An urban lady diary

Optimize The Financial Thingy

Wednesday, November 27, 2013

Now playing: SNSD - I Got A Boy

After many evaluation for my budget, I always feel frustated every end of the month. Why? Because My money just left below my budget planning...arrrrr. Hell yeah I expected to set aside a little money at the end of the month just in case for my emergency deposit for early next month but the reality is far from the expectation. As You know that I am perfectionistzilla so I analyze that condition why it happen to me. And I come to the final conclusion that the cause of that problem is because my weekend budget that always become over budgetting. Initially I already set the weekend budget but everytime I lack of money on the weekend I always give supplement budget (sounds like finance module consultant huh ;D ) to my weekend budget. And that was bad strategy for my financial planning. And The second cause is as an impulsive person I often buy something that I want not what I need.

After I skimming read The Automatic Millionaire by David Bach, I know about The Latte Factor. The Latte Factor is an idea to look at the small things you spend your money on every day and see whether you could redirect that spending to yourself. Putting aside as little as a few dollars a day for your future rather than spending it on little purchases such as lattes, bottled water, fast food, cigarettes, magazines and so on, can really make a difference between accumulating wealth and living paycheck to paycheck (source taken from here). 

So here's my so called strategy to optimize my financial planning:
  • Don't ever give supplement budget to your weekend budget if it's not for something really really urgent. I always arrange that every Saturday I will go hangout so I set the budget for this day higher than on Sunday. Sunday is time for stay home, just chillax at home by doing dvd marathon or cooking experiment or staying on bed as lazy people do. I set the budget for friday night too if I wanna go to cafe to browse something (or download) and have some latte or capuccino. But I am still flexible person, If I lack of money on this weekend, I'll add the budget, which taken from next weekend budget, for this weekend. This is not the same as supplement budget, because the next weekend budget will be reduce.
  • Be smart shopper!. List down everything that you need not that you want. Give the budget for everything that you need and the deadline to fill it. Browse the price for everything that you need, then compare th price between one shop and another shop. By that you'll have some consideration for your final decision and you can save up your money.
  • Now based on the latte factor, you can do many things. Like you can bring your own tumblr when go to office instead of buy bottled water, you can make your own coffee with instant coffee instead of buy coffee from fancy coffee shop (but rarely you can buy it too), and you can have lunch at the office instead of have lunch at resto or mall (if you are bored with office meal, you can bring some meal from home).
  • Utilize the seasonal discount or sale event or promotional event when you are shopping.
  • Utilize the member benefit or other offering when you are shopping. In example, I am as The Body Shop user I am trying their offering for the member like if you bring you empty bottle when you buy their product you'll get discount (with this you can save your environment too :) ). Or like In Starbucks, if You bring your own tumblr when buy their product You can save up your money.
  • If You are a person that easily attracted to something that you don't need like me, you can avoid something that can lead you to do that. Example: if You have tight budget but unfortunately today is the weekend you can go to cafe which its location seperated from the Mall. Because if it is in the mall I bet you can buy something that you don't need.

That's all of my so called strategy, hope it can be usefull for you readers. If you have some, you can sher it too in here :)

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