Tuesday Quote: Benjamin Franklin..
Benjamin Franklin
“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin
*Cut down on your daily mocha! I started donating that money. Instead of buying a frivolous drink on a daily basis, I decided to instead take a big portion of that amount and pass it on to somebody who looks like they are in need. A lot of people are going to go to bed hungry tonight, and not because their ‘dieting.’ You can do your part!
Tip: If you are anything like myself, you are not good with saving money! So, why not start little by little? Save 1KD a day! by the end of the month you would have saved 30/31KD. Next month save 2KD, and so on 
~ That’s saving made easy!! It’s the baby steps that teach us how to run at the end of the day!
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Try this at the end of every month:
1. Withdraw all the money you have from your bank account.
2. Go home and put 50 KD in a piggy bank. Now forget what you just did.
3. Keep the rest of the money locked somewhere safe at home.
4. Every morning, when you leave the house, take 10 (and only 10!) KD with you.
Now, knowing that you don’t have any credit in the bank, the only money you can spend are those 10 KDs.
What? 10 KD isn’t enough? Well, If you manage to go through the day and keep some of that money, it means tomorrow you’ll have more than 10 KD, maybe 10 + 4 KD, the day after that you may have 10 + 4 + 3 (17) KD or more, and so on..
It will be easy for you to notice where your money goes. Every time you open up your wallet, you’ll realize that you’ll have to live with just 10 KD for the entire day. So when you come to make a decision about buying something, chances are it would be spent on something urgent or necessary. What you manage to save at the end of the day will be the opportunity for you to buy what you desire (what’s not necessary) later.
Keep in mind that 10 KD a day adds up to 310 KD a month, which is significant because if you decide to spend a little bit more, say 15 KD a day, that number quickly climbs to 465 KD, and we haven’t even covered things like phone bills yet.
So here’s an example scenario: A friend calls you on Monday and says “lets have dinner at this fancy place on Saturday”. You know the meal will cost you around 8 KD and it’s going to be on the weekend, so the easiest thing you can do would be to try to save 1 KD on each of Monday, Tuesday, Wednesday, Thursday and Friday. On Saturday, you’ll be leaving your home with 10 KD plus the 5 KD that you have saved from the previous days. So you can now spend 8 KD and still have 7 KD cushion in case something else comes up (like going to a movie). You don’t have to worry about spending all the money, because you’ll have a fresh 10 KD waiting for your the next day.
3baid
December 25, 2011
Interesting!
I like that!
Ok I will give it a shot this month and let you know at the end of the month if I succeeded or failed!
thefrugalguru
December 27, 2011