10 Tips to manage your money
We all earn good money every month but we need very professional opinion about managing our funds so we don’t face a day empty. We’ve selected these effective tips to manage/save your money.
1. Where you are spending your money?
It might sound you obvious, but it is helpful to make a breakdown of where you spend most of your salary and it may not be where you think. Spend a week making a note of everything you buy, even the small things. Don’t cheat and be more frugal than usual! You might find out that buying coffee a few times a day is where the majority of your spending is going each week. You’ll end up with a clear picture of your spending habit – which is the best place to start if you’re planning on saving the cash.
2. Cut out unnecessary expenses
When you find that you are spending more than a couple of hundred bucks a week on unnecessary expenses, be ruthless and chop them all out of your routine. This could be anything from cigarettes to after-work drinks, from taking taxis to one place to another. If you make a plan to find ways around these spending habits, including both the big and small expenses, you’ll be surprised how much you’ll start saving immediately. As time goes on, you’ll form new habits and no longer feel as though you’re missing out on the treats you were used to.
3. Set a saving target
This is the most important part of your financial management. Once you’ve determined where you could be cutting back you can work out how much of your money you can afford to save each month & transfer it into a separate account. Once it’s out of sight, and out of mind so to speak, you won’t be as tempted to spend it. If you find it difficult to stick to the amount you’ve set yourself, try taking just cash with you on a daily basis. Bring with you only what you’re planning to spend that day & leave the bank card at home.
4. Work together
If you share rent, meals, bills or other expenses with flatmates, take half an hour to sit down with them & work out where you could all be cutting back, be it on buying cheaper groceries or using less electricity around your home. The same goes for family budgeting, particularly if you have a joint bank account.
5. Plan for the unexpected & emergency
There’s nothing more depressing than, each month, squirreling away money for a house deposit, holiday or new car, just to see it all swallowed up when you have to make an unexpected payment for something urgent. We’ve all been caught out from time to time with a forgotten bill or house repairs for example and it can be very demotivating to watch your nest egg dwindle away. So as well as your regular savings, create separate fund for these occasions, then it will feel like less of a sting when you have to fork out.
6. Make sure you have a target
It’s hard to put away money just for a rainy day. Instead, focus on what you’ll use your savings for in the future. This could be anything from long-term targets such as your kids’ education to short term treats – forgo 10 trips to Starbuck’s and spend the money you save on a new pair of shoes.
7. Reduce your major annual expenses
I suggest you to decide what is your biggest major expense each year and think of ways to avoid them. Many people save up for a holiday each year and spend an inordinate amount on flights and hotel rooms. You might find you have just as much fun staying in home town and treating yourself to some fabulous dinners. You’ll save a fortune even while you feel like you’re treating yourself.
8. Make sure your bank suits your lifestyle
Get stuck into the nitty gritty of what your bank offers you as a customer. IF you’re abroad often, make sure there aren’t high changes for taking out money overseas. If you’re using your account for large savings, look into moving the money to a high interest account. Find out if any of their incentives such as credit card points or discounts in certain stores, will help save your money.
9. Reward yourself
It doesn’t all have to be doom and gloom. If you’ve done well and hit your savings target for the month, buy yourself a small “well done” present, whether it’s a book or a meal out with friends. Giving yourself a pat on the back will motivate you for the month ahead and make you feel like the scrimping and the saving is worth it.