by Andrews Victor

Created on: January 07, 2010   Last Updated: January 08, 2010

How many times have you looked at your bank balance at the end of the month and said to yourself, in despair, “Where did all that money go”? How many times have you stood in a queue at the bank for a loan and wondered: “Do I really need this?” How many times have you had to rush a family member to a hospital in an emergency and suddenly realised that you did not have the money to pay the medical bill?

It is not just because the current recession has forced tough times on us that we need to appreciate the wisdom of cutting back on our expenses, of creating a nest egg that will be handy come that rainy day which dawns on all of us sometime or the other in our lifetime. Even under normal circumstances, it is always advisable to tighten our belts and not succumb to a culture of excess.

By following a few helpful suggestions you may be able to organise your finances wisely and, who knows, at the end of the month you may surprise yourself with a little bit of extra cash saved over!

Live within your means

Draw up a budget of your monthly income and expenditure. Check how much you earn and what you need to really spend on. Make a list of must-haves and cut out the can-do-withouts – and stick to the plan diligently.

Cut down on your bills

A major portion of one’s income is spent on paying telephone, electricity and water, and cable television bills.

Power bills: Try reducing your electricity consumption by following simple hints often provided by the Electricity Department – switch off lights when not needed, unplug appliances when not in use, opt for a fan over an air conditioner, use energy-saving bulbs, don’t leave your house sparkling like a Christmas tree when you are out (keep just one light on, if you need to) and organise your television viewing so you can share one set.

Water bills: Take showers instead of using a bucket and mug to take complete baths, get water leaks fixed pronto and try to manage your water usage in the quota allowed, in most countries, by the Water department.

Phone bills: This is a major bone of contention in most households. Before making that call, ask yourself whether it is urgent. Delay it if you can. Keep conversations short, stick to the point and avoid repeating things that you know will spread by word of mouth anyway. Be mindful of the ticking clock!

Cable TV bills: Do you really need scores of channels when in reality you will be watching only a handful? Wouldn’t it be better

• 1
• 2
• Next Page >>