Every person is different in body physic, thinking and emotions, so definitely he is going to spend money according to them.
Because of unplanned spending, people face a lot of problems, after all everything is connected to money and if you have plenty of it, you will be happy.
People who say that money can’t buy happiness well I want to say to them that money is happiness.
I think money management should be done by every class because if you have a careless attitude towards money then you will soon become bankrupt. well, I am talking about generous people and people who are miserable are hated by everyone.
So if you want to spend money and save money at the same time.
Here are some tips I want to share with you,
A) make a budget
whenever you get your salary in your hand you should make a list of things which you want to spend on, remember you should not do the unnecessary spending.
According to Kaizen the Japanese principle, which teaches us to throw things away which are of no use.
For example, if your salary is $2,000 and You want to buy $500 shoes then here you should apply Kaizen principle, $500 is 25% of your salary which is overspending and you need to avoid it if you don’t want to become short of money in future.
B) Set financial goals
everybody has a dream in their life Somebody Wants a big car or a big house, but they don’t know how to achieve their dream as they don’t do any financial planning.
Here are the things which you need to do if you want to buy something big in future.
1) savings– saving money is like earning it, you need to cover your expenses first and then you should take at least 50% leftover and put it in non-risky assets like fixed deposits, debt funds etc.
2) The rest of 50% should be invested in more ROI assets like equity, mutual funds etc.
3) reduce debts
debts are the worst enemies to an individual because it is mostly backed by the interest which you have to pay.
Avoid unnecessary spending with credit cards because then you have to pay hefty annual interest which you can easily avoid by doing transactions in cash or by some digital wallets.
C) multiple sources of income
Apart from all of this, you should have multiple sources of income.
Then even if you are fired from your job you can get income from other sources.
remember these tips are for middle-class income groups.
But everyone should manage their finances.