Most of us rely on bank loans to pay for the things we need and move forward in life. It’s not uncommon for someone to take out a car loan and a house loan, while still paying off the loan that funded a university degree. Unfortunately, life in Lebanon is getting increasingly expensive, while the majority of Lebanese don’t receive a salary that can keep up such inflation. It may seem that we always have a debt to pay off and we continuously struggle to make ends meet with the little wages that we earn.
Payments and expenses can pile up and creep up on us when we least expect it. Very few of us actually have a budget, but it’s probably the most important tool in managing your expenses. Calculate how much your fixed expenses cost you every month and subtract it from your monthly earnings. Do you make enough money to cover your expenses? Figure out where you can spend less and put it aside as soon as the money comes in so that you aren’t tempted to spend it.
Nevertheless, the sooner you pay off any outstanding payments, the better. The longer you leave these debts unpaid, the more the interest accumulates. Hence, don’t wait until they become unmanageable. You also shouldn’t have many credit cards to begin with. Stick to one or two so that you are able to settle the balance each month.
And when it comes to grocery shopping, buy in bulk. Whether you live alone or you have a family, buying household items in bulk can save you a significant sum of money. You’re always going to need things like toilet paper, toothpaste, tea, coffee, sugar, etc. Stock up once a month at wholesale stores.
Finally, it’s never too early to start saving for your retirement. The later you leave it, the more money you have to save in a shorter amount of time.
Plus, the younger you are, the more time your savings have to grow and accumulate interest.