While many work very hard and earn salaries, they find it very difficult to sustainably manage these salaries. As a matter of fact, most exhaust their salaries and broke instantly just as many even go broke before they collect their salaries. Most live on credit while most are neck deep in debts and may never come out of the problem as they do not even have a clue about the way out. This is a major source of concern to many yet they are helpless. It is dangerous for peoples' psychology and can have spiral effects on their relationships especially within the basic units of their homes and families.
This problem can even have dangerous effects on workers' productivity as they may be demoralized and demotivated since they would be of the view that their take home pays (salaries) can never take them home. They could them feel alienated from the proceeds of their labor and not put their best in the production processes. By and large, it is very dangerous for workers and people generally not to be in control of their salaries and it is even more dangerous for them to always go broke. Below are some tips on how to manage your salary and not go broke:
1. Convince yourself that no matter how much you are earning, you can and will manage it well. That is, you must adjust your orientation and psychology and make yourself believe that no amount is too big or too small to manage without going broke. You can live within your salary.
2. Do not automatically adjust your expenses and lifestyles whenever you have a pay raise. This will prevent you from getting trapped in the Parkinson Principle (PP). Cultivate the habit of saving the extra increment for more reasonable use.
3. Be wary of aggressive advertising. You must see advertising as make belief instituted by selfish manufacturers to make you see their products as a need for you. Advertisements are to create more markets for manufacturers to make more profits and rip you off in many instances.
4. Never buy on impulse. Buy only those things you need not those things you want. Wants are different from needs. Always make a list of your needs and go for them and not your wants. Needs are critical to your existence but wants are not.
5. You may need to reduce your reliance of credit cards. Do not always take your credit card(s) along with you. Take it out only when you want to meet a need. Also, try to buy through other means like debit cards rather credit cards.
6. Against the above background, it means you must maintain a high level of discipline in handling and maintaining your salary so you never go broke.
