Be smart with your salary – and get rich

Men's Fitness - - Updates -

Take it away on pay­day

Do you end ev­ery month out of money? Has that al­ways been the case, even though you’ve had mul­ti­ple pay rises since your first job? Many of us tend to spend to our limit, so all our money gets spent re­gard­less of how much we got paid. To spend less and save more, set up a stand­ing or­der on pay day to move a per­cent­age of your salary to a sav­ings ac­count. You won’t even no­tice it’s gone and hav­ing less money to play with each month will keep your spend­ing in check.

Get a pre-paid debit card

Set­ting a weekly bud­get for go­ing out, drinks and food is easy; stick­ing to it, es­pe­cially af­ter a few drinks, is re­ally hard. Ei­ther with­draw your weekly bud­get in cash at the start of a week, or sign up for a pre-paid debit card (app-based bank Monzo of­fers one) that you can top up each Mon­day for your week’s spend­ing. Both ap­proaches will make you think more about each trans­ac­tion and whether you re­ally need it, rather than mind­lessly throw­ing your cash or credit card around.

Curb your im­pulse buys

It’s easy to over­spend on things we don’t need: a re­cent US study by Deutsche Bank Se­cu­ri­ties found mid­dle-in­come fam­i­lies spend 50% of their money on “lux­u­ries” while low-in­come fam­i­lies spend 40%. In an­other study, half of re­spon­dents blamed emo­tions for over­spend­ing. Com­bat im­pulses with the 30-day rule: when you see some­thing you want, write it down with the price and date. If 30 days later you still want it, get it, but there’s a good chance you won’t.

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