You Need A Budget

Have you ever jot down every spending, using the envelope system or the 7 piggy box system? Money management or budgeting can be very tiring and confusing for some. And most choose to simply- forget it. I found a simple budget system recommended by productivemuslim.com website and  I think YNAB is one of the best money management tool. You can get a free 24-day downloadable software too.

Here's the simplified step, you can get a full explanation by downloading the ebook from it's website:

Step 1: Give every dollar a job. List down expenses and categories them and put amount of how much spending need in that area.
Step2: Save for a rainy day - break the the large less frequent expenses into monthly chunks.  Example:
Insuranse and roadtax, instead of clear up your one month salary to pay for that, plan 12months earlier and save for that dread payment.
Step3: Be flexioble and address overspending before moving to the next month
Step4: Spend on last mint income. This is a truly amazing ways.