Smart Moves for Money Management
In the grand scheme of things, handling finance is pretty simple. But it can seem daunting and get stressful. While you traverse into different stages of your career, it becomes necessary to handle money smartly. It isn’t about cutting down on expenses to frugal levels or keeping your credit card frozen, but about making the money work for you instead of the other way round. Being more mindful and tweaking old habits can go a long way in ensuring your finances are well dealt with. Set up systems that take care of your money and how you spend them so you can take a back seat while they continue giving you returns. Here are some simple ways to ensure your finances aren’t spiraling out of control:
Chalk out a budget
The easiest way to manage your money is to keep track of expenses. Look into your essential and lifestyle needs to know where your money is going and review them from time to time. You’ll want to regularly update it. There are a whole lot of free money management apps and websites that will make budgeting simple. Keep tab of it through these and add in details of your bank balance so you are always in the know of what’s happening of your money.
Pay yourself first
Once you get your budgeting into place, you’ll know what you have left once your regular expenses are sorted. This is where you adopt a “pay yourself first” tactic. All you do is set up a regular transfer of funds to a separate savings account. It’s never too early to start saving for your retirement or those unexpected downs. The ideal goal is to save 20 percent of your total income. Seems much? Start off with a smaller amount and start building on it and you’ll have a decent amount of savings in no time.
Pause and reflect
Put those snap financial decisions to a halt. Sure, those designer shoes you have been hankering are just a click and a credit card swipe away, but do they fit in your monthly budget? Give it an hour or two to think about and you’re much more likely to make a wise decision.
Grow your money
A good financial planner slash adviser is your best friend when it comes to growing your money. And it definitely helps when you can tell a good investment from a bad investment. So read up. A little knowledge can a long way in saving you from major financial disasters and keeping you on track. Do an assessment annually to ensure you are adequately diversified.
Splurge on yourself
Every once in a while. Now that your financials are successfully managed, you deserve a reward. One that you should get every now and then. It will keep you motivated and address those cravings. Maybe a nice piece of jewellery or a trip to the spa!