Managing Life With An Allowance

Managing Life With An Allowance

Managing life with an allowance is not always easy. It's not that only those who are poor are on an allowance but surprisingly the rich too. The only difference is that their budget is different from the rest. Actors, influencers, public figures etc. all of them live on an allowance. After all, they also have bills to pay and children whose future they have to think of.


The urge to spend less lavishly is the challenging part of living on an allowance. People follow different ways of saving when trying to live on a budget. Below mentioned are a few different ways of saving money, whether you are a student, a working adult or even a stay at home mom.

1. Know your NEED from WANT: 

Knowing the difference of 'need' from 'want' is the most important step of saving. To differentiate your need from want, you have to think which one means more to you. You will have to know your priority. Once you prioritize your 'need', you can achieve what you 'want' in the long-run.


2. Keep an emergency fund: 

Keeping aside an amount of your choice every month can come to great help during times of emergency. This can be in the form of cash or plastic (card). Although it is advisable to have both for you never know when can ATMs/Banks be on holidays. If you are an elder sibling or parent, this creates a positive habit to the ones looking up to you as an inspiration.

3. Keep a track of your monthly/yearly required fixed expenses:

Maintain a tracker to know if you have saved more than the previous year. By monthly required expenses, I mean assets that you know you HAVE to pay. These can be variable assets like electricity, water, internet, petrol (if you own a car). These amounts can vary from month to month but keeping a tracker can help you know a round off amount as to how much to keep aside and whether you are off the regular amount spent each month. Whereas, you also HAVE to set aside a separate amount for fixed assets in cash for tuition fees, rent, maid/driver (if you have hired one), pet vaccinations and insurance. Since these amounts are fixed each and every month.

4. Timing: 

We all are taught as kids in school about the proverb, "Time is Money" which actually means, the earlier the better. If you know there is an occasion coming up in the family or with your friends (if you are just a student), saving a particular amount and shopping for whatever you will be needing in advance can help you make the experience of the occasion less tiresome and stress free.

5. Have a leisure budget:  

Keep aside an amount of your choice every month for leisure expenses. Whether you spend it or not is your choice, at least you know your spending limit. For all you know, if you don't spend all of it a particular month, look at the bright side, you will have a larger amount at the end of the year or semestral break and can do whatever you want to from that bucket list of yours.

6. STOP investing in monthly subscription boxes: 

Investing in subscription boxes can be exciting but you may end up not using all the products that came with the box and all the money spent will just go in vain. For all you know, you could have spent it for something better and more worth than what you have received in that box. If you are a pet owner, let's just be real, your pets are not going to play with so many toys/treats. All they want is your affection and care. For those makeup lovers, it's more practical to spend for the product that you ran out of or need than the products that came with the subscription box. 

"Saving A Small Amount, Soon Builds Into A Large Amount"

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