How to manage money

Learn some usurious and practical things to do in order to manage your money in a better way

Hi today we are going to talk about how to manage money well the first thing to do is track your spending to improve your finances you don’t need a higher paying job or a windfall from a relative to improve your personal finances for many people better money management is all it takes to reduce their spending improve their ability to invest and save and achieve

Financial goals that once seemed impossible even if you like your finances are stuck in a bad place with no way out there are a number of things you can do to even start right now where you are if you don’t know what and where you are spending each month there is a good chance your personal spending habits have room for improvement so take that into account

Second thing you can do is create a realistic monthly budget use your monthly spending habits as well as your monthly take-home pay to set a budget you know you can keep there is no use setting a strict budget you based on drastic changes such as never eating out when you are currently ordering intake out four times a week create a budget that works with your

Lifestyle and spending habits you should see a budget as a way to encourage better habits such as cooking at home more often but give yourself a realistic shot admitting this budget that’s the only way this money management method will work the third thing is build up your savings even if it takes time create an emergency fund that you can dip into when unforeseen

Circumstances strike even if your contributions are small this fund can save you from risky situations in which you are forced to borrow money at high interest rates or possibly find yourself unable to pay your bills on time you should also make general savings contribution to strengthen your financial security in the event of job loss so the next thing to do

Is pay your bills on time every month paying bills on time is an easy way to manage your money wisely and it comes with excellent benefits it helps you avoid late fees and prioritizes essential spending a strong on-time payment history can also lift your credit score and improve your interest rates the fifth thing to do is cut back on recurring charges do you

Subscribe to services you never use it’s easy to forget about monthly subscriptions to streaming services and mobile apps that charge your bank account even when you don’t regularly use these services review your spendings for challenges like this and consider cancelling unnecessary subscriptions to hold on to more money each month the next thing is save up cash to

Afford big purchases certain kinds of loans and debts can be helpful when making major purchases such as a house or even a car that you need right now but for other big purchases cash offers the safest and cheapest buying option when you buy in cash you avoid generating interest and creating a debt that requires months or even years to pay back in the meantime

That saved money can sit in a bank account and accumulate interest that can be put towards your purchase in the seventh and final advice i would say is start an investment strategy even if your ability to invest is limited small contributions to investment accounts can help you use your earned money to generate more income find out if your employer offers 401k

Matching which essentially serves as free money consider opening a retirement account or other investment account the path to better finances starts with changing your own habits some of these changes will be easier than others but if you stay committed to this transformation you’ll end up with great money management skills that will serve you throughout your life

And in the meantime you’ll have more money in your pocket i hope that helps this was everything i wanted to share with you for today have a good day bye

Transcribed from video
How to manage money By Your Personal Advice