Making ends meet is only one aspect of great money management. It’s okay if you’re not a math wizard; you don’t actually need to be. Here are 10 easy ways for you to manage your money better.
1. Have a budget: Many people don’t budget because they don’t want to go through what they see as a tedious process and ensure everything balances. But, creating a budget is very important.
2. Use the budget: Your budget is useless; if you make it, let it collect dust in a folder tucked away in your bookshelf or file cabinet. Refer to it often throughout the month to help guide your spending decisions and save money. Update it as you pay bills and spend on other monthly expenses.
3. Give yourself a limit for unbudgeted spending: A critical part of your budget is the net income or the amount of money left after subtracting your expenses from your income. If you have any money left over, you can use it for fun and entertainment, but only up to a certain amount. It’s best that you put that spare money into savings or add it to your next budget allocation.
4. Track your spending: Making a few purchases can easily put you over your spending limit. To find out where your money is going and whether or not you are spending more than you should, you should start tracking your spending.
5. Don’t commit to any new recurring monthly bills: Not every loan is worth getting, even if your income and credit score make it possible. Many believe a bank wouldn’t approve them for a credit card or loan if they can’t afford the payments. Always be mindful of making large purchases or taking out loans just because you can get a credit card cashback.
6.Make sure you’re paying the best prices: Comparison shopping is a great way to save money because it helps you find the best deals on the things you need. Try to save money everywhere you can by using coupons, sales, and other means.
7. Save up for big purchases: Putting off big purchases allows you to consider whether you need the item and compare pricing. These things can help you save money, compared to immediately putting the purchase on the credit card.
8. Limit your credit card purchases: Don’t make a purchase with your credit card that you can’t afford, especially on items you don’t really need.
9. Contribute to savings regularly: Establishing a regular savings deposit helps with budgeting and savings in the long run.
10.Being good with money takes practice: In the beginning, you may not be used to planning and putting off purchases until you can afford them. The more you make these habits part of your daily life, the easier it is to manage your money, and you’ll likely have a better financial life.
