Money Leaks

Hi everyone,
It seemed last month the economic situation was improving but this month it seems to be a little bit unstable and fluctuating..anyway I am quite sure both have impact on many people, be it positive or negative...depends on what you do or did...of course to be in the winning situation,one has to hold or to buy more when the price is down and maybe to sell when the price is up...
Have you heard of money leaks...I am a medical doctor and not a CFP, but i don't think it is wrong to be sharing with you all, what little but sound knowledge I have learned about managing our finances...sharing with you all is akin to reminding myself about this thing...

How money leaks happen and how to cure it?

1. Carrying monthly credit card balance is costly,therefore make an effort to pay off your credit card balances in full every month.If you have substantial balance,refrain from putting new expenses on the card.Try to live within budget, remember the seven cures to lean purse I shared with you earlier...try to live within budget which should be within 90% of your income.
2. Purchasing things you don't need!We all have done it...buying on impulse during sales just because these things are on sale for 70% discount.We always think it is simply too damn cheap to pass up...and leave this thing collecting dust in the store at home...let us evaluate the necessity of a purchase before getting caught up in the discount.Sometimes we also buy things in bulk and realised they are near expiry or already expired before we are able to use them and have to be tossed off.Tossing things off also translates as money down the drain.
3. Unnecessary expenses like membership or recreational items or services that we never really use...maybe it is time to consider cancelling them...
4. Review your budget to see where you can cut corners or perhaps even a potential leaks...like do we have to spent RM30-50 on cigarettes every month?or RM50 to watch movie every month?hiring DVD maybe a cheaper option...
5. Review your insurance payment and find out which payment option is cheaper.Paying quarterly or biannually are probably cheaper compared to paying monthly...no harm asking and you don't lose anything but probably have something to gain...

Until my next posting,beware of your financial wound, live with passion and take care.