Rainbow on FI

Identify Wastage Do up a monthly self-budget report with breakdowns on the spending- loans, transport, food, household, bills, insurance, etc. Identify what are the necessary expenditures and what are the unnecessary expenditures by reviewing your receipts, credit card bills and saving account details. It is useful to keep the receipts of large expenditures or uncommon purchases so you would not forget 'where the money goes'. Make a list of items that you have spent on which you can actually do without, or the spendings that make you feel guilty or regret afterward. Recording may take some discipline, but gradually it can become a habit. Reduce Wastage After you have reviewed and identified a list of 'wasteful' spendings, use that as a reminder. What could you have done to avoid them? Methods that you can adopt to reduce $ wastage include: - Borrow it If you know you are not going to use that item often or keep reading that book, why not borrow it? - Sales a

Step 1: Identify your saving goal - what is the purpose of your savings. Step 2: Calculating how much money do you need to save. Step 3: Calculate current income and proportion to set aside in order to save X amount in X time . Step 4: Plan how you can set aside this sum of money. (Bonus Step 5: Think about where you can park the money for optimal returns yet keep them safe.)