Financial Capability

How do you spend money wisely? 

People actually tend to overspend in a few specific areas; following the steps below will improve your overall financial health

 Figure out exactly what you want to do with the money you save

Get a piggy bank or other means of storage. 

Wallets might not be the best choice as they tempt you into spending your money because of portability.

Come up with a budget. 

Financial experts suggest you track your spending for a few months so that you start work on your budget knowing where your money is going. If you are bad about saving receipts for cash purchases, keep a notebook with you, to write down all cash purchases as you make them. Additionally, make a list of your monthly expenses, using your bills and the information you gather. Review this list to determine where you can reduce expenses and by how much.

Avoid impulse buying. 

Before making any purchase, ask yourself a few simple questions, and be honest with your answers. Only move on to the next question if you can answer yes to the current one. If you cannot get all the way through the questions, it is probably an impulse buy and you should pass it up.

Do I need it?

Will I use it?

Is this the best price I can get on it?

Does it add value to my life or my estate?

Shop around 

Make sure you get the best deal before buying anything.

Tell someone that you are saving your money so that they can keep you from spending it. 

Make sure you trust this person.

Remember that every penny counts.

If you are going to hang out with your friends, suggest you do something that doesn't involve spending money like going to the park, or playing football.

Spending money should be spent wisely. 

Pick out a designated amount a week to spend, and make it a very small portion of your savings.

Money in your savings. 

Note it down and come up with a goal which you'll like to meet. Having a goal in mind will make saving up easier.