3 Money Management Tips To Help Get Your Life Back On Track
Stop wasting your money! Make sure that you’re getting the most of every dollar by following these three money management tips.
Ever found yourself wide awake at 3 am, worrying about mounting expenses and how you’re going to make ends meet in the oh-so-frightening future? You’re not alone—it’s pretty safe to say that most of us have been there.
You could be in a steady job, making a decent salary as you climb the corporate ladder, and still feel like whatever you’re making just isn’t enough. That’s because there’s so much more to making money than just collecting a paycheck. Is money management tips the need of the hour?
How To Manage Your Money Better: 3 Simple Tips
Getting your finances in order requires actual money management. Follow these basic tips and pretty soon, you can say bye-bye to those sleepless nights.
1. Make budgeting a habit
Budgeting is not tough to understand or set up, but to be successful it needs discipline.
However, budgeting doesn’t have to be a chore—you can turn it into a game by creating a whole bonus structure! For example, you could decide to save 15% of your salary. Every time you manage to go over your target, treat yourself:
- If you manage to save 15-20%: You can allow yourself to buy a new makeup item (say, that Fenty highlighter everyone’s been talking about).
- 20-25%: Go buy yourself a new pair of heels.
- 25-40%: A massage at a nice spa.
- 40% and up: dinner at a Michelin star restaurant.
2. Get more bang for your buck
“Frugal living” may not be the sexiest sounding phrase, but it’s a way of life that will ultimately give you more financial freedom—and who doesn’t want that?
Frugality isn’t the same as stinginess. According to LifeHack, frugal living is simply about making every dollar you spend count by:
- choosing quality over quantity
- staying away from unnecessarily expensive items
- not buying more than you need
If you’re spending over $1,200 a year on a gym membership even though you haven’t been near a treadmill in months, cancel it and just go for a run when you feel like exercising—it’s free! Going to the movies every weekend with your hubby? That’s around a whopping $2,600 a year! you’ll be better off dropping $1,500 on Carousell for a 52-inch screen TV and surround-sound speakers.
Remember: just because you’re saving doesn’t mean that you have to live like a monk.
3. Invest wisely
Nope, investing isn’t just for millionaires; ordinary folks like you and I have a lot to gain from making wise investments. I mean, you’re basically making your money earn more money for you—if that isn’t awesome, I don’t know what is.
You don’t have to dive into stocks, foreign currencies, and bitcoin right away. Taking baby steps is a very important point from the money management tips list. Some basic investments you should consider are:
- Fixed deposits. This is a kind of deposit that promises a fixed rate of interest, depending on the duration and size of your deposit.
- Bonds. Bonds are also called fixed-income securities because investing in them gives you a pre-specified rate of return. And unlike stocks, you can get some of your money back even if an issuer defaults.
- Insurance. Investing in your future is a must, and the earlier you start, the better. Start your retirement plan and protect yourself from potential disaster by investing in insurance for your health, your home, your family, etc.
Having a carefree and happy-go-lucky attitude is all well and good, but when it comes to your finances, you have to be intentional.
Though you can’t really make your life totally worry-free, following these money management steps will definitely minimize your anxieties. Go take control of your finances (and your future) today.