You might be earning a large sum of money, monthly or weekly but might be unable to figure out the exact reasons for your frugal expenses. Even if you have problems on how to manage money, it’s never too late as this post will still be pointing at what you need to put into consideration to manage your finances better. Having a good finance manager enhances the quality of your life.
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I am an enthusiast of minimalist living, and I believe that the best way to manage your money is by cutting down on your lifestyle. The best way to do this is through minimalism. If you are willing to know more, get my book ‘the minimalist lifestyle’ it’s a complete guide for beginners. I also have a budget table that helps you map out money for various needs. If you would like to use my budget table, then drop a comment with your email address, and I’ll get to you as quickly as I can.
Today, I will be revealing ten ways how to manage money better. The genuine facts are here, and you could run a check on your financial state with the points I have arranged. However, this may not concern everyone, but I am doing this based on people that are in this category. Without delay, let’s commence. Check out my other blogs, such as “How to Handle a Stock Market Crash“.
Ten Ways How to Manage Money Better
As said earlier that there should be a reduction in your expenses, shop around with online shopping apps to compare prices of products, go for the one that seems cheaper to save a little extra cash.
Preparing a budget for your expenditures each month is essential in managing your finances. It doesn’t require special skills to make a budget as this can be easily done by getting a note or paper, dividing them into two parts. Each of the parts will contain the money that flows in from any sources, and the other will be for the outgoings or expenditures. The difficult part is the outgoing which should contain expenses. Ensure that all regular payments that may come up are added to the list
This includes some things you might not need, which requires to be cut down, such as your monthly subscription, in-app purchases. All these need to be tracked, and then the expenses incurred on them needs to be reduced. You might be used to this system for months or years. However, limiting and keeping track of these expenses would fetch you some excess money to cater for other things.
When you wish to purchase certain expensive items, do not make a hurried decision in buying it because you just received your monthly earnings. Consult your budget if you will be able to cover for its purchase. If your budget doesn’t cover it, it will affect it, and other things in the budget might be neglected without achieving them. The best decision is to begin saving for it when you fall into this situation.
Many unforeseen circumstances may arise without leaving any signs or notification. If you have an emergency fund set aside, yours fully covered without affecting other expenses. When you make your budget, you can include this and ensure you set some amount aside each month. You should only lay your hands on this money set aside if the matter arising is a real emergency. When there’s a sudden expenditure, try to find solutions to it in other expenses such as debts or insurance.
You might not be satisfied with the budget you created or are not skillful enough to make one. You can employ some free finance tools or apps such as money strands to make it easier for you to manage money and tracking your spending habit, shows your balance, and reminds you of future bills.
Keeping track of expenses that are regarded as not too important can also have a dent on your budget. There are times you wonder what you spend your money on, but usually; you spend them in loads of things that are small. If you experience this, you should put down your expenditures in a journal which would cover your small expenditures.
You may think you’re not an expert in managing your finances, but do not forget, finance expert managers also started as a novice. You can improve by investing in personal finance courses that are available online which spell out the way to more saving and fewer expenditures, how to invest, and; have more savings.
When you have debts to pay, you must put them under control. Even if you are not ready to pay them off, do not incur any new debts most especially, outstanding credit card bills as the rate of interest can be extremely high. Make a schedule of all your debts. Find a means to ensure each is paid off in time. This is because the longer it takes you to pay off your debts, the higher the interest becomes. To make things easy, create a list of the outstanding debts. Sum up the interests of each and start to pay from the highest interest to the lowest.
Saving aims to accumulate your wealth, but keeping your money in the bank doesn’t attract interest. You can make your money fetch you more money by deciding on investing in bonds, real estate or a portfolio of stocks. The savings achieve the cash needed.
In your journey to financial freedom, you would come across a lot of things. Still, it shouldn’t be a reason for you to be an extravagant spender. By adhering to the above guides, your ways of how to manage money would change for good. A big Thanks to you for reading through. Please endeavor to like and comment.
Recommended books for further reading:
- The 7 Habits of Highly Effective People – Stephen R. Covey
- Keys to Success – Napoleon Hill
- How to Be Brilliant – Michael Heppell
- Business Secrets from the Bible – Daniel Lapin
- How to Win Friends and Influence People