Managing my finances

At 23, having two-digits to my bank statement does not bode well for me, especially since I do not have any loans or credits to pay for. Some say it doesn't matter because within a few months into the working force, I will easily accumulate three to four digits of savings. But I would very much prefer to be steadfast in my own conviction. If I have trouble even managing this little allowance in my hands, what would make of me when I start to earn more.

Simply put, I have difficulties in managing my finances and lack the discipline to control my expenses. That came out a lot easier than I expected, ha ha

Hence, I have devised a plan to better manage my finances. I am not saying that everyone has to make such a conscientious effort in planning. For the better few of us who have the luxury to be more lavish with their expenditures, be thankful :)

1) Decide on what is a need vs a want.
Weekly catch-ups over starbucks is definitely not a need. More than half of my material possessions are wants. A laptop is a need, but a Macbook laptop is a want when I can easily make-do with a normal Fujitsu/Acer. And once you have identified what are the items that fall under the 'wants' category, start to reduce the desires for these items. For me, I have decided that I will stave off Starbucks for as long as needed. Abstaining from starbucks for a year could easily save me up to $1000. It may seem little, but every little bit counts. It isn't easy, but I must try.

2) Calculate your expenses.
I can usually keep up with these calculations for at most 3 weeks. Because I part with my money so easily that it gets tiring keeping up with my expenses. Be meticulous about your records. From the one dollar you donate to those students at bus interchanges for their flag-day CIPs, to the hundreds/ thousands you spend on a branded bag, record them down. Do not think lightly of the cents you dispose of because little things accumulate to make big differences.

3) Be wise about your spendings.
Know what is your weakness, for instance, shopping, or eating at restaurants. When you know that you cannot control your expenses in particular aspects, bring someone along with you. And preferably someone who is more discerning in his/ her expenditures. When out shopping, do not make reckless decisions. I can never control my urges when it comes to shopping. I can easily spend up to several hundreds in one receipt at a particular outlet, eg Topshop. I am quite a material whore and conscious of product labels and I am not very proud of it especially since I cannot keep up with my expenses. If the top does not seem to complement me, I will still buy it (not all the times, but once is bad enough) My friends can vouch for me. When they ask for my opinions, most times, I tell them to buy it. I can be out of a shop within 45 minutes but within this short span of time, I can easily be a hundred dollars poorer.

4) Think long term.
Yes, it is human to be blinded by our short term desires without considering the long term consequences. For me, my long term goals include my marriage and family, having a decent car, a pent house apartment or at least a condo. But this is certainly not happening with only seventy dollars to my name. Start thinking long term, be frugal now so that you may get to enjoy it in your later years.

The only reason why I am living in a comfortable environment now is because my parents had their own savings plan in their younger days and religiously followed through. They are the perfect example of what I should be looking up to and aiming for. The problem is really not with the input; it is with the output. A R Bernard recently said this 'when your outgo exceeds your income, your upkeep will be your downfall.' Make some adaptations to your lifestyle and you may actually find big improvements to your savings :)