This went on for quite some time until I realized it was not because I had a lot of things to spend on but it was because I had money habits that were not really good.
If you often get stress about money, you are not alone. Here are some habits that should help you manage your bag well.
Stop carrying a lot of cash with you daily
One thing I used to do is carrying a lot of cash with me. My thought process was that I might need it for something that I have not planned for. Thus, I would carry a lot of cash that I might not even use.
But one thing is for sure, I would end up using it for something not planned for. For example, if I am walking and I see something I like, my mind would immediately tell me to buy it because I have the cash with me.
This goes the exact same way with Mobile money, when I know I have a lot of money on my account. I can easily let it go in an instant, not because I have a lot of money but just because I know it is there and I can spend it without thinking about it twice.
How do I do it now? I only carry with me the money I know I will use. If it is transport or lunch or anything I only carry what I will use for the day, either by cash or on mobile money and if an emergency comes, I can either get it from my bank or anything.
This is different from having a lot of money with you because before withdrawing it from my bank via mobile money, I can actually think twice, because it is a whole process.
Do not lend money you cannot live without
There is this principle in finances that says you shouldn’t lend money you can live without. This means that you should lend money that you will need later. In other words when you lend money, consider it to be gone and that you will never be paid back.
Therefore, you should lend money in a moderate manner. For example, you can not lend Rwf900,00 when you only have 1 million on your account.
Even though you have money it is not wise to lend it without moderation.
Stop going out with a lot of money with you
When you are out with your friends enjoying your time, you can get carried on with the good vibes and you forget your budget. If I was out with my friends and I happen to have extra cash, I would totally spend it just because I have it.
This happened to me so many times I can’t even count. Me and my friends have adapted a solution, we all give the money to one person. The person is in charge of ordering and paying so that we do not exceed the budget.
You should have saving goals
Most people think that they should just save for saving, without a clear goal of what we are saving for.
For example; you can save for a house, a car, a business investment, retirement or even things you would like to buy. It is easier when you have a specific goal and a specific strategy.
You can even have multiple goals, you can save for many things at the same time. For example, you can allocate a certain percentage of your income to different things.
You can take a certain percentage of your income, dedicate it to saving and divide it into different goals. Through that process, you will be saving for multiple things at the same time.
Start tracking your spending
Tracking your spending may not seem as important but it actually is. When you know what you have spent for example in a month, you can better budget for the next month.
Through tracking, you can know what you need, what you do not need, what you should spend less money on and how you should save.
This can encourage you to spend less and also remain with some money on the side.