Every culture has its superstitions, most rooted in tradition. For the Chinese, it is the ghost month – it is when evil spirits are unleashed from hell and roam the earth, bringing bad luck wherever they go. For westerners, it’s Halloween and for us Filipinos, it’s comparable to All Saints’ Day and All Souls’ Day.
However, PERAnormal activity can happen not just during ghost month or the Halloween season but also perhaps all year round. This is usually when we wonder where did our money go when we just recently received salary or income?
This phenomenon can be referred to as ‘ghost money’. Ghost money is when you just received money in your wallet or bank account that already has an intended use. It is money that does not actually ‘exist’ in the sense that it’s already required to pay a bill, debt, tax, rent and the like.
“It is not the size of your salary or income that makes your rich, but rather it is your spending habits.”
One of the biggest challenges in personal finance is figuring out ways to spend less money — and one of the best ways to accomplish that is to manage, reduce, and/or cut down on your recurring expenses.
Before everything else, DOCUMENT
Document your expenses. It’s sounds and is so simple to do but many of us don’t do it or make up excuses not to do it. Because it is hard to see the cash inflow and outflows as it makes us accountable to our actions. Document by using an app or a simple notebook to track your income, savings and expenses; heck you can add in your financial goals in there as well.
One easy step you can do is to list down all scheduled payments/expenses, so you can plan your savings accordingly ahead of time. Examples: Yearly taxes (real estate, licenses, etc..), tuition, maintenance (House or vehicle), insurances (Life and non-life), mortgage and debts and so on.
Having a clear picture of things makes it easier to prioritize.
Cost Avoidance
Big things (like debt) comes from small beginnings. Habits (good and bad) can determine everything. Distinguishing between wants and needs and being disciplined about it is very important in keeping your expenses low. Say no more often. Delayed gratification doesn’t have to feel like you are sacrificing all the time, think of it as you are one step closer to accomplishing your goals.
Cost Reduction
For things that you need or keep on using, check if the brand you are using has a cheaper alternative without sacrificing quality. You can also choose to stop eating out.
Other controllable expenses that you may have can be related to cars and utilities. You can cut down on energy bills by swapping your lightbulbs with CFL or LED light bulbs with lower wattage instead. Also, create the habit of unplugging unused electrical devices as most electronic devices constantly draw a small amount of electricity, a phantom charge, that can add up quickly when you consider just how many devices and small appliances you own.
Also, consider reducing or eliminating other ‘want’ services. Like cable, Netflix, to name a few.
And if your current income is not enough, you can always make more to cover your lifestyle expenses through part-time jobs, selling unused items, and the like activities.
Your decisions will always affect the outcome with the right mindset and financial habits. Always remember and remind yourself that you are in control.
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Vernon Joseph Go is an RFP®–Registered Financial Planner | Licensed Real Estate Broker | Content Creator | Podcast-on-the-go Producer & Host