You can become better with money, you might need to re-think how you look at money, but anything is possible! Don’t think that just because in the past you have had issues with money that it has to follow you, you can change how you use money with these tips!
Money is important in our lives, it isn’t easy to come by either, so by making sure that you are looking after it, and making it work hard for you is so important!
Tips to Become Better With Money
Seriously, it is so easy to deal with the principles of money as an adult, but putting it into practice is completely a different ball game!
- Tracking what money you spend. This is a great way to see how much you are spending and what you are buying. This technique can highlight areas of overspending and can even provide answers to where your money is going! This exercise is scary, it is so easy to not think about the coffee on the way to work, or the lunch you buy every day, until you start tracking your every expense!
- Building an emergency fund. This is one of those funds that you need to make, it helps you by giving you money for those emergencies. This stops adding to your debt, because turning to credit is so easy when there is an emergency!
- Use cash, I know this one is hard, it is so easy to pay by card or even your phone. But by using your card instead of cash it can take away the actual value of money!
- Know when bills are due! Have a calendar of all your bills so that you know when you need to pay a bill. This will allow you to manage your money better and avoid unnecessary charges!
- Automation is awesome! The more you can automate your bills the better! But not at the expense of your money! I refuse to pay a monthly payment to my energy supplier because I believe any interest earned is mine, rather than the energy supplier!
- Budget your money! This simple act is the most powerful tool that there is to help you control your money and knowing where it is going! Yet it is one of the most difficult practices to follow, just don’t give up!
Why Manage Your Money
Managing your money is going to allow you to take back control! With the control of where your money, you become more aware of your credit commitments and you make plans for your future.
Money is not something that you should ignore, it allows you to live your life, it helps to provide shelter, food and clothing for you and your family.
By controlling what you are spending and how much you are paying towards interest on debt can help to identify areas that you need to focus on. Paying off debt will reduce the interest payments that you make and can give you more money in your bank account each month!
Create A Savings Plan
It is often an item that comes to mind at the end of the month, saving what you have left. This is the worst decision that you can make with your money as often you won’t have money to save.
Savings are a priority, you should plan to save money from the moment your wages hits your bank account, when you are sorting out your budget.
How to create a savings plan often confuses people, if you are looking for more information Dave Ramsey understands budgeting and saving, he has great advice and it is easy to follow!
It is our responsibility to teach our children how to spend and manage their money, how can we do this if we are not taking proper care of our own.
This includes not budgeting your money for the month and paying for goods on credit! What does this teach our children?
Children learn by example, if we are not showing them the right example how can we expect them to learn how to manage their money as they grow!
Therefore, it is not just for our own benefit but for the benefit of our children to manage our money and understand where it is going each month, making sure it is working for us!
Looking for more articles on finance and budgeting? Are You Struggling To Manage Your Money is a great place to start!