Lifestyle changes are often unavoidable, in line with increased income. In the end, you actually become extravagant spending. Even though salaries are already high enough, many people still cannot control their expenses.
Reporting on foxbusiness.com, Brian Madgett, head of consumer education at New York Life, sait that many people experience an increasing income, but often still feels insufficient. It happens because when income changes, you allow yourself to spend more money.
How the way you shop, including buying clothes at a price more expensive than before, or even an expensive vacation, to please yourself.
Such shopping behavior can quickly entwine yourself to debt. We often see an increase in consumption credit when salaries go up. Well, do not let the actual excessive lifestyle that actually makes you bankrupt.
Here are some tips so you can control your lifestyle and shopping behavior.
Calculate each expense
When you don’t have money, you tend to pay attention to every money you have. However, this attitude will fade when you have money. As a result, your expenses are full and you don’t know where your money is going.
Therefore, track every single your expense. You can use the application on a cell phone or write it down manually. This habit will let you know where your money is being spent. Then, you can make decisions regarding your expenses, such as what needs to be purchased or not.
Plan every entertainment
Even though your salary is high, you certainly cannot indulge yourself every day. Instead, make the rituals of pampering yourself, like holidays or entertainment and other pleasures. Provide a special post for entertainment in budgeting expenses. Then, set aside special funds, like holidays, watching concerts, or other pleasures.
Saving
If your income and expenses increase, then your savings must also increase. In fact, we need to realize that the cost of living will be more expensive as you get older. You can arrange automatic transfers to pension funds, emergency funds, or other savings.
Don’t be jealous of other people’s lifestyles
Do not be easily jealous or tempted by the lifestyle of others, both colleagues, friends, or celebrity. Instead, focus on managing your own life and financial goals that you have designed for yourself.
It’s easy to fall into the trap of joining the peopple’s lifestyle around us because we want to look as successful as they are. These people are more bankrupt because they want to be the same as those around them.
Read more :Bajaj Finance’s Warning Signs Worry Investors
