For almost three years, I've been on a personal mission to level up my finance game. It all started when I realized that, at the end of each month, my hard-earned money seemed to vanish into thin air. I knew I needed a change (and quick), and the first step was to find out where my money was slipping away.
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Transportation and my coffee addiction were reasons that were draining my purse strings regularly. Rush hour traffic and pricey coffee addictions were silently bleeding my budget. Another expense culprit was dining out or ordering in. Working in a hospital limited my food options, mostly leading me to costly choices.
To stop the financial bleeding, I decided to track every single expense, like every single expense. At month-end, the pattern was clear: transport and food were eating a big chunk of my income. The solution was simple but required my discipline: no more unnecessary spending.
Three years later, I've noticed a drastic change in my financial aspect of life. With a new job and taking conscious decisions, my transport costs have gone down, and I've tried to reduce the urge to eat out during work hours. Coffee now comes from our in-house barista, and ordering in is a weekend treat shared with my sisters.
However, it's not just about cutting expenses. Instead, I redirected those savings towards investing in myself. I've invested in an Image consultant, dental care, dermatologist and skin care products, an upgraded wardrobe, and even a memorable trip to Italy. It's a working progress, but I'm investing in becoming the best version of myself.
Now, I'm not claiming to have saved mountains of money. But I've redirected savings towards my personal growth rather than letting them vanish into fleeting pleasures. The goal is to reach a point where I can strategically save for something substantial—maybe a home.
In a world where spending can become second nature, my advice and approach was/is simple: pause and reflect. Ask myself, "Do I need this, or is it just a want?" Keeping track of your expenses is very important. It shows you where you're spending without a second thought.
Lastly, putting aside a percentage of your income to needs, wants, savings, and investments. For me, the magic formula is 50% for needs, 30% for wants, and 20% for savings and investments. I use a tech-savvy Google Sheet linked to a form to easily monitor and visualize my spending patterns (also with a pie chart). This is how I knew where my spendings and expenses were, I'd recommend everyone to do this, it is indeed a game changer, being in control of your finances.
So, my words of advice are to make conscious choices, track your expenses, save strategically, and invest in your futures. Who knows, a dream home might be on the horizon or a car!
What about you? What do you do to save or budget? What is your go-to tips and tricks that has worked for you? How do you level up in your finances? Do you read any books?
Love
Sarina x
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