Four money management tips to help you get on top of your finances
Ideally from the moment you start earning money, you should follow key money management principles.
But for most of us, it doesn't quite work out like this. You have good intentions to save and budget, but you end up living month to month waiting for your wages to hit your bank account.
So what sort of money management should you be following?
Read on to find out…
Money management tip #1: Draw up a budget and stick to it
Having a budget is a crucial money management
tip. A budget ensures you manage your money effectively and reach your financial goals, whether they’re short-term or long-term.
A simple budget needs to include how much money you have coming in every month and how much money you have going out every month.
From running a tight budget you can help to ensure you have money left over after all your expenses to help meet your financial goals.
Money management tip #2: Know what you spend your money on
Sometimes it’s hard to keep on top of where all your cash goes. This is why it’s essential to keep a spending diary for at least a month.
This will show you where you spend your money and where you can cut down on spending to have extra money to put to work.
Money management tip #3: Get serious about debt
It’s vital to live as much as a debt free life as you can. This isn’t so much about cleaning you bond on your house, but about paying off your credit and store cards, and any short-term loans with high interest rates.
This type of debt is just sucking up a portion of your income on a monthly basis. Clear this debt and you can put this money to far better uses.
Money management tip #4: Save
Saving is a vital aspect of money management. You can save towards your short-term and long-term goals. It takes time to build up savings, but if you don’t start now, it’s only going to take you longer.
Put away a portion of your income every month into your savings.
You can then explore investment options and how you can get your money to work smarter for you.
So there you have it. Four money management tips to help you get on top of your finances.
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