Managing your money effectively is of vital importance for a stress-free happy and balanced life. Unnecessary stress which sometimes comes from lousy money management skills can affect our capacity to make good decisions, harm our relationships, affect physical and mental health, and ultimately to function well in life.
I would not be amplifying this statement, and it would not be fabrication if I say that the lack of proper skills in Managing your money is one of the leading causes for the break-up in marriages and also the break down of hope.
The good news is, the art of managing your money can be learned. It matters not what your financial problems are, whether it is not earning enough money or you are not a saver. Proper money management skills can reduce the financial stress you and your family go through and give you a bit more mental space to focus on the solutions.
My money management skills were nothing to write home about a few years ago but after hitting rock bottom I had no choice but to seek help. These six of the tips I am sharing with you are the ones that helped me and my family to bounce back from the brink.
You can try them, I am almost sure if you find ways to managing your money your financial situation will improve and most ultimately the quality of your life. I read this article and it was great, you can take a look at it also
Managing Your Money – Pay Attention to Your Spending
In order to halt the deterioration of your financial crisis, you have to find a way to stop the leakage of your money. The best to do this is to pay attention to your spending.
It is very helpful to record all your expenditure for a set period of time this will assist you in having a better idea of how your money is being spent. Most people have no idea how much money is being lost to unnecessary expenses. Once you know where your money is going, you can curtail unnecessary expenses.
Design a Budget Stick to it
Designing a realistic budget is another helpful and necessary tool. When making up your budget make sure at least some of your money goes to debt reduction and savings.
Your budget should meet you and your family’s financial obligations so it means you have to decide as a family what are the priorities and if you have to cut down on certain expenditures to live within your budget then do so.
Good money management comes over time with practice and disciple. The truth is, there are some basic steps you can follow but the real test is how well it is applied. Sometimes what works for one family will not necessarily work for another you have to find what works best for you and your family.
Stick to your budget and give it time to work.
Pay Yourself First is Managing Your Money
This might sound ridiculous but it works and is an excellent way to save. Consider yourself one of your creditors that has to get paid. What I do is join a monthly partner, it is a contractual agreement to deposit a certain amount every month. Other persons are dependent on it so I can’t forfeit my agreement.
Decide on the amount that you can be saved whether weekly, fortnightly or monthly over a long term period and make the commitment to do so. You have to put in the same effort you exert in getting the other bills paid. Consider this a utility bill also. Trust me, this money management decision is life changing as over time it leads to financial independence.
Automates Your Payments
Internet banking is a good way to solve some of our financial stresses and alleviate some of our worries. If a part of your problem is that you are pressed for time to get to the different companies to pay these bills or your income is inadequate and you are not sure which ones to pay, then automate some or most of your payments.
Doing this releases the stress of having to find the time to go pay these bills on time or deciding which ones to pay. You might not be able to automate all your bills or expenses but it is easier to look for a solution for one or two payments as opposed to six or seven. Effectively, automating your payments saves you time and stress and helps you to take control of your financial affairs.
This was one of my favourite, this one allowed me to sleep more peaceful at nights. I did not have to worry about six or seven creditors anymore. If you are able to consolidate a number of debts into one loan at the lowest possible interest rate, your monthly expenditure will decrease, sometimes by a lot.
Owning a home in cases like this is an asset, you will be able to get a home equity loan at comparatively low interest, which is a much better option than a personal loan.
Spend Your Money Wisely
Last but by no way least, spend your money on things of importance and value to you and your family. Whether it be for the necessities of life, entertainment, emergencies or business just ensure that you are getting value for your money.
We can’t be too careful but as much as possible try to get your money’s worth when it is spent. Sometimes we can get carried away when there is an extra amount around to spend and most times we spend it at the expense of things that actually matter such as owning property, funding retirement and paying for education. We have to be on the lookout for this.
One of the best ways to do this is to educate the family so that everyone will have the same vision and goals for the family.
I hope these money management tips will be able to improve the quality of your life and help you to take back the control of your finances, reduce stress, increase savings and make you will make better long term decisions regarding your spending.
Feel free to share these tips with friend and family and leave any valuable tips you have in the comments below.