Are you any good when it comes to saving money? If not then this is an article which may help you out and hopefully improve the way in which you handle your finances. I have always been terrible when it comes to managing my money which is why my very good friend Tatiana Regan was able to help me out and get me back on track. Tatiana Regan is my closest friend and someone who always seems to be on top of her finances. Here is how Tatiana manages her finances and how we should all be managing ours.
Tatiana will alway fill out a monthly budget at the beginning of each month. Within this budget she will write down how much money she has earned and then write out what money she needs to pay out during the course of the month. Whilst most of this stays the same regarding rent or mortgage etc. there are a lot of costs which only occur every now and then and her budget is what helps her plan well for it.
Tatiana Regan will often tell me that you cannot stop spending money if you don’t know where you are spending it in the first place, which is why she always tracks her spending. Generally she likes to use an application which she has on her phone, which lets her update every penny that she spends and then gives her a detailed breakdown at the end of the month. In some cases all the app requires is for you to scan your receipt and it will automatically add it to your spending. Tatiana is able to review her spending with detailed metrics and this can help her reduce her spending the following month.
10 Second Rule
The 10 second rule may sound slightly bizarre but it is something that works very well for Tatiana. The idea is that when you are in a store and you see something that you wish to buy, you should pick it up and hold it in your hands for 10 seconds, and seriously consider whether or not you need it. As Tatiana says you will find in most cases that you put the product back on the shelf, saving money and avoiding making knee-jerk purposes.
Another great tip that I stoke from Tatiana was the way in which she approaches her savings and it has really helped me out. What Tatiana does is to pay a certain amount of her salary into her savings account each month. Whilst this may not sound different or revolutionary, the point here is the way in which she approaches this money, sending her to her savings account as though it was obligatory when of course it is in fact a choice which we can decide upon. In treating her savings money like this she pays it every month without fail, in the same way that you would your rent or your utility bills.