that are not necessary. If the funds are running low compromise on the things that you are buying. For example, if you are running low on your funds to spend, be creative and cook your own meals, invite some friends over and have a feast at home instead of running up a bill at a fancy restaurant.

Change that mindset

Besides being discipline, you need to develop and nurture a healthier attitude towards your money. You need to change your mind set about spending on things that are not necessary unless of course you have saved enough for it. . When you choose to not buy something,  you are simply choosing a different purpose for your money.

Get your spending sorted and manage them properly by always settling all your pending bills and take advantage of credit cards that provide you thousands of Ringgit in cashback. Look for the highest  cashback rebate comparision them at GoBear