He called to search for more products and services at lower cost
A financial expert outlines tips for managing money and cutting spending
The financial expert stressed the importance of using the comparative method and recording expenses.
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Mohamed Helmy: “There is no magic solution for everyone, and if you want to reduce spending, you will find ways to do so, or ask for help.”
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The financial expert and tax agent, Mohamed Helmy, identified a set of tips and basic and subsidiary steps to develop a successful budget suitable for individuals to manage money and reduce expenses.
He added to "Emirates Today" that "money management" or budgeting is the first step in financial planning, pointing out that money management targets two important things: finding funders for the project, and making sure that you use your money in the right way to reach your goals, and therefore you must consider managing Money as a valuable opportunity to benefit from your money, stressing that managing money is more difficult than earning it.
money exchange
Helmy outlined a number of tips to help manage money better, namely: Determining how the money is currently spent, pointing out that this requires reviewing the checkbook, credit card account statement during the last period, as well as ATM withdrawal receipts.
He added, "You must then evaluate spending and define some rules for spending in the future, and then track current spending, and make sure to adhere to this procedure on an ongoing basis," pointing out that the rules you set could be subject to amendment, if it is noted that they are too strict or too lenient.
Spending cut
Helmy continued: "There are two important steps that help reduce spending, namely: avoiding the rush to buy, and here you have to think and not rush to take the money wallet from your pocket or credit card, then compare prices in shops, and differentiate between needs and desires."
Helmy explained that “need” is a basic necessity for life, such as clothes, food, medicine, work needs and medicine. As for desire, it is what you desire, but it is not essential, for example: vacation, meals in restaurants, video games, membership in the club, or buying clothes. From a well-known brand, therefore, needs and desires must be prioritized.
define the priorities
Helmy warned that one of the most useful methods for setting priorities is the (1-2-3) system, meaning that the number (1) means the things that are indispensable for a healthy life, such as food, shelter, and clothing, while the number (2) means Things that are not essential but are important, such as sports shoes, and a mobile phone.. As for the number (3), it means things that are not essential and not important (including candy, health clubs, and downloading music).
Expense Tracker
Helmy said that it becomes easy to track daily expenses, once you get used to it and through several steps, such as recording in a small book every amount you spend, as well as recording expenses on a smartphone or other electronic devices.
He added that if you deal with online bank accounts, you can get electronic account statements that display the history of spending, to divide that spending into categories, and you can download a free program from the Internet, which downloads data from your bank account.
Lowest cost services
Helmy pointed to ways to obtain more products and services at a lower cost, such as obtaining the best communications group, as an integrated package that includes fixed phone, mobile, Internet and TV service, pointing out that here it is possible to contact the service provider to negotiate the best package.
And he indicated that you can also have the best package of banking services at the lowest cost, advised to contact the financial institution you deal with, to see if you can get a low-cost banking deal, or lower profit rates on the credit card.
Helmy stressed the importance of using the comparative method to find bank accounts and credit cards that are less expensive and have the features you need.
He explained that there is no magic solution for every person, because every person and family is different from others, and if you want to reduce spending, you will find ways to do so, but if you are unable to do so, you can go to credit services specialists to help you.
Pay bills
The financial expert and tax agent, Mohamed Helmy, advised the importance of paying the bills in a timely manner, to avoid late fees, interest and fines, stressing also the need to check the bills, to see if there are errors or overpayments.
He also called for examining the real costs of owning a car, and comparing the cost of renting a house versus buying it.
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