How to Save Money - 10 Money Management Tips


I'm going to give you tips on money management hopefully you'll find it useful.

These tips can be beneficial in many ways, depending on your situation, you can categorize yourself or you may fit yourself into one of these three groups. 

Group 1: If you are trying to get out of debt.
Group 2: If you are trying to live within a tight budget.
Group 3: If you are saving for something in particular.

Now the first step is to ask yourself two questions:
1.     Do I spend more than I earn? 
2.     What can I afford to spend?

You find yourself answer for these two questions and I can help you with 10 money saving tips for you:

1.     Understand Your Financial Situation: 

Know where your money is going
Understand how you spend money.

If you can’t understand your own finances then there's no way you're going to be able to manage your own finances.

It's really important to understand exactly how much is coming in and going out.

You need to know how you spend your money,
For example:
Do you spend a lot of money on a daily basis by being out with friends, about drinking tea, coffee or buying magazines Etc. 

2.     Make A Money Plan Or Budget And Stick To It:

Always make money plans every month, Make a money plan because it's the only way to keep track of your finances.
3.     Do Not Borrow On Credit Cards Or Store Cards Or Go Into Your Overdraft:
This is just one of those things that are obvious yet still people do it. 

You know:
If you can't afford to buy clothes out of your normal current account Or your normal bank account then you shouldn't be able to afford clothes on a credit card.
Some people always spend on a credit cards every month and then they pay their wages off the credit card every month but if you really take a deep look into it then that's living on borrowed time.

You should do it the other way around, you should only spend what you've got.
4.     Pay Off All Your Bills And Debts First.


When you get your money for the month, the first thing you should do is pay your rent, pay phone bill, pay your electric and pay whatever liabilities you have.

Because it's definitely not appreciable that you are going to the shops and thinking oh yeah I'm going to spend a bunch of money on food today and then tomorrow I’m going to buy a 100$ worth of new shoes 

and then think afterwards Oh NO I haven’t got much money now so I'm not going to pay off my bills i-e my phone bill and things like that and that's how you end up getting further into debt.

5.     If You Want To Buy Something, Save For It:

If you really want a new mobile phone or something expensive like that you shouldn’t just buy it on a credit card and then worry about it afterwards how you will pay for it, instead save money for it then buy it when you can buy it with you cash in hand.

6.     Things add up:

You should not enjoy spending money on things that you don't need.
It's really important to try and refrain from buying things such as coffees or food when you're out here and there.

For example:
Your work day lunch: Every single day that would cost you just imagine if you eat out every day and it costs you 2 dollars.

Let's say you spend two dollars per day and there's a five day work week normally so it becomes 10$ a week , so over a year that's five hundred and twenty dollars on eating out in the daytime which you really don't need to do that that's 520 dollars you can spend on something way better.

You can also think about;

How many bottles of water you can save if you have a water bottle with you?

Just ask yourself:
Do you really need to spend on cold drinks regularly?

It sounds little tight, a little bit but it's not tight, it's just that you should know your money and know what you can afford and what you can’t.

7.     Leave on your side for unexpected costs (emergencies):

Something might happen like:
-You might need a new tire for your car/vehicle/bike. 
-You might need to go and visit a family member unexpectedly that means you might need to buy a train ticket.
-You washing your machine might break and you might need give a few dollars to someone to come out and fix it.

There could be loads of different scenarios where you need extra money and even unexpected small costs can add up.

Try To Put Some Money Aside For Unexpected Costs So That It Doesn't Actually Affect Your Main Budget.

8.     Use Pen And Paper Or Your Mobile Or Computer To Write Down At What You've Been Spending:

This is the best way to do it.
For example:
As soon as you get paid, write down the amount 
And then as soon as you spend anything out of that write on the list like:
-Minus 12 in milk.
-Minus 15 on trains or something like that.

By doing this you can keep track of how much you've actually got at any point.

You will find it really useful to actually just write down how much You've got and then it's also important to keep checking your bank statements because some people are bad with money because they don't actually know what's in their account and they don't actually pay attention to what they have, it is really important to know where you stand.

Write down what you've been spending in a month and then compare it with your statements and also with spending of the last month and see where it went wrong this months.

 9. Leave Change And Cards At Home:
If you know that if you have any money in cash whatsoever in your purse, you tend to spend it, you just tend to buy things like anything from anywhere, So Leave Your Change, Notes and Cards at Home.  

And if you know that you can’t trust yourself with the card in your wallet then don't put your bank card in your wallet.

I know what you are thinking:

What if there is any emergency on the way?

I will ask you to manage it yourself and also answer me this question in comments (that’s my way to double check if you are reading with 100% attention J )

10. Not to Buy Anything Until It Almost Gets Due On You:
Don’t buy a thing until it get due on you. We mostly spend our money on facilities not necessities But if you want to manage your finances then don’t buy anything until it is really, really necessary to buy it.

For More on Financial Management, I will recommend a book JB MALATJI.



How to Save Money - 10 Money Management Tips How to Save Money - 10 Money Management Tips Reviewed by Bhoral Bajni on February 27, 2018 Rating: 5

No comments:

Powered by Blogger.