Much harder than my Mathematics subjects back in college.
As an economist, it has been ironic that I'm having these difficulties regarding the "proper allocation of my earnings".
To help you further, here are some tips to help you in economizing your wealth.
1) Embracing a simple life.
I know it won't be easy for some of us but living out of extravagance will help us realize the importance of a single dime.
Living a simple life does not mean depriving yourself from our daily needs.
It is just taking away the unnecessary or irrelevant things that we usually do.
2) Pay your debt.
Make sure you pay on time to avoid the accumulating interest rate ( Annual Percentage Rate) being imposed by credit card companies.
I have worked in a credit card company before and I know the exact calculation for that.
Believe me, it is a burden.
3) Allot a certain amount to your bank account.
Pay yourself every month.
Consider yourself as an electricity/telephone service provider so you won't miss a single month to deposit a certain amount in your bank account.
4) In Economics, Savings = Expense - Income...
How about the other way around, Income - Savings = Expense? I got this formula from "The Window to Financial World" and I would also like to quote my Economics professors for this ISE rule.
Does it make any difference? Of course it does.
In the second equation, we gave priority to our savings, which means, lessening our expense and increase our savings depending on our income.
5) Never do the grocery with an empty stomach.
This will trigger the impulsive buying in you.
If you go shopping with an empty stomach, you tend to grab items that you think are worth buying just to satisfy your cravings.
6) When a pair of trousers, dress, cute tops catch your attention, leave the store right away.
The urge to buy an item will not last long.
We have to identify if this is "A MUST" or a "MUST HAVE".
This just means that frugality does not mean hindering yourself to experience and splurge on something that you want.
It is just a matter of self-control and understanding how hard it is to earn even a single cent.
For more helpful tips, you can check the book "Wealth Within Our Reach" by Francisco Colayco.