In the day and age we live in, spending a comfortable life in Pakistan as someone who makes only 50k a month seems like an extremely difficult task. And why wouldn’t it be? One impulsive trip to the convenience store and 5k seem to fly out of our pockets on their own!
However, with the right amount of understanding and planning of your finances, one can easily come to control their economic state in no time, and this article will be your gateway to a healthier relationship with your expenses, leading you to a more stable lifestyle.
The necessary steps you can take include:
1. Understanding your expenses(70/20/10 Rule)
This is perhaps THE most important thing that we need to keep in mind while budgeting. With the prices of basic necessities sky-rocketing, it’s crucial to apply this rule in our daily lives by allocating:
- 70%: For needs like rent, utilities, groceries, and transport.
- 20%: For wants like non-essential spending i.e. entertainment, dining out, and clothes.
- 10%: For savings i.e. emergency funds or other investments.
By applying this method, we take our first step toward proper budgeting. It may seem a bit striking at first, but once you start, it will bring immense relief to your financial state.
2. Reducing unnecessary purchases
Impulses are a real thing, and in a world where consumption comes above all else, it’s important to stay aware and drown our urges to avoid the dents in our wallets. Whether it’s a trendy item that’s on an irresistible sale or a bulk-buy of something you know you’ll never use, reducing these seemingly minor desires is needed to better sort your income.
This can be done by:
- Planning ahead: Instead of going on a mindless shopping spree, make a list of your necessities before leaving for the trip. Of course, some treats can be slipped in here and there, but it’s way better than having a heaping shopping cart by the end. Keeping a friend with you can also help since they can remind you to not overspend.
- Using the 30-Day Rule: If you’re tempted to purchase something a little too expensive for your budget, consider waiting for 30 days. In this time, your mind can think about its actions and their consequences, which will end up in the clarity needed to make the purchase proceed/stop, mindfully.
- Declutter regularly: Repeatedly go through your belongings(clothes, groceries etc.) to avoid hoarding items that you already have. This will stop the want to buy more and help to unsubscribe from the countless promoting advertisements, decreasing the temptation to browse online shopping sites without a purpose.
3. Track your spending
Spending an excessive amount of time on the internet may not always lead to impulsive purchases. If used properly, there are several sources online to guide an individual through their budgeting journey, be it on any amount of salary.
Some of these include YNAB(You Need a Budget), Goodbudget., and Empower.
These sites and many more allow us to use an automated way to sort out our financial spending, along with suggesting better investing rituals and saving plans.
However, if these seem a little overwhelming, a simple pen and paper work just fine when it comes to being mindful of your budget. You just have to find the motivation and start!
AN EXAMPLE
Consider that your monthly salary of 50k has been transferred to your account, and it is yours to waste or spend cautiously.
Sort out your salary using the “70/20/10 Rule”. This results in:
- 35,000 PKR: For rent (if any), groceries (keeping your planned list in hand ahead of time), and transport (lessening the consumption of fuel).
- 10,000 PKR: For fun activities like dining out or going on a mini shopping spree, making sure to do so after decluttering properly.
- 5,000 PKR: For blessing your savings account so that when there’s an unexpected expense, the emergency funds can keep the peace in your finances..
After doing so, spend the month applying the three main steps mentioned above over and over again every time a financial doubt occurs, and there you have it! An organized and safe economic lifestyle, catering to all that one may need to live a comfortable life.
CONCLUSION
In a country like Pakistan, several factors play into the fear of not being able to survive economically, inflation being just one minor obstacle among them all. Furthermore, immeasurable social and political events lead to the distress that many young adults live under nowadays, making them believe that their future will be troublesome due to their lack of income.
Even so, it is important to stay hopeful and use our minds wisely to survive in these times, because the circumstances may not be in our control, but our ways to deal with them definitely are.
Thus, we must understand our expenses, reduce unnecessary purchases, track our expenses, and most importantly, know that inconsistency is not a crime. Allow yourself to make adjustments and experience the results to better understand your finances. Remember all of this, and even a 50k salary will fulfill all your goals.
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