It’s really important to manage your money better, though it’s not an easy task to do. Money cannot buy you happiness but it can give you the confidence to live a better life. You can meet all your basic needs, can achieve exotic luxury with money. Hence, money management is a must known subject for every individual in this world.
An individual should be able to save at least 20% of their monthly income to get financial security. If you are lacking in money management it’s harmful to your future. Money management is similar to difficult maths calculation and more about tuning your mindset accordingly.
1.Set Up a Proper Bank Account
Having a proper bank account is crucial thing to manage your money. Create a savings account, recurring deposit, investment account, and more according to your plan. Plan your savings and spendings properly, deposit your income accordingly.
2. Use the Budgeting tool
Few budgeting tools are created and introduced into the market by experts, to calculate and manage your expenditure. Use these tools for while to analyze your income and your expenditure or get suggestions from the application.
These tools can track your monthly expenditure category-wise like food, rent, travel, and others. Have an eye on this and manage your inflow and outflow of money. You can also control your outgoing money by setting up expenditure limits. It warns you when you reach the limit, based on it’s you can control your outflow. All you need to do is just choose the best budgeting app from the play store.
3. Set finance goals
Set an annual finance goal, manage your money accordingly, and reach the goal. This process can increase your confidence and gives you more financial security. Practice this without fail by investing in proper assets or adding your money to the savings account. This way you can prepare a portfolio for your yearly bonus or your retirement funds.
4. Start paying down the debts first
Debt is the biggest burden on your head. It is always good to get rid of your debts first then start planning your savings. If you start savings while having debts you may fail to manage them efficiently. Keeping debts for a long time creates more interest rates where you may have to lose more of your savings. If you have more debts then plan your debts plans accordingly and pay off them as a priority.
5. Start investing
If you are having a good bank balance then it is always good to invest it in some form of assets. Either it can be a physical asset or a virtual asset, you can choose it after going through all terms and conditions. Investing for a long-term return you with amazing return and unexpected profits always. If you are confused about where to invest, then there are many suggestions and tutorials on the internet to follow.
6. Increase your Knowledge
There are countless resources available to gain knowledge on money management like the Internet, youtube, Books, Podcast, and more. It’s more required to have financial knowledge than having more income.
7. Develop Good Credit Debits
Holding a credit card is an advantage if you use it wisely or else it will become a headache for you to pay the credit card debts. Spend from credit card effectively and pay off the complete bills every month to escape from extra debts. Manage your credit funds accordingly to boost your credit score, which gives you the best offers from the bank.
8. Be Persistent with your financial plans
preparing a financial plan is always good practice but never make it a suffocating thing. It is ok to change your plans due to unexpected expenditures. Make your mind persistent in any kind of situation that arises and alters your plans.
Keep in mind that it is not possible to reach your financial goals overnight or over a short period of time. It needs your efforts and wise planning for making it happen. Fine-tune your mind and environment to habituate to all these.
9. Build a Money Management Blueprint
Like Building a Blue Print to construct your dream house, you have to build a financial Blue Print to achieve your financial standards. Follow below three steps to build a money management plan: 1.Start with a budget plan, 2. Keep an eye on your spendings, 3. Make a list of ways to save your income.
10. Build an Emergency account
Apart from all your long-term financial plans, have an emergency account to save some amount for unexpected spendings. You have to keep around 3 to 6 months income of your annual income saved in the emergency account. This can save you from any kind of unexpected debt according to experts’ analysis.
Everyone will abide by certain health rules from a certain age, similarly one should create their own financial plannings. Having financial strength can help you to live a comfortable life in pandemic situations also. Follow these four steps to achieve your financial goals easily. 1. SAVE, 2. INVEST, 3. PAY OFF DEBT, AND 4. REPEAT. Hope this article is helpful to manage your money, comment below your review about this article.
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