How to manage less money

Most people just make less money. They are difficult to reach the financial freedom because they need to cover their spending. Sometimes they borrow other people money to cover their spending.

Off course they must pay back the loan when the debt due. Sometimes they must pay the interest that is higher than the principal.

The people should not borrow to cover their spending. They must manage the money well so they can cover all the spending.  The keys of manage less money is to strict the spending. So we have to:

1. Create a budget

Budget may not help you to become rich but it is a good ways to manage your less money. Allocate your moneys to important things such as food, beverages, your apartment fee, also your credit.

2. Make more money

This is a good ways to increase your money and cover your spending. Find another side jobs that you can do after working hours. One or two hours that you use to work may make dozen or hundreds money.

Writing is the way to make money from the internet. You can also participate at the paid survey but you should sure that the website pays you.

3.  Live below your mean

Do not live like other people that spend so much money. You can go to the office by mass transportation that can save hundreds dollar from it. You should not buy the food outside that can

4. Saving first

Though you just have little money, you can save your money from your salary. Try set a side money for saving about ten percent. You can deduct other spending so you can save for more money. When you get the unexpected income you can put it on your saving.

One day, your saving will become large and one day you will have more money.

The Benefit Cutting your Credit Card

There is a business community in my country that promotes "avoid usury" movement. They do not avoid to   business with bank because the bank charge interest to the debtor and they also share tha interest to the creditor.

Their movement to leave riba (usury) in their live. One of their actions is to ask people cut the credit card. They realize that credit card is a usury that load people.

I also agree to this movement because the credit card cannot give the real benefit for us. They may give you money at the advance but you should pay more than you can receive because there is some fee such as admin fee, interest fee, and so on. 

The credit card also boost you to spend more. Some people spend thousand dollar in a day and reach the credit card limit.  They think that they can pay all the debt later.

Cutting credit card will lead you to financial independence. You do not have to  pay the debt and you do not need the money from credit card. You can find money from business or you can work for other people.

You will leave the Sin. As a Muslim, we believe usury a sin. Allah and the messenger will embattle you that you will not win on it. 

How to save on lunch

As the worker or employee, we must stay at the office until the afternoon, meaning we have to eat lunch at the office.  Few people may go back to house to eat lunch because the house it is not far from the office. Other people eat lunch at the office or the cafe that near the office.

Eating lunch at the cafe is not cheap. You must provide five o ten dollar. The cost of your lunch will be $ 140 dollar a month to $ 280 per month.

If you live at the tighten budget, you must change it. You can reduce the cost of lunch by doing this:

1. Bring the lunch box to the office. You can save your money and you health more health food. Your wife may cook the best food for you. He may reduce the salt on your food or the sugar. I believe your wife will not add the worst food to your lunch box. The box may contain various foods such as bread, vegetables, meat and fruit.

2. Bring also bottle in water or biscuit.

Sometimes i need a snack at the working hours. If i hungry i eat one or three slice. You are better buy the biscuit on the market rather than buying at. You are better to drink water that is cheaper than a cup of coffee.

3. Fasting

You do not have to eat lunch at the middle of the day. You can fast two times a weeks.  As Muslim, we can fast on Monday and Thursday.

How to save fro the multiple saving goals?

The aim or goal to save some money is use the money. We want buy or use the money for something or someone. Perhaps you have so much aim or target such as:

1.       Buy the first house

2.       Buy the first car

3.       Pay the college

4.       Pilgrim to Mecca

You must need thousand dollars to save for those aims. Unfortunately, you just can save thousand dollars in a month. So you should be clever to manage your money

First you must prioritize what aim that is the most you need. You can place the important aims at the first line. Meaning you must reach the first line before you go to the second line or third line.

Some aim needs so much money, so you must be able to provide or save so much money. You may put the house as the first your saving goal because a house is the shelter of every people. Unfortunately, we cannot buy the house because our limited money. We may need dozen years until we buy a house.

Off course, we cannot ignore to save for short term goals.  Perhaps you want to buy a blender or you need to buy a new shirt because your shirt is too old.

You can divide the money for the log term goal and short term goal.

What you can do after paying off the debt

The article is interested me .Live after debt. For the debtor, they must be happy after paying off the debt. They do not have to pay the debt again and so the interest. Now they can more enjoy the salary.

Off course, they can celebrate for once.They can outing out for it but they should be careful. They can be trapped at the debt again if they do not change the lifestyle.

after the debt life, you can restablish your budget now. You will get have more money because you do not have to pay the debt. You have to wise to use the money.You can save the money for the emergency fund that is six times your montly spending. This will help you to avoid the debt.

Payongg off the debt is not finalgoal. You should always think the other goal . You must have some gola that you want to reach. You can use the money to fund your goal. I believe you want to fund your kid school or buy a new car. Prioritize the golas that you need not you want.

Read also:
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Pros and Cons Peer to Peer Lending

I amaze that someone that you do not recognize lend you some money. They may want to help you to pay off your credit. We can also determine the interest rate. Something that is impossible if you borrow money from Bank. There are some kind people who charge low interest. I do not know the admin fee of the peer to peer landing. I guess it is not much as administration bank fee.

The borrowers may get money fast, meaning you will get the money fast. It is good too pay off your debt fast. The application is not difficult as bank or other financial institution. 

The cons of the P2P lending are the limit of the credit. You cannot use the P2P to buy house, car, or student loan.   

Debt is still debt. You may get the lower interest but you should pay off the debt. This world where has no free lunch. When the debt due, you have to pay the debt and the interest. The interest is not higher as the bank loan but you still pay the taxes. The interest is higher than deposit rate. You cannot set the interest that is lower than deposit rate because the lender will not want to do it. They want to lend you because the interest is higher than the deposit rate.

Perhaps the lender will charge fine if you do not pay it. The debt still chokes you. Like snowball that will chase you.

I wonder when someone lends you money without interest rate or any interest. They just want to help you to get out from debt.  You can pay off the back if you are able to do it. You are better to find your friend or family who can help you. They may help you without interest.    

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