Syaza: It is important to note that you should save at least 10% of your earnings.
RECKLESS spending can lead to big financial problems such as credit card debt and even bankruptcy. Do you know how to practise prudent spending? Here are a few tips.
1. Make a list
Creating a shopping list helps you to prioritise your needs over your wants. Without a list, it is easy to forget what you actually need to purchase, resulting in unnecessary items in your shopping bags.
2. Practise the 30-day rule
This rule is important when you feel the desire to buy something you want, rather than need. More often than not, you buy things on the spur of the moment and regret doing so when you realise that you have no use for them. Therefore, waiting 30 days to see whether you actually want the desired item will help you to be more careful in spending your money.
3. Buy secondhand items
In other words, go thrifting! You don’t need to spend hundreds on clothing items to look stylish. Thrifting is not only beneficial to your wallet, but also to the environment. Some apps will ease your process of buying secondhand items, ranging from clothes to furniture. You can sell your things on the apps too.
4. Separate your savings
It is important to note that you should save at least 10% of your earnings. The money you save today will be there in the future for emergencies or for when you want to treat yourself to something.
5. Find alternatives
Take for example you want to buy fast food for lunch, but fast food can be quite expensive. An alternative for it is to make your own lunch. Another example is when you want to buy a dress for an event, but don’t want to waste money on a dress you will never wear again. What you can do is borrow one from your friend.
Syaza, 18, a student in Selangor, is a participant of the BRATs Young Journalist Programme run by The Star’s Newspaper-in-Education (Star-NiE) team. For more information, go to facebook.com/niebrats.
