4 Practical Tips to Manage Your Money
When you are caught in a financial problem, it’s natural for you to worry. And then you start wondering, why you aren’t able to manage your money as good as some other people you know and have the same earning as of yours. Stop wondering and start following the tips given below and you will come to know where exactly the problem is.
1. Pay Keen Attention to Your Spending Habits
Track your spending habits carefully. Jot them down if needed and think if you spent on only things you really needed. Set a period, such as a week or two weeks, and check at the end of that period how much money you are left with.
Studies have revealed that people spend as much as 15% more when they use plastic rather than cash. This goes on adding up over the years and you may end up in debt.
2. Where does the Money Go?
You have to track your money. You probably borrow money from payday lenders. Naturally when money comes to your bank account on your payday, a significant amount goes to repay them. Now, you have to find out where your money goes when you get loans. Maybe you took loan for an illness or other big expense. But other than that, do you eat out a lot? Or do you spend on cigarettes or drinks? Find out where your money goes.
3. Create a Plan
Creating a monthly plan for expenditure is one of the smartest steps you can take towards managing your finances. It can offer you a great peace of mind by giving you an exact idea of where you’ll spend your money. Unfortunately most study courses in schools or colleges don’t teach students how to make such a budget. By making a plan for expenses, you can find whether you can really spend for things you plan to buy casually (without any plan). If you can’t afford to buy them, you can cut them out from the plan. Maybe you can plan to buy them in the next week or month.
4. Try to Replace
After creating a budget, if you observe that you are in an expensive habit, you can consider replacing it with something else. E.g. if you are in a habit of having a high-end coffee on the way to office, you can consider carrying a mug with homemade coffee in it.
Finding out where your money goes and making a plan to save it can help you manage your money. Act on these tips and make your life easy.