Handling your money is indeed very challenging. This is especially true for people who are just starting to work and earn their own money. They are excited to buy things they like and sometimes, even things that they do not really want or like, they just want to spend their money. That’s indeed very reckless and usually, that scenario ends up into one thing – being broke. And you surely do not want to see yourself in that kind of situation.

If you want to achieve your goals in life like getting a nice car, buying a $500k worth house and land from Lendlease, or being able to travel the world any time you like, then you should start learning how to handle your finances well and responsibly.

Here, we will share to you some tips that could help you spend and save money wisely.

1. List down your income and expenses – it is important that you see the big picture. List down your monthly earnings as well as your expenses to see what areas you need to work on and improve. It will give you a clear idea how much you’re earning and how much you should be spending to eventually save some for your future. You should include in the list your bills, rent, gas, grocery, food and others.
2. Come up with weekly and monthly budget – after seeing how much you are earning and spending, you will be able to come up with your weekly or monthly budget. This will help you to discipline yourself in terms of handling your money. Be sure to follow your set budget strictly. Do not overspend or else you will lose the purpose of having a budget plan. Well, you do not need to totally deprive yourself because you can include budget for your shopping too. However, be sure to spend within your budget only.
3. Allot money to go to your savings – next, you should make sure to open a separate savings account and allot specific percentage of your income to go in to this savings account. It is very important to be as consistent as you can so you can save money successfully. Deposit the money as soon as you receive your paycheck and not after paying bills or shopping.
4. Schedule your shopping trips – we mentioned how you can still shop but within your budget. Also, you should schedule these shopping trips so you do not buy things out of nowhere. If you’re having difficult time in the beginning, we suggest to stay away from malls or shopping sites especially if it is not your scheduled shopping trip. This is to stay away from temptations. You can set a once a month shopping but be sure to spend within your budget only.
5. Find extra source of income – lastly, it would help a lot if you will find extra source of income. You can start a small business or do extra work that would earn you extra money that you can save for your future. It will definitely increase your savings significantly and would help you buy a house or anything sooner.

It is advisable to take care of your finances as early as possible. Do not waste your money on material things that give you temporary happiness and satisfaction. You should think long term – think about the goals that you wish to achieve and work hard to reach those goals.