Money Management: A Small Leak Can Sink a Ship
Do you have a money leak? If so, you may feel like your money is vanishing into thin air.
Sometimes, when we neglect our money management and don’t keep a close eye on our spending and expenses, it can feel like we are throwing money down the drain or like we have a hole in our pockets.
If so, you need to seriously examine your bank account and plug the leaks before it reaches a dangerous point of no return. If you are prepared to take a close look at leaks, and if you are prepared to fix the problem, you can avoid wasting money and ensure that you fix your financial affairs.
“A small leak will sink a great ship.” – Benjamin Franklin
Just as a small leak can sink a great ship, a small leak in money management can lead to financial disaster.
Perhaps you start out the month with money, but by the end of the first week, you have nothing to show for it. Where does it go?
If this is you, you need to stop what you are doing and investigate where the problems are.
You need to develop self-control when it comes to your spending.
“Like a city whose walls are broken through is a person who lacks self-control.” (Proverbs 25:28)
You can consider the following to help PLUG YOUR SPENDING LEAKS…
Study Your Bank Statements
You need to find the leaks and plug them.
Take a close look at your bank statements. Examine them. Remedy the situation.
Track Your Spending
Tracking your spending will help you to pinpoint where those small expenditures are going and how they add up.
You can keep track of your spending activities throughout the day. This practice will help you to be more mindful of where your money is going.
You can use a small notebook and save notes on your mobile phone.
Tracking your expenses will also help you to take a more disciplined approach to your money management.
It will also help you identify and stop impulse purchases that are stealing your money.
Double Check if You Need it
Before you buy anything, ask yourself…
- “Do I really need it?”
- “Is this really needed?”
- “Can I afford it? Can it wait?”
Don’t Buy on Credit
Do not buy on credit. Say no to taking on debt. You will have to repay the money with interest.
Debt will erode your cash flow, leaving you stressed out and cash-strapped.
Budget
Keep a close eye on your budget. Limit your spending to your budget.
Make sure that you build savings into your budget and that you only spend what is left over after allocating money to your savings.
Allocate an allowance for personal goods in your budget and stick to it.
Cut Back on Unnecessary Spending
If the item is not needed, don’t buy it.
Can you pack lunch for work instead of buying ready-made expensive meals? Can you go out less?
Can you find a worthy cause to get involved in?
“The wise man saves for the future, but the foolish man spends whatever he gets.” (Proverbs 21:20)
Examine your leaks, identify the problem areas, and set up a plan to address them.
Create a budget, be disciplined, and keep a close watch on your spending. Manage your money well. You can plug those spending leaks and set yourself up for a more fruitful financial future.
